- Actual cash value (ACV)
- The replacement cost of damaged property minus depreciation. Many policies pay ACV first and the rest after repairs.
- Additional living expenses (ALE)
- Coverage for the extra cost of living elsewhere while your home is unlivable after a covered loss. It sits under Coverage D, the loss-of-use section of a homeowners policy.
- Amount of loss
- The dollar value of a covered loss under the policy. It is the main question an appraisal panel decides.
- Appraisal award
- The written decision signed by at least two of the three panel members that sets the amount of loss.
- Appraisal clause
- The policy paragraph that lets either side resolve a disagreement over the amount of loss through appraisers and an umpire.
- Appraisal demand
- The written notice from one party to the other invoking the appraisal clause and starting the process.
- Bad faith
- A general term for unreasonable claim handling by an insurer. Oklahoma courts recognize a duty of good faith and fair dealing, and an attorney can explain whether it applies to your facts.
- Betterment
- An improvement beyond the condition before the loss, which a carrier may argue it should not pay for.
- Class 4 shingles
- Shingles rated to the highest impact-resistance class under the UL 2218 test. Many carriers offer premium discounts for them.
- Code upgrade (ordinance or law)
- Coverage that pays for work required by current building codes during repair, subject to its own limit.
- Competent and disinterested
- The standard many policies set for appraisers: qualified to value the loss and free of a stake that compromises independence.
- Cosmetic damage exclusion
- An endorsement that removes coverage for hail dents or marks that change appearance but not function, often on metal roofs.
- Coverage A
- The dwelling coverage on a homeowners policy, covering the house and attached structures.
- Coverage B
- Other structures coverage for detached items such as fences, sheds and detached garages.
- Coverage C
- Personal property coverage for contents such as furniture, clothing and electronics.
- Declarations page
- The summary page of your policy listing the insured, the property, coverage limits, deductibles and endorsements.
- Depreciation
- The reduction in value for age, wear and condition that a carrier subtracts from replacement cost.
- Earthquake endorsement
- Optional coverage added to a property policy for earth movement from earthquakes, usually with its own percentage deductible.
- Functional damage
- Damage that impairs how a material performs, such as a fractured shingle mat or a punctured panel.
- Hail mat / test square
- A marked area on a roof slope, often ten feet by ten feet, where hits are counted to judge whether the slope needs replacement.
- Holdback
- The portion of a replacement-cost claim, usually recoverable depreciation, withheld until repairs are completed.
- Line item
- One priced entry in an estimate, such as a square of shingle removal or a linear foot of drip edge.
- Matching
- The question of whether repaired areas must reasonably match undamaged areas in color, style or texture.
- Mitigation
- Reasonable steps to prevent further damage after a loss, such as tarping a roof or drying out a wet room.
- Named insured
- The person or entity listed on the declarations page as holding the policy.
- Overhead and profit (O&P)
- A general contractor’s markup for managing a job with several trades, often figured as a percentage of the estimate.
- Policy period
- The dates the policy is in force. Losses must generally occur within this window to be covered.
- Proof of loss
- A sworn statement of the amount claimed that some policies require when the carrier asks for it.
- Public adjuster
- A licensed professional who represents a policyholder in presenting and negotiating a claim, separate from an appraiser.
- Recoverable depreciation
- Depreciation the carrier pays back once repairs are finished under a replacement-cost policy.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with like kind and quality at current prices, without subtracting depreciation.
- Reservation of rights
- A letter in which the carrier keeps handling a claim while reserving the right to deny coverage later.
- Roof payment schedule
- An endorsement that pays roof losses at a percentage that drops as the roof ages, rather than full replacement cost.
- Scope of loss
- The full list of damaged items and the repair work each needs, before pricing.
- Squares
- The roofing unit of measure. One square equals 100 square feet of roof surface.
- Steep charge
- An added labor allowance for working on roofs with a steep pitch, commonly 7/12 and above.
- Suit limitation
- A policy clause setting the time within which a lawsuit over the claim must be filed.
- Umpire
- The neutral third member of an appraisal panel who decides items the two appraisers cannot agree on.
- Wind/hail deductible
- A separate deductible for wind and hail losses, often a percentage of the dwelling limit.
- Xactimate
- Estimating software widely used by carriers and contractors, with regional price lists for labor and materials.
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