42 terms
- Actual cash value (ACV)
- Replacement cost minus depreciation. Often the first payment on a replacement cost claim.
- Additional living expense (ALE)
- Coverage for extra costs of living elsewhere while your home is being repaired after a covered loss.
- Amount of loss
- The dollar value of covered damage. The only thing an appraisal panel decides.
- Appraisal award
- The written decision on the amount of loss, binding once signed by two of the three panel members.
- Appraisal clause
- The policy condition that lets either party demand appraisal when they disagree on the amount of loss.
- Battens
- Wood or plastic strips fastened to the roof deck that hold tile in place on some roof systems.
- Business income
- Commercial coverage for lost income while a business is closed or limited because of covered property damage.
- Coinsurance
- A commercial policy condition that can reduce payment if the building is insured for less than a required percentage of its value.
- Coverage A
- Dwelling coverage on a homeowners policy, the limit for the house itself.
- Coverage B
- Other structures coverage for detached garages, walls, fences, ramadas and similar items.
- Declarations page
- The summary page of your policy listing limits, deductibles, endorsements and the policy period.
- Depreciation
- The reduction in value from age, wear and condition, deducted from replacement cost to reach ACV.
- DIFI
- The Arizona Department of Insurance and Financial Institutions, which regulates insurers and handles consumer complaints.
- Elastomeric coating
- A flexible reflective coating applied over spray foam roofs to protect the foam from sun and weather.
- Endorsement
- A written change to a policy that adds, removes or modifies coverage.
- Haboob
- A wall of dust pushed ahead of a collapsing thunderstorm, common during the Arizona monsoon.
- Holdback
- Recoverable depreciation the insurer withholds until repairs are completed.
- Ice dam
- A ridge of ice at the eave that traps meltwater, which can back up under roofing.
- Line item
- A single priced entry in an estimate, such as a quantity of drywall or a roof component.
- Matching
- Whether repairs must reasonably match undamaged areas in color, texture and profile.
- Microburst
- A sudden, concentrated downdraft from a thunderstorm that spreads damaging straight-line wind.
- Mitigation
- Reasonable steps to prevent further damage after a loss, such as tarping or drying.
- Monsoon
- Arizona’s summer storm season, officially June 15 to September 30.
- Ordinance or law coverage
- Coverage for added costs of meeting current building codes during repair.
- Overhead and profit (O&P)
- A general contractor’s charge for coordinating trades and running the job, often 10% plus 10%.
- Price list
- The regional cost database an estimating program uses to price line items.
- Proof of loss
- A sworn statement of the amount claimed, which some policies require within a set time after the insurer asks.
- Public adjuster
- A licensed professional who represents policyholders in preparing and negotiating claims for a fee.
- Recoverable depreciation
- Depreciation you can collect after repairs under a replacement cost policy.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with like kind and quality, without deducting depreciation.
- Scope of loss
- The list of everything that must be repaired or replaced, before pricing.
- Slab leak
- A leak in a water line running beneath a concrete slab foundation.
- Spray polyurethane foam (SPF)
- A sprayed roofing material common on Arizona flat roofs, protected by an elastomeric coating.
- Square
- 100 square feet of roof surface, the standard unit for roofing.
- Steep charge
- An added labor charge for roofs too steep to walk safely, often starting at 7/12 or 8/12.
- Suit limitation
- The policy time limit for filing a lawsuit over the claim.
- Supplement
- A request to add missing items or costs to the insurer’s estimate.
- Surplus lines insurer
- A non-admitted insurer that covers risks the standard market will not. Policies can differ from standard forms.
- Umpire
- The neutral third member of an appraisal panel who decides items the two appraisers cannot agree on.
- Underlayment
- The waterproof layer beneath roof tile or shingles; on tile roofs it does most of the waterproofing.
- Wildland-urban interface (WUI)
- Areas where homes meet forest, brush or grassland, with higher wildfire exposure.
- Xactimate
- Widely used estimating software for property insurance claims.