My rental home was damage by fire that started by the tenant. The insurance claim paid out a portion and the recoverable depreciation portion is to be paid after the work is completed. Does recoverable deprecation belong to me or the company that perform the work?
Its all about what your agreement is with your contractor. In general, you should expect that the combined amount of what the insurance paid you already and what they'll pay once you prove that you had the work done should be in the ballpark of what the repair costs... So, to sum up, you should expect that the "recoverable depreciation" is funds that would go to satisfy the bill of your contractor doing the work. Some professional restoration contractors have you sign an agreement at the outset saying that the check can be cut directly to the contractor.
It should be the contractor along with your deductible. Also if he incurs any additional work that the adjuster didn't see he can submit a supplement request. That money would also be his. Example being electrical inspector condems electric so the insurance company is billed to rewire house as additional charge.