Insurance & Claims Glossary

A

Insurance & Claims

Actual Cash Value (ACV)

Actual Cash Value, or ACV, is an insurance valuation that generally reflects replacement cost minus depreciation.

C

Insurance Claims

Code Upgrade

A code upgrade is work required to bring a repair or replacement into compliance with current building code requirements.

D

Insurance Claims

Deductible

A deductible is the portion of an insurance claim the homeowner is responsible for paying before insurance benefits apply.

E

Exterior Remodeling

Estimate

An estimate is a written breakdown of proposed work, materials, quantities, assumptions, and expected pricing for a project.

H

Roof Damage

Hail Damage

Hail damage is impact damage caused by hailstones striking roofing, siding, gutters, vents, or other exterior materials.

I

Insurance Claims

Insurance Supplement

An insurance supplement is a request for additional claim funds when approved scope, pricing, code items, or hidden damage need correction.

M

Insurance & Claims

Matching Endorsement

A matching endorsement is policy language that may address how undamaged materials are handled when matching damaged materials is difficult.

N

Insurance & Claims

Non-Recoverable Depreciation

Non-recoverable depreciation is depreciation that is not paid back to the policyholder after repairs are completed.

O

Insurance Claims

Ordinance or Law Coverage

Ordinance or law coverage is insurance coverage that may help pay for required code upgrades after a covered loss.

Insurance & Claims

Overhead and Profit (O&P)

Overhead and Profit, or O&P, is an insurance estimate line item sometimes included when a project requires general contractor coordination.

R

Insurance & Claims

Recoverable Depreciation

Recoverable depreciation is money an insurance company may release after approved repairs or replacement work is completed.

Insurance & Claims

Replacement Cost Value (RCV)

Replacement Cost Value, or RCV, is the estimated cost to replace damaged property with comparable new materials before depreciation is applied.

Insurance & Claims

Roof Payment Schedule (RPS)

A Roof Payment Schedule, or RPS, is insurance policy language that can permanently prorate roof coverage based on roof age or other policy terms.

S

Insurance & Claims

Scope of Loss

Scope of loss describes the damaged items and repair or replacement work identified in an insurance claim.

Roofing Problems & Damage

Storm Damage

Storm damage is exterior damage caused by weather events such as hail, wind, fallen debris, or severe rain.

W

Roof Damage

Wind Damage

Wind damage is damage caused when strong wind lifts, creases, tears, loosens, or removes roofing or exterior materials.