43 terms shown
- Actual cash value (ACV)
- The value of damaged property after depreciation, usually replacement cost minus wear, age and obsolescence. Many policies pay ACV first and the rest after repairs.
- Additional living expenses (ALE)
- Coverage for the increase in living costs, such as temporary housing, while your home is unlivable after a covered loss. It usually sits under Coverage D, loss of use.
- Amount of loss
- The dollar value of a covered loss. It is the question an appraisal panel is generally limited to deciding.
- 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 provision that lets either party demand appraisal when they disagree on the amount of loss. Most versions descend from the New York Standard Fire Policy.
- Coinsurance
- A clause, common in commercial policies, that reduces a payment if the property was insured for less than a set percentage of its value.
- Competent and disinterested
- The standard an appraiser or umpire must meet under the New York form: qualified to value the loss and without a stake in the outcome.
- Coverage A (dwelling)
- The part of a homeowners policy that covers the house itself and attached structures.
- Coverage B (other structures)
- Coverage for detached structures on the property, such as a garage, shed or fence.
- Coverage C (personal property)
- Coverage for belongings such as furniture, clothing and electronics, often subject to special limits for certain items.
- Coverage D (loss of use)
- Coverage for additional living expenses or lost rental income while the home cannot be lived in after a covered loss.
- Declarations page
- The summary page of a policy listing the insured, the property, coverage limits, deductibles and endorsements.
- Depreciation
- The reduction in value for age, wear and condition that separates replacement cost from actual cash value.
- Dwelling
- The main residence insured under a policy. Its limit often drives percentage deductibles.
- Endorsement
- A written change to a policy that adds, removes or modifies coverage.
- Hurricane deductible
- A deductible, often 1% to 5% of dwelling coverage, that applies only to losses from the hurricane or windstorm event the policy defines. Common on Long Island, in NYC and in coastal Westchester.
- Ice dam
- A ridge of ice at the roof edge that traps meltwater, which can then back up under shingles and leak into the home.
- Ingress of water
- Water entering a building, a phrase often used in policies to distinguish how and where water got in, such as through a roof opening or from the ground.
- Line item
- A single entry in an estimate describing one task or material, with a quantity and unit price.
- Loss assessment coverage
- Coverage that helps pay your share of a special assessment a co-op or condo board levies after a covered loss to common property.
- Master policy
- The insurance policy a co-op corporation or condo association buys for the building and common areas.
- Matching
- The question of whether undamaged materials must be replaced so repairs match in color, texture or style. Treatment varies by policy.
- Mitigation
- Reasonable steps taken after a loss to prevent further damage, such as tarping a roof or extracting water. Most policies require it.
- NFIP
- The National Flood Insurance Program, the federal program that writes most flood policies. Its policy has its own appraisal provision limited to certain disputes about value.
- NYPIUA (New York FAIR Plan)
- The New York Property Insurance Underwriting Association, the state’s residual market insurer for property owners who cannot find regular coverage.
- Ordinance or law
- Coverage for added costs of repairing to current building codes, such as upgraded electrical or required demolition.
- Overhead and profit (O&P)
- The general contractor’s charge for managing a job and earning a margin, often expressed as a percentage added to an estimate when several trades are involved.
- Proof of loss
- A sworn statement of the amount claimed that some policies require within a set time after the insurer requests it.
- Public adjuster
- A professional licensed by the New York State Department of Financial Services to represent policyholders in presenting and negotiating claims, usually for a percentage fee.
- Recoverable depreciation
- Depreciation withheld from an ACV payment that the policy allows you to recover once repairs or replacement are completed.
- Regulation 64
- The New York DFS regulation (11 NYCRR 216) that sets standards for how insurers handle and settle claims.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without deducting depreciation.
- Reservation of rights
- A letter in which an insurer continues handling a claim while reserving the right to deny coverage later.
- Scope of loss
- The description of what was damaged and what work is needed to repair it, separate from pricing.
- Sewer backup endorsement
- An optional endorsement that adds coverage for water backing up through sewers or drains, often with its own limit.
- Snow load
- The weight of accumulated snow and ice on a roof. Heavy lake-effect snow in Western and Central New York can stress or collapse roofs.
- Square (roofing)
- A unit of roofing area equal to 100 square feet.
- Subrogation
- The insurer’s right, after paying a claim, to recover from a third party who caused the loss.
- Suit limitation
- A policy clause limiting how long you have to sue the insurer. Many New York property policies use two years from the loss; check yours.
- Supplement
- A request to add items or costs to an estimate after the initial inspection, often once hidden damage is found.
- Umpire
- The neutral third member of an appraisal panel who decides items the two appraisers cannot agree on.
- Unit-owners (HO-6) policy
- A policy for a condo or co-op owner covering the interior of the unit, improvements, personal property and liability.
- Xactimate
- Estimating software widely used by insurers and contractors that prices line items using regional cost data.