Insurance Claim Glossary | ACV, RCV, Umpire & More Defined

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A C D E H L M N O P R S T U X

Actual Cash Value (ACV): Replacement cost minus depreciation. Many policies pay ACV first and the rest once repairs are complete.
Additional Living Expense (ALE): Coverage D on a homeowners policy: the increase in living costs while your home is uninhabitable after a covered loss.
Amount of Loss: The dollar value of a covered loss. It’s the only question an appraisal panel normally decides.
Appraisal Award: The written decision of the appraisal panel, signed by at least two of the three members, setting the amount of loss.
Appraisal Clause: The policy provision that lets either party demand appraisal when they disagree on the amount of loss.
Causation: Whether damage was caused by a covered event. Some courts let panels consider causation; others treat it as a coverage question outside appraisal.
Coinsurance: A commercial-policy clause that reduces payment if the property was insured for less than a set percentage of its value.
Collateral Damage: Dents and marks on soft metals, gutters, vents and AC units that confirm hail size and direction.
Coverage A: Dwelling coverage — the house itself and attached structures.
Coverage B: Other structures — detached garages, fences, sheds and similar.
Coverage C: Personal property, or contents.
Debris Removal: Coverage for hauling away damaged property, often with its own sub-limit.
Declarations Page: The summary page of your policy listing coverages, limits and deductibles.
Depreciation: Reduction in value for age, wear and condition. Recoverable depreciation is paid back once repairs are made.
Detach & Reset: Removing an undamaged item to repair something else, then reinstalling it — a satellite dish or gutter guard, for example.
Demand Surge: Temporary spikes in labor and material prices after a major disaster.
Disinterested: Without a financial stake in the outcome. Many appraisal clauses require appraisers to be disinterested or independent.
Estimate Supplement: A request to add items or costs to an existing claim estimate.
Holdback: Recoverable depreciation withheld until repairs are complete.
Line Item: A single entry in an estimate — a quantity, unit, price and description for one task.
Matching: Whether repaired areas can reasonably match undamaged areas in color, texture and appearance.
Mitigation: Steps taken to prevent further damage after a loss — tarping, water extraction, board-up. Policies require reasonable mitigation.
Named-Storm Deductible: A deductible, often a percentage of Coverage A, that applies to damage from a named tropical storm or hurricane.
Ordinance or Law: Coverage for added costs of meeting current building codes when repairing or rebuilding.
Overhead & Profit (O&P): A general contractor’s charge, commonly 10% and 10%, for coordinating multiple trades.
Percentage Deductible: A deductible calculated as a percentage of dwelling coverage rather than a flat dollar amount.
Proof of Loss: A sworn statement of the amount claimed. Policies often require one within a set time after the insurer asks.
Recoverable Depreciation: Depreciation the insurer will pay once repairs or replacement are completed within the policy’s time limit.
Replacement Cost Value (RCV): The cost to repair or replace damaged property with materials of like kind and quality, without deducting depreciation.
Scope of Loss: The list of damaged items and the repairs required. Most appraisal disputes are scope disputes.
Square (Roofing): 100 square feet of roof surface. Roofing is measured and priced by the square.
Steep Charge: Additional labor cost for working on roofs above a certain pitch, often 7/12 or 8/12.
Suit Limitation: The policy deadline to file a lawsuit against the insurer, frequently two years from the loss in Georgia homeowner policies.
Test Square: A marked 10 × 10 foot area of roof where hail hits are counted and photographed.
Umpire: The neutral third member of an appraisal panel who decides items the two appraisers can’t agree on.
Xactimate: The estimating software most insurers and contractors use to price property claims.

Property Insurance Claim Glossary