Insurance Claim Glossary | ACV, Umpire, Ice Dam & More

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Actual Cash Value (ACV): The replacement cost of damaged property minus depreciation. Many policies pay this amount first.
Additional Living Expense (ALE): The extra cost of living elsewhere while your home is unlivable after a covered loss. It usually falls under loss of use coverage.
Appraisal award: The written decision that sets the amount of loss, signed by at least two of the three panel members.
Appraisal clause: The policy provision that lets either side demand a panel to decide a disputed amount of loss.
Chapter 176D: The Massachusetts law on unfair methods of competition and unfair claim settlement practices in insurance. Appraisal does not decide claims under it.
Chapter 93A: The Massachusetts consumer-protection law. Whether it applies to an insurance dispute is a legal question for an attorney.
Code upgrade / Ordinance or law: Coverage for added costs to bring repaired work up to current building codes. It is often subject to a separate limit.
Coverage A: Dwelling coverage for the house itself and attached structures.
Coverage B: Other structures coverage for detached buildings such as garages, sheds and fences.
Coverage C: Personal property coverage for your belongings.
Coverage D: Loss of use coverage, including additional living expense and fair rental value.
Declarations page: The summary page of a policy listing the insured, property, limits, deductibles and policy period.
Deductible: The portion of a covered loss you pay before the insurer pays.
Depreciation: The reduction in value for age, wear and condition. It is subtracted from replacement cost to reach actual cash value.
Disinterested appraiser: An appraiser with no financial or personal stake in the outcome, as most appraisal clauses require.
Division of Insurance: The Massachusetts state agency that regulates insurers and handles consumer complaints. It is part of the Office of Consumer Affairs and Business Regulation.
Fair rental value: The rent you lose when a covered loss makes a rented part of your property unlivable.
HO-3: A common homeowner policy form covering the dwelling on an open-perils basis and belongings on a named-perils basis.
HO-6: A condo unit owner policy covering interior improvements, belongings, loss of use and some liability.
Holdback: Recoverable depreciation the insurer withholds until repairs are completed.
Ice dam: A ridge of ice at the roof edge that blocks melting snow, which can back water up under shingles and into the house.
Line item: A single entry in an estimate, such as one material or task with a quantity and unit price.
Loss of use: Coverage for added living costs or lost rent while a home cannot be lived in after a covered loss.
Master policy: The insurance an association carries on a condominium building and common areas.
Matching: The question of whether undamaged materials must be replaced so repairs look uniform with the rest of the surface.
Mitigation: Steps taken to prevent further damage after a loss, such as tarping or water extraction. Most policies require reasonable mitigation.
MPIUA / FAIR Plan: The Massachusetts Property Insurance Underwriting Association, the state’s insurer of last resort for property coverage. It insures many coastal homes.
Named-storm deductible: A separate deductible, often a percentage of the dwelling limit, that applies to damage from a named storm or hurricane.
Nor’easter: A coastal storm with strong northeast winds, common in New England from fall through spring, that can bring wind, snow, surge and flooding.
Overhead and profit (O&P): Charges for a general contractor’s business costs and margin, often around 10% each when a job needs coordination of several trades.
Pitch: The steepness of a roof, written as rise over a 12-inch run, such as 8/12. Steeper roofs often cost more to repair.
Proof of loss: A sworn statement of the amount claimed that some policies require within a set time after a loss or a request.
Recoverable depreciation: Depreciation that a replacement cost policy pays back once repairs are completed.
Reference (standard fire policy): The procedure in the Massachusetts standard fire policy for disinterested referees to determine a disputed amount of loss. Many forms call it appraisal.
Replacement Cost Value (RCV): The cost to repair or replace damaged property with like kind and quality, without subtracting depreciation.
Scope: The list of damaged items and the work needed to repair them. Many disputes are about scope rather than price.
Snow load: The weight of snow and ice on a roof. Heavy loads can crack rafters or cause collapse.
Square: A roofing unit equal to 100 square feet of roof surface.
Sub-limit: A cap inside a broader coverage that limits payment for a specific type of property or loss.
Supplement: A request to add items or costs to an estimate after the first one, often because hidden damage was found.
Triple-decker: A three-family wood-frame house with one unit per floor, common in Worcester, Dorchester, Lowell and other Massachusetts cities.
Umpire: The neutral third panel member who decides items the two appraisers cannot agree on.
Waste factor: Extra material added to an estimate to account for cutting and fitting, especially on roofs and flooring.
Xactimate: Estimating software widely used by insurers, adjusters and contractors to price property repairs line by line.

Property Insurance Claim Glossary