- Public Insurance Adjuster
- A licensed professional who represents the policyholder (not the insurer) in preparing, presenting, and negotiating a first-party property insurance claim, typically for a fee based on the settlement.
- First-Party Claim
- A claim a policyholder files with their own insurance company for a covered loss to their own property, as opposed to a claim against another party.
- Indemnity
- The insurance principle of restoring the insured to the same financial position they held before the loss, without allowing profit from the claim.
- Actual Cash Value (ACV)
- The replacement cost of damaged property minus depreciation for age, wear, and condition at the time of loss.
- Replacement Cost Value (RCV)
- The cost to repair or replace damaged property with materials of like kind and quality, without any deduction for depreciation.
- Depreciation
- The reduction in an item's value attributable to age, use, and wear, which is subtracted from replacement cost to arrive at actual cash value.
- Deductible
- The portion of a covered loss the policyholder must pay out of pocket before the insurer pays the remaining amount of the claim.
- Proof of Loss
- A formal, usually sworn statement submitted by the insured detailing the amount, cause, and scope of the claimed loss, often required within a set period after the loss.
- Endorsement (Rider)
- A written amendment attached to a policy that adds, removes, or modifies coverage from the base policy terms.
- Fiduciary Duty
- The legal obligation of a public adjuster to act in good faith and in the best interest of the client they represent, including handling any claim funds honestly.
- Appraisal Clause
- A policy provision that lets the insurer and insured each hire an independent appraiser to resolve a dispute over the amount of loss, with an umpire deciding any remaining differences.
- Subrogation
- The insurer's right, after paying a claim, to pursue recovery from a third party who was legally responsible for causing the loss.