Insurance Claims Glossary

The value of damaged property after accounting for depreciation — essentially, what the item is worth today, not what it would cost to replace it new. ACV settlements are almost always lower than the cost of actual repairs or replacements.

Coverage for the reasonable costs of temporary housing, meals, and other expenses incurred when your home is uninhabitable due to a covered loss. Hotel bills, restaurant receipts, and storage costs all typically qualify.

A dispute resolution mechanism built into most Florida homeowners policies. If you and your insurer can't agree on the dollar amount of a loss, either party can invoke the appraisal clause. Each side selects an independent appraiser; those appraisers choose a neutral umpire. A written agreement between any two of the three is binding.

A legal agreement that transfers your right to collect an insurance claim to a third party — usually a contractor. The contractor then deals directly with your insurance company on your behalf.

An insurance adjuster who works directly for — or is hired by — your insurance company. Their job is to assess the claim and determine what the carrier should pay. They are not representing your interests.

The four standard coverage sections in a homeowners policy:
A — Dwelling: The structure of your home.
B — Other Structures: Detached garages, fences, sheds.
C — Personal Property: Your belongings inside the home.
D — Loss of Use: Living expenses if your home is uninhabitable.

The summary page at the front of your policy. It lists your coverage limits, your deductibles, your insured address, and the policy period. This is the first thing to pull out when a loss occurs.

The amount you pay out-of-pocket before your insurance coverage kicks in. Florida homeowners policies often carry multiple deductibles: a standard deductible for most claims, and a separate — usually much higher — hurricane or wind deductible.

The reduction in value applied to damaged property based on its age, condition, and expected useful life. Insurers use depreciation to calculate ACV payments. Recoverable depreciation refers to the withheld amount that you can claim back after completing repairs (available under RCV policies).

A formal, sworn statement requested by your insurer as part of the claims process. You are required by your policy to comply. An EUO is conducted by the carrier's attorney and is recorded or transcribed.

A separate policy — distinct from your standard homeowners coverage — that covers damage caused by flooding. In Florida, most homeowners policies explicitly exclude flood. If you don't have a separate flood policy (typically through the NFIP or a private carrier), flood damage is out of pocket.

An adjuster who is not a direct employee of the insurance company — they are contractors hired by carriers on a per-claim basis. Despite the name, they represent the carrier's interests, not yours.

See Additional Living Expenses (ALE / Coverage D).

Coverage for the additional cost of rebuilding or repairing your home to current building codes — which may be more expensive than simply restoring it to its pre-loss condition. Older Florida homes especially may require significant upgrades (electrical, plumbing, hurricane straps) when work is permitted.

A formal, sworn document submitted to your insurer detailing the facts of the loss and the dollar amount you are claiming. Some carriers require it before processing a claim; others request it during disputes. The deadline for submission is typically stated in your policy (often 60–90 days from the date of loss).

A licensed insurance professional who represents the policyholder — not the insurance company — in the preparation, filing, and negotiation of a property insurance claim. Public adjusters are regulated by the Florida Department of Financial Services and are compensated as a percentage of the final settlement. Unlike carrier adjusters, a PA's financial interest is aligned with maximizing your recovery.

The cost to repair or replace damaged property with new materials of like kind and quality, without deducting for depreciation. RCV policies pay out more than ACV policies — usually in two stages: an initial ACV payment, then the withheld depreciation after repairs are completed and documented.

The insurer's legal right to pursue a third party that caused your loss, after the insurer has paid your claim. For example, if a contractor's negligence caused a fire, your insurer may pay your claim and then sue the contractor to recover those costs.

Most policies include a "waiver of subrogation" clause that prevents your insurer from suing certain parties — this is relevant if you are a contractor asked to sign one.

An additional claim filed after the original settlement, covering damage that was not discovered or documented during the initial inspection. Florida law generally allows supplemental claims to be filed within a set period after the original settlement.

The condition of having insurance coverage limits that are insufficient to fully cover a loss. Due to inflation and rising construction costs in South Florida, many homeowners who bought their policies years ago are significantly underinsured — meaning even a full payout won't cover the full cost of rebuilding.