43 terms
- Actual cash value (ACV)
- The value of damaged property at the time of loss, usually replacement cost minus depreciation.
- Additional living expense (ALE)
- Coverage for extra costs of living elsewhere while your home is uninhabitable after a covered loss.
- Appraisal clause
- The policy condition that lets either party demand appraisal when they disagree on the amount of loss.
- Appraisal award
- The written decision, signed by any two of the three panel members, that sets the amount of loss.
- Appraiser
- The person each side names to value the loss on an appraisal panel; usually required to be competent and independent.
- Bad faith
- A legal claim that an insurer unreasonably handled or denied a claim. Decided by courts, not appraisal panels.
- Class 4 shingle
- A shingle rated for the highest impact resistance under the UL 2218 test; common in hail-prone Wyoming towns.
- Collapse
- A coverage term, defined in each policy, for the sudden falling in of a building or part of one, such as from snow weight.
- Cosmetic damage exclusion
- An endorsement that excludes damage that changes appearance but not function, often applied to dented metal roofing.
- Coverage A
- Dwelling coverage — the limit for the house itself and attached structures.
- Coverage B
- Other structures coverage for detached garages, shops, barns and fences.
- Coverage C
- Personal property, or contents, coverage.
- Creased shingle
- A shingle bent back by wind so that it has lost its seal and much of its wind resistance.
- Declarations page
- The summary page of a policy listing limits, deductibles, endorsements and the insured property.
- Depreciation
- The reduction in value for age, wear and condition, subtracted from replacement cost to reach actual cash value.
- Disinterested
- Having no financial stake in the outcome; a requirement many policies place on appraisers.
- Endorsement
- A form that adds to, removes or changes the terms of a base policy.
- Estimate review
- A line-by-line check of an insurance estimate for missing items, measurement errors and pricing issues.
- Ground snow load
- The design weight of snow on the ground at a location, used by building codes to set roof load requirements.
- Holdback
- Recoverable depreciation withheld from the first payment until repairs are completed.
- Ice dam
- A ridge of ice at the eaves that traps meltwater, which can back up under shingles and leak inside.
- Ice and water shield
- A self-adhering waterproof underlayment installed at eaves and valleys, often required by code in snowy areas.
- Line item
- A single priced entry in an estimate, such as a quantity of shingles or a square foot of drywall.
- Matching
- The question of whether replacement materials must reasonably match undamaged materials in color and style.
- Mitigation
- Reasonable steps to prevent further damage after a loss, like tarping a roof or extracting water.
- Ordinance or law coverage
- Coverage for extra costs to bring repaired portions of a building up to current code.
- Overhead and profit (O&P)
- A general contractor’s charge, often 10% plus 10%, for coordinating multiple trades on a repair.
- Percentage deductible
- A deductible calculated as a percentage of Coverage A rather than a flat dollar amount; common for wind and hail.
- Pitch
- The steepness of a roof, expressed as inches of rise per 12 inches of run, such as 6/12.
- Proof of loss
- A sworn statement of the amount claimed, which an insurer may require within a set time after requesting it.
- Recoverable depreciation
- Depreciation that can be collected after repairs are completed under a replacement cost policy.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without deduction for depreciation.
- Reservation of rights
- A letter in which an insurer continues to handle a claim while reserving the right to deny coverage later.
- Scope of loss
- The full list of damaged items and the work needed to repair them.
- Square
- A roofing unit equal to 100 square feet of roof surface.
- Steep charge
- An estimate line adding labor cost for roofs too steep to walk safely, usually 7/12 pitch and above.
- Suit limitation
- The policy condition setting how long you have to file a lawsuit against the insurer.
- Supplement
- A request to add missing or underpriced items to an existing insurance estimate.
- Surplus lines
- Coverage placed with insurers not licensed as admitted carriers in a state, used for risks standard insurers won’t write.
- Test square
- A 10-by-10-foot area marked on a roof slope where hail hits are counted.
- Umpire
- The neutral third member of an appraisal panel who decides items the two appraisers can’t agree on.
- Wind-driven hail
- Hail carried at an angle by strong wind, which damages siding, windows and windward roof slopes.
- Xactimate
- Estimating software widely used by insurers, adjusters and contractors to price property repairs.