Property Insurance Claim Glossary

Reviewed November 3, 2026. General information; the policy, loss facts and applicable law control.

Plain-language explanations for a property-claim conversation. These are general descriptions, not definitions that replace your policy or Florida law. The insurer’s forms, endorsements and the circumstances of the loss matter.

Actual cash value (ACV)

A payment measure that commonly accounts for depreciation. Read the policy’s valuation wording; it may differ by property category.

Replacement cost (RCV)

The cost to repair or replace covered property with comparable materials or quality, subject to the policy. It is different from a home’s real-estate sale price.

Depreciation

An allowance for factors such as age and condition. Ask how each deduction was calculated.

Recoverable depreciation

A withheld amount that may become payable after the policy’s repair or replacement conditions are satisfied. Do not assume every deduction is recoverable.

Deductible

The part of a covered loss the policy assigns to you. Percentage hurricane deductibles may be based on an insured value, rather than the repair estimate.

Declarations page

The policy summary showing items such as the named insured, property, policy dates, limits and deductibles. It is not the entire contract.

Endorsement

A policy amendment that changes coverage or conditions. Review it alongside the base form.

Exclusion

Wording that removes specified losses or circumstances from coverage, subject to any applicable exceptions.

Limit or sublimit

The most a coverage or particular category will pay under its terms. A sublimit may apply within a larger limit.

Additional living expense (ALE)

Coverage that may help with qualifying increased living costs after a covered loss makes the home unfit to live in. Keep receipts and confirm limits.

Mitigation

Reasonable action to prevent additional damage. Safety, policy duties and documentation still matter.

Scope of loss

An organized description of damaged property and supported work needed to address it. A price alone is not a complete scope.

Estimate

A proposed calculation of work, quantities, materials and prices. It is not automatically a coverage decision or agreed settlement.

Proof of loss

A formal statement of the claimed loss, sometimes sworn, required by particular policy terms or programs. Confirm the required form and deadline.

Ordinance or law coverage

Coverage that may address qualifying additional costs caused by enforcement of building requirements after a covered loss. Code obligations and insurance payment are separate questions.

Appraisal

A policy-based process for specified valuation disputes. Its availability and authority depend on the policy and applicable law; it does not resolve every coverage issue.

Mediation

A facilitated settlement discussion. It differs from appraisal and does not guarantee agreement.

Supplemental or reopened claim

Terms for additional claim activity that have specific statutory and policy definitions. Read our deadline guide before assuming that an earlier report preserves every later request.

Reservation of rights

An insurer’s notice that it is investigating or handling a matter while preserving identified coverage defenses. It is not necessarily a final denial.

Release

An agreement that may settle or give up rights. Have a qualified attorney review its legal effect before signing if you are uncertain.

Peril

A cause of loss, such as fire or wind. The policy determines which causes are covered and which exclusions apply.

Rider

Another name commonly used for an endorsement that changes a policy. Read the actual amendment, not just its label.

First-party claim

A request for benefits under a policy that insures you or your property interest.

Third-party claim

A claim against another person or business, potentially involving their liability insurance. It differs from a claim under your own property policy.

Liability insurance

Coverage that may respond to specified legal responsibility for injury or damage to others, subject to its terms. Legal advice belongs with an attorney.

Premium

The amount charged for insurance coverage. It is different from the deductible applied to a covered claim.

Reinsurance

An arrangement through which an insurer transfers specified insurance risk to another insurer. It is not your homeowners policy.

Xactimate estimate

A property-repair estimate prepared using Verisk estimating software. Check quantities, repair methods, materials, price-list date and local costs. Software output does not itself establish coverage or a final settlement.

Claim

A request for benefits under an insurance policy. Reporting a claim does not establish coverage.

Policyholder

The person or entity to whom the policy is issued. Check the named insured and other insured interests.

Property insurance

Coverage for specified property losses, subject to the policy’s causes, exclusions, limits and conditions.

Blanket property coverage

A shared limit for specified property or locations. Sublimits and valuation conditions may still apply.

Coinsurance

A required relationship between the insurance limit and property value. A shortfall may reduce payment under the policy’s formula.

Commercial multiple-peril policy

A package combining coverage parts, often property and liability. It does not insure every exposure.

Domestic insurer

An insurer formed under the laws of the state being discussed.

Foreign insurer

In U.S. state regulation, an insurer formed under another U.S. state’s laws.

Alien insurer

An insurer formed under another country’s laws. Check its regulatory status for the relevant jurisdiction.

Actuary

A professional who uses mathematics and statistics to assess financial risk, including insurance pricing and reserves. This role differs from an adjuster’s work on a particular property claim.

Risk management

Identifying and addressing possible losses through measures such as prevention, financial planning and insurance. Selecting coverage with an agent or broker is different from documenting a loss after it happens.

Use the term in the context of your claim

For a custom kitchen loss, for example, keep the repair scope, material specifications, insurer estimate, depreciation calculation and policy provisions together. Each answers a different question. Ask for an explanation of any item you cannot reconcile.

Continue with our claim FAQ, appraisal and mediation guide, claim timeline guide and verified insurer contacts.

For estimating tools, see Verisk’s pricing research methodology. An estimate should be supported by the actual property and repair evidence.

Discuss your next step with a public adjuster

Luxury homes and complex claims are our focus. All property owners are welcome to call for a free initial claim review. When engaged, we can help document the loss and communicate the supported claim to the insurer.

Call (888) 881-8416 Request a callback

Serving Naples, Tampa, Orlando, Daytona Beach and surrounding communities within approximately two hours of our five offices.

David Dwyer, designated primary adjuster: Florida license W391016. Firm license W807213. Representation and fees require a written agreement. We are not a law firm and do not promise a claim outcome.