43 terms
- Actual Cash Value (ACV)
- What damaged property is worth at the time of loss, usually figured as replacement cost minus depreciation. Many Ohio policies pay ACV first and the balance after repairs.
- Additional Living Expense (ALE)
- Coverage for the extra cost of living elsewhere while your home is unlivable after a covered loss, such as rent, hotel bills or added mileage.
- Appraisal Clause
- The policy provision that lets either party demand a panel of two appraisers and an umpire to set the amount of loss when the two sides disagree on price.
- Award
- The written decision that fixes the amount of loss. An award signed by any two of the three panel members is generally binding on the amount.
- Cosmetic Damage Exclusion
- An endorsement on some policies that excludes dents or marks, often on metal roofing or siding, that change appearance but not function.
- Coverage A (Dwelling)
- The part of a homeowners policy that insures the house itself and attached structures such as an attached garage or porch.
- Coverage B (Other Structures)
- Coverage for detached structures on the property, such as a detached garage, shed or fence, usually set as a percentage of Coverage A.
- Coverage C (Personal Property)
- Coverage for belongings like furniture, clothing and electronics, whether damaged at home or, within limits, elsewhere.
- Coverage D (Loss of Use)
- Coverage for additional living expenses or lost rental income when a covered loss makes the home unfit to live in.
- Declarations Page
- The summary page of a policy listing the insured, property address, coverage limits, deductibles and endorsements.
- Deductible
- The share of a covered loss you pay before the insurer pays. It is subtracted from the claim payment rather than paid to anyone.
- Depreciation
- The reduction in value for age, wear and condition. In a claim it is the difference between replacement cost and actual cash value.
- Derecho
- A long-lived, widespread windstorm produced by a line of fast-moving thunderstorms, like the June 29, 2012 event that swept central and southern Ohio.
- Functional Damage
- Damage that impairs how a component works or shortens its life, such as hail that fractures shingle mat or cracks slate.
- Holdback
- The recoverable depreciation an insurer withholds from the first payment until repairs are completed and documented.
- Ice Dam
- A ridge of ice at a roof edge that traps melting snow, letting water back up under shingles and into walls and ceilings.
- Impartial Appraiser
- An appraiser with no financial stake in the outcome. Many policies require each party’s appraiser to be impartial, independent or disinterested.
- Line Item
- A single entry in a repair estimate, such as removing and replacing a square of shingles, with its quantity, unit price and total.
- Matching
- The question of whether undamaged materials must be replaced so repairs blend with what remains, common with roofing, siding and flooring.
- Mitigation
- Reasonable steps to prevent further damage after a loss, like tarping a roof or extracting water. Most policies require it.
- Mortgagee Clause
- The policy provision that protects the lender’s interest and is why claim checks are often made out to both the owner and the mortgage company.
- Named Peril
- A policy approach that covers only the causes of loss specifically listed, such as fire, lightning or windstorm.
- NFIP
- The National Flood Insurance Program, the federal program that writes most flood policies. Standard Ohio homeowners policies exclude flood.
- ODI
- The Ohio Department of Insurance, the state agency that licenses insurers and enforces claim-handling rules.
- Ohio FAIR Plan
- The Ohio FAIR Plan Underwriting Association, the insurer of last resort for property owners who cannot get coverage in the voluntary market.
- Open Peril
- A policy approach that covers any cause of physical loss unless it is specifically excluded. Most Ohio homeowners policies insure the dwelling this way.
- Ordinance or Law
- Coverage for the added cost of bringing repaired property up to current building codes, usually capped at a percentage of the dwelling limit.
- Overhead and Profit (O&P)
- The general contractor’s charge for managing a job with several trades, often figured as a percentage of the repair estimate.
- Percentage Deductible
- A deductible set as a percentage of the dwelling limit, often 1%–5% for wind or hail on some Ohio policies, rather than a flat dollar amount.
- Pitch
- The steepness of a roof, written as inches of rise per 12 inches of run. Steeper roofs cost more to repair and may need extra safety labor.
- Proof of Loss
- A sworn statement of the amount claimed that some policies require within a set time, often on request from the insurer.
- Recoverable Depreciation
- Depreciation the insurer will pay once repairs or replacement are finished, under a replacement cost policy.
- Replacement Cost Value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without a deduction for depreciation.
- Reservation of Rights
- A letter in which the insurer handles a claim while saying it may later deny coverage on stated grounds.
- Scope of Loss
- The full list of damaged items and the repairs needed to restore them, which drives the size of every estimate.
- Sewer and Drain Backup Endorsement
- An add-on that covers water backing up through drains or a failed sump pump, usually with its own sublimit. Without it, most Ohio policies exclude this water.
- Square (Roofing)
- A unit of roof area equal to 100 square feet, used to measure and price roofing work.
- Suit Limitation
- A policy condition setting how long you have to file a lawsuit over a claim, often one year from the date of loss in Ohio policies.
- Supplement
- A request to add items or costs to an insurer’s estimate, often after hidden damage turns up during repairs.
- Test Square
- A 10-by-10-foot area marked on a roof slope where an inspector counts hail hits to judge whether the slope is damaged.
- Umpire
- The neutral third member of an appraisal panel who decides items the two party appraisers cannot agree on.
- Umpire Selection
- The process of the two appraisers agreeing on an umpire, or, if they cannot, asking a court in the county of the loss to appoint one.
- Xactimate
- Estimating software used by most insurers and many contractors to price repairs from regional unit-cost databases.