- Actual cash value (ACV)
- The value of damaged property at the time of loss, usually figured as replacement cost minus depreciation. Some policies define it differently, so check yours.
- Amount of loss
- The dollar value of covered damage. It’s the question appraisal is designed to answer.
- 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 the parties resolve a disagreement over the amount of loss through two appraisers and an umpire instead of in court.
- Coinsurance
- A clause, common in commercial policies, that can reduce payment when property is insured for less than a required percentage of its value.
- Collapse coverage
- A narrow additional coverage for abrupt collapse caused by listed perils, such as hidden decay or the weight of ice and snow. Settling and cracking are typically excluded.
- Contents inventory
- A room-by-room list of damaged or destroyed personal property, with descriptions, ages, quantities and values.
- Declarations page
- The summary page of a policy listing the insured, the property, coverages, limits, deductibles and endorsements.
- Deductible
- The part of a covered loss the policyholder bears, subtracted after the loss has been valued.
- Depreciation
- The reduction in value of property due to age, wear and condition, used to figure actual cash value.
- Derecho
- A widespread, long-lived windstorm driven by a fast-moving line of thunderstorms, such as the July 2006 derecho that caused widespread damage and outages in the St. Louis area.
- Disinterested and competent
- Common policy wording for appraiser qualifications: competent means able to value the loss, and disinterested generally means having no improper stake in the outcome. How these words are applied can vary.
- Earth movement exclusion
- A standard exclusion for losses caused by earthquake, landslide, subsidence, sinkholes and other shifting of the ground, subject to any exceptions the policy lists.
- Functional vs. cosmetic damage
- Functional damage affects a component’s ability to do its job, such as shedding water, while cosmetic damage affects appearance only. Some policies exclude cosmetic damage to roofs or siding.
- Holdback
- A common name for the recoverable depreciation an insurer keeps back until repairs are complete.
- Ice dam
- A ridge of ice along a roof’s edge that traps melting snow, which can back up under shingles and leak into the home.
- Independent appraiser
- An appraiser hired by one party under the appraisal clause who must still meet the policy’s standard of independence or impartiality.
- Karst
- A landscape shaped by dissolving bedrock such as limestone and dolomite, marked by caves, springs and sinkholes. Large parts of Missouri, especially the Ozarks, are karst.
- Line-item estimate
- An estimate that lists each repair task separately with its quantity, unit price and total, so two estimates can be compared item by item.
- Loss of use / ALE
- Coverage for additional living expenses, such as temporary housing and extra meal costs, when a covered loss makes the home unlivable.
- Matching
- The question of whether replacement materials must reasonably match undamaged areas in color, texture or style, and what happens when they can’t. Policy wording controls.
- Mine subsidence
- Sinking of the ground caused by the failure of old underground mine workings. Standard policies generally exclude it unless specific coverage is added.
- Missouri Department of Commerce and Insurance (DCI)
- The state agency that regulates insurers and adjusters doing business in Missouri and accepts consumer complaints.
- Missouri FAIR Plan
- The common name for the Missouri Property Insurance Placement Facility, which provides basic property coverage to owners who can’t obtain it in the standard market.
- Mitigation
- Reasonable steps taken after a loss to prevent further damage, such as tarping a roof or drying out wet rooms. Most policies require it.
- Mortgagee clause
- A policy provision protecting the lender’s interest in the insured property, which is why lenders are often named on claim checks.
- Named-peril policy
- A policy that covers only the causes of loss it specifically lists, as opposed to an open-peril policy that covers everything not excluded.
- Ordinance or law coverage
- Coverage for added costs to bring repaired or rebuilt property up to current building codes, often limited to a percentage of the dwelling limit.
- Overhead and profit (O&P)
- Allowances for a general contractor’s business costs and profit, often figured as percentages of an estimate, when a repair needs several trades coordinated.
- Percentage deductible
- A deductible calculated as a percentage of a coverage limit, usually the dwelling limit, rather than a flat dollar amount.
- Pitch
- The steepness of a roof, written as inches of rise per 12 inches of horizontal run, such as 6/12. Steeper roofs usually cost more to repair.
- Proof of loss
- A sworn statement of the amount claimed and the details of the loss, which many policies require within a set time after the insurer asks for it.
- Recoverable depreciation
- Depreciation withheld from the first payment under a replacement cost policy that can be collected once repairs or replacement are finished, within the policy’s time limit.
- Replacement cost value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without subtracting depreciation.
- Reservation of rights
- A letter in which the insurer keeps handling a claim while reserving the right to deny coverage later for stated reasons.
- Scope of loss
- The description of what was damaged and what work is needed to repair it, before any pricing is applied.
- Sewer/drain backup endorsement
- An add-on that covers damage from water backing up through sewers or drains, which standard policies usually exclude.
- Sinkhole
- A depression or opening that forms when soil or rock drops into a void below, often where bedrock has dissolved.
- Square (roofing)
- A unit of roof area equal to 100 square feet.
- Straight-line wind
- Damaging thunderstorm winds that blow in one general direction, unlike the rotating winds of a tornado. Policies usually treat both as windstorm.
- Suit limitation clause
- A policy provision setting how long you have to file a lawsuit against the insurer. Deadlines vary, and appraisal may not pause them.
- Supplement
- A request for additional payment for damage or costs found after the original estimate, often once repairs begin.
- Surface water
- Water on the ground from rain or snowmelt that hasn’t entered a defined channel. Homeowners policies commonly exclude it along with flood.
- Umpire
- A neutral third person chosen by the two appraisers, or appointed by a court, who decides the items the appraisers can’t agree on.
- Vexatious refusal
- A Missouri legal claim under statutes such as RSMo 375.296 and 375.420 that may allow added penalties and attorney fees when an insurer refuses to pay without reasonable cause. Whether it applies is a question for a Missouri attorney.
- Wind/hail deductible
- A separate deductible for wind or hail losses, often written as a percentage of the dwelling limit in Missouri policies.
- Xactimate
- Estimating software widely used by insurers, adjusters and contractors that applies regional price lists to line-item repair estimates.
