Claim Holdback Gap Calculator

Carriers withhold depreciation until restoration completes. This calculator sizes the cash-flow gap.

Total claim value

Holdback %

Carry rate

Months to release

Holdback carry cost

$15,120

Holdback amount

$168,000

Monthly carry cost

$1,260

How the math works

Holdback = claim × holdback %. Carry = holdback × rate × (months ÷ 12).

Line up a construction line of credit or reserve equal to 30-40% of claim value at intake. Owners that try to float the holdback from operating cash routinely stall restoration — and stalled restoration is the most expensive state for a claim.

How to Use

Enter total claim value.
Enter depreciation holdback %.
Enter carry rate (% annual).
Enter months to full release.
Read holdback carry cost.

Frequently Asked Questions

How holdback works?

Replacement-cost policies pay ACV upfront (rough 50-70% of RCV on aged assets), holding the depreciation portion until the insured completes rebuild and submits final invoices. Bridges the gap between depreciated cash value and full replacement.

Timing friction?

Average rebuild 6-18 months. During that window owner funds the gap between ACV payout and actual rebuild cost. Add restoration contractor's payment schedule mismatch (typically 30-50% upfront, 70% on rough completion).

Managing holdback?

Prompt carrier communication at each milestone. Photo documentation of each phase. Submit supplemental claims as scope expands. Request periodic depreciation releases at 50% and 75% completion — not all carriers allow but worth asking.