Is insurance company required to release all depreciation if I complete work for less than there estimate?

When an insurance company pays out a claim for property damage, they typically use a method called Actual Cash Value (ACV) to calculate the amount of the payout. ACV is the replacement cost of the damaged property, less depreciation. Depreciation is the decrease in value of the property due to age, wear and tear, or other factors. Once the repairs or replacements have been made, the insurance company may pay out the remaining depreciation if the work was done for less than the estimated amount. However, this is not required by law and depends on the specific terms of the insurance policy. In some cases, insurance policies may include provisions that allow the insurer to retain some or all of the depreciation even if the actual repair costs are lower than the estimated amount. It is important to carefully review the terms and conditions of your insurance policy to understand your rights and obligations. It is also important to note that the insurer may require proof of the completed repairs and that they were done to the standard outlined in the policy before releasing any depreciation funds. If you have any questions or concerns about your insurance claim, it is recommended that you consult with your insurance agent or a legal professional.