42 terms
- Actual cash value (ACV)
- The value of damaged property at the time of loss, commonly replacement cost minus depreciation.
- Additional living expense (ALE)
- Coverage for the increase in living costs when a covered loss makes your home unlivable.
- Amount of loss
- The dollar value of covered damage. It is the question an appraisal panel decides.
- Appraisal award
- The written decision setting the amount of loss, binding when signed by two of the three panel members.
- Appraisal clause
- The policy condition that lets either side demand appraisal when they disagree on the amount of loss.
- Arkansas Insurance Department
- The state agency that licenses insurers, reviews filings and handles consumer complaints.
- ARRUA
- The Arkansas Rural Risk Underwriting Association, the state’s statutory residual market for basic property coverage in designated rural areas.
- Coinsurance
- A commercial policy clause that reduces payment if the property was insured below a set percentage of its value.
- Collateral damage
- Dents and marks on gutters, vents, AC units and similar items that help confirm a hailstorm’s size and date.
- Contents
- Personal property such as furniture, clothing and electronics, usually Coverage C on a homeowner policy.
- Coverage A
- Dwelling coverage for the house itself on a homeowner policy.
- Coverage B
- Other structures coverage for detached garages, fences, sheds and similar buildings.
- Debris removal
- Coverage for removing damaged property and, within limits, fallen trees.
- Declarations page
- The summary page listing your coverages, limits, deductibles and policy period.
- Depreciation
- The reduction in value due to age, wear and condition. Recoverable depreciation can be paid after repairs.
- Drip edge
- Metal flashing at roof edges that directs water into gutters. Often missing from roof estimates.
- Earth movement exclusion
- A standard exclusion for earthquakes, landslides and similar events unless an endorsement adds coverage.
- Endorsement
- A form that adds to, removes from or changes a policy’s coverage.
- Glaze ice
- The clear, dense ice formed by freezing rain, responsible for most ice storm damage.
- 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 then back up under shingles.
- Impartial
- Without bias toward either side. Most appraisal clauses require appraisers and umpires to be impartial.
- Line item
- A single entry in an estimate, with a description, quantity and unit price.
- Matching
- Whether replacement materials reasonably match undamaged materials in color, texture and profile.
- Mitigation
- Reasonable steps to prevent further damage after a loss, such as tarping or water extraction.
- New Madrid Seismic Zone
- A seismic zone affecting northeast Arkansas. Earthquake damage generally requires separate coverage.
- 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 multiple trades, often 10% overhead and 10% profit.
- Percentage deductible
- A deductible calculated as a percentage of the dwelling limit, common for wind and hail.
- Pitch
- A roof’s steepness, expressed as inches of rise per 12 inches of run, such as 6/12.
- Proof of loss
- A sworn statement of the amount claimed, often required within a set time after the insurer requests it.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without deduction for depreciation.
- Roofing square
- 100 square feet of roof surface, the standard unit for roofing estimates.
- Scope of loss
- The list of damaged items and the work needed to repair them.
- Steep charge
- Extra labor cost for working on roofs above a certain pitch, commonly 7/12 or 8/12.
- Straight-line wind
- Damaging wind from thunderstorms that is not rotating, sometimes exceeding tornado-strength speeds.
- Suit limitation
- The policy clause limiting how long you have to file a lawsuit against the insurer.
- Supplement
- A request for additional payment for items missed or discovered after the original estimate.
- Test square
- A 10-by-10-foot area on a roof slope used to count and document hail hits.
- Umpire
- The neutral third member of an appraisal panel who decides items the two appraisers can’t resolve.
- Wind-driven rain
- Rain forced into a building by wind. Coverage often depends on whether wind first created an opening.
- Xactimate
- Widely used estimating software for property insurance claims, with regional price lists.