Plain-English Property Claim Glossary

Actual cash value

The value of damaged property after depreciation is subtracted from its replacement cost. Many policies pay this amount first and the rest once repairs are complete.

Additional living expense

Coverage for the extra costs of living elsewhere while your home is unlivable after a covered loss, such as rent, meals and mileage above your normal spending.

Appraisal award

The written decision of an appraisal panel stating the amount of loss. Under typical wording it is binding on amount once signed by any two of the three panel members.

Appraisal clause

The policy condition that lets either party ask for a panel to settle a disagreement over the amount of a covered loss.

Bureau of Insurance

The Maine state agency, within the Department of Professional and Financial Regulation, that regulates insurers and takes consumer complaints about claim handling.

Cedar shingle

A wood roofing or siding material common on older Maine capes and coastal cottages. Repair estimates often turn on matching weathered shingles and the higher labor involved.

Coverage A

The part of a homeowners policy that covers the dwelling itself, including attached structures like a connected garage or ell.

Coverage B

The part of a homeowners policy that covers other structures on the property not attached to the house, such as a detached barn, shed or fence.

Coverage C

The part of a homeowners policy that covers personal property, meaning the contents you own such as furniture, clothing and tools.

Coverage D

The part of a homeowners policy that covers loss of use, usually additional living expense or lost rental income while the home cannot be lived in.

Declarations page

The summary page of a policy listing the insured, the property, coverage limits, deductibles and the policy period.

Deductible

The portion of a covered loss you pay before the policy pays. It is usually a flat dollar amount but can be a percentage for some perils.

Depreciation

A reduction in value for age, wear and condition, subtracted from replacement cost to arrive at actual cash value.

Disinterested appraiser

An appraiser with no financial stake in the outcome of the claim beyond an agreed fee and no relationship that would bias the result. Most appraisal clauses require it.

Ell

A wing attached to a Maine farmhouse, often part of the connected big house, little house, back house and barn layout. Damage to an ell is usually covered as part of the dwelling.

Freeze exclusion

A policy provision denying coverage for frozen pipe damage unless the owner kept heat on or drained the plumbing and shut off the water. Also called a heat-maintenance condition.

Holdback

The depreciation a carrier withholds from an initial payment until repairs or replacement are completed, under a replacement cost policy.

Ice and water shield

A self-sealing waterproof membrane installed under roofing along eaves and valleys to stop water backed up by ice dams. Building codes in cold climates often require it at the eaves.

Ice dam

A ridge of ice that forms at the roof edge when melting snow refreezes, causing water to back up under shingles and into ceilings and walls.

Line item

A single entry in a repair estimate that describes one task or material, with a quantity, unit and price.

Matching

The question of whether undamaged materials must be replaced so repairs look uniform, for example when a discontinued siding color cannot be matched.

Mitigation

The steps taken right after a loss to prevent further damage, such as tarping a roof, extracting water or running dehumidifiers. Most policies require reasonable mitigation.

Named storm deductible

A separate deductible that applies when damage comes from a named storm or hurricane, often set as a percentage of the dwelling limit. Also called a percentage deductible.

Ordinance or law coverage

Coverage for the added cost of bringing repaired parts of a building up to current building codes, usually limited to a percentage of the dwelling limit.

Overhead and profit

The general contractor’s charge for coordinating trades and running the job, commonly figured as a percentage added to an estimate when several trades are needed.

Proof of loss

A sworn statement of the amount claimed that many policies require within a set time after the carrier asks for it.

Puffback

A misfire in an oil burner that blows soot and smoke through the furnace, ductwork and living space. Cleanup can reach every surface in the house.

Recoverable depreciation

Depreciation that a replacement cost policy pays back once repairs or replacement are completed and documented.

Replacement cost value

The cost to repair or replace damaged property with materials of like kind and quality, without subtracting depreciation.

Scope of loss

The list of damaged items and the repairs needed for each, which forms the basis of an estimate.

Square

A roofing unit equal to 100 square feet of roof surface. Estimates count roofing in squares, plus a waste allowance.

Standing-seam metal roof

A metal roof with raised interlocking seams, common in Maine snow country because it sheds snow well. Repairs often involve whole panels rather than small patches.

Steep charge

An added labor charge for working on roofs above a certain pitch, reflecting the extra safety gear and time steep slopes demand.

Storm surge

Coastal flooding pushed ashore by a storm’s winds. It is treated as flood and excluded under standard homeowners policies.

Supplement

A request for additional payment after the first estimate, usually because hidden damage was found or items were missed.

Surplus lines carrier

An insurer not licensed as a standard admitted carrier in the state but allowed to write coverage that the standard market will not. Many hard-to-place Maine homes are insured this way.

Umpire

The neutral third member of an appraisal panel, chosen by the two appraisers, who decides items they cannot agree on.

Unoccupancy

A condition where a building is furnished but nobody is living in it, such as a seasonal camp in winter. Some policies limit certain coverages after a set period of unoccupancy.

Vacancy clause

A policy provision that limits or removes coverage for some perils when a building has been empty of people and most belongings for a stated period, often 30 or 60 days.

Wind-driven rain

Rain forced into a building by high winds. Policies often cover it only when wind first creates an opening in the roof or walls.

Xactimate

Estimating software widely used by insurance carriers and adjusters to price repairs line by line using regional price lists.

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