- Actual cash value (ACV)
- Replacement cost minus depreciation. Many policies pay ACV first and the rest after repairs.
- Additional living expense (ALE)
- Coverage for extra costs of living elsewhere while your home is being repaired.
- Amount of loss
- The dollar value of covered damage. It’s the question an appraisal panel decides.
- Appraisal award
- The written decision that sets the amount of loss, binding when signed by any two of the three panel members.
- Appraisal clause
- The policy provision that lets either side demand appraisal when they disagree on the amount of loss.
- Appraiser
- The person each side names to value the loss. Policies usually require a competent and disinterested appraiser.
- Coverage A
- Dwelling coverage for the house itself and attached structures.
- Coverage B
- Other-structures coverage for detached garages, sheds and fences.
- Coverage C
- Personal property coverage for contents.
- Coverage D
- Loss-of-use coverage, including additional living expenses.
- Debris removal
- Coverage for removing debris after a covered loss, often with separate limits for trees.
- Declarations page
- The summary page of your policy listing limits, deductibles and endorsements.
- Deductible
- The part of a covered loss you pay before the policy pays.
- Depreciation
- The reduction in value for age and wear. Recoverable depreciation is paid after repairs under a replacement cost policy.
- DOBI
- The New Jersey Department of Banking and Insurance, the state’s insurance regulator.
- Endorsement
- A policy amendment that adds, removes or changes coverage.
- FAIR Plan
- A state-backed insurer of last resort. In New Jersey it’s the New Jersey Insurance Underwriting Association.
- Flood exclusion
- The homeowners policy provision that excludes surface water, storm surge and related flooding.
- Holdback
- Recoverable depreciation the insurer holds until repairs are completed.
- Hurricane deductible
- A separate deductible, often a percentage of Coverage A, that applies when the policy’s hurricane trigger is met.
- Ice dam
- A ridge of ice at the eaves that traps meltwater, which can back up under shingles into the home.
- Line item
- A single priced entry in an estimate, such as one square of shingles.
- Matching
- Whether repaired areas must reasonably match undamaged areas in color, texture and style.
- Mitigation
- Steps taken to prevent further damage after a loss, such as tarping or drying.
- NFIP
- The National Flood Insurance Program, the federal program that writes most flood insurance.
- Nor’easter
- A coastal storm with northeast winds, common in New Jersey in fall and winter.
- Ordinance or law coverage
- Coverage for added costs of meeting building codes during repairs.
- Overhead and profit (O&P)
- A general contractor’s charge for coordinating a repair, often 10% plus 10%.
- Proof of loss
- A sworn statement of the amount claimed, sometimes required by the insurer.
- Public adjuster
- A state-licensed professional who represents policyholders in handling and negotiating claims.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with similar materials, without depreciation.
- Reservation of rights
- A letter in which the insurer investigates while reserving the right to deny coverage.
- Scope
- The list of damaged items and repairs included in an estimate.
- Square
- 100 square feet of roof surface.
- Suit limitation
- The policy deadline for filing a lawsuit against the insurer, often 12 months in New Jersey.
- Supplement
- A request to add items or costs to an existing estimate.
- Umpire
- The neutral third panel member who decides items the appraisers can’t agree on.
- Uniform Construction Code (UCC)
- New Jersey’s statewide building code, which governs permits and repairs.
- Windstorm deductible
- A deductible that applies to wind losses generally, broader than a hurricane deductible.
- Xactimate
- Estimating software widely used by insurers and contractors to price repairs.
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