Claim Number
The identifier assigned to the claim.
Keep it with all correspondence and invoices.Claim Terminology
Understand the words commonly used during mitigation, claim review, and repairs.
Insurance terminology can make an already stressful property loss harder to follow. These definitions describe common usage without interpreting a specific policy.
Adjuster
A person who investigates, documents, estimates, communicates, or supports claim decisions.
The adjuster's estimate may change as documentation develops.Desk Adjuster
An adjuster who commonly manages the file remotely and coordinates review, approvals, or additional information.
The desk adjuster may rely on field reports and specialist input.Field Adjuster
An adjuster who inspects the property or documents the loss onsite.
Field observations do not always represent the final carrier position.Coverage Decision
The carrier's determination regarding whether and how policy provisions apply.
Contractors do not issue the carrier's coverage decision.Reservation of Rights
A notice that the carrier is investigating while preserving the ability to raise policy defenses.
It is not automatically the same as denial.Deductible
The policyholder portion applied under the policy.
The deductible may affect payment but does not usually reduce the actual work required.Actual Cash Value
A valuation that may reflect payment adjustment.
The initial payment may be lower than replacement cost.Replacement Cost Value
The estimated cost to repair or replace with comparable property, subject to policy terms.
Some policies release part only after qualifying work is completed.Recoverable payment adjustment
payment adjustment that may become payable after eligible repairs or replacement are completed and documented.
Deadlines and proof requirements vary.Nonrecoverable payment adjustment
payment adjustment that is not released later under the policy or item valuation.
Treatment depends on policy terms and item category.Proof of Loss
A formal statement or form supporting the amount and circumstances of a claim.
Requirements and deadlines vary, especially for flood claims.Additional Living Expense
Coverage that may address increased living costs after a covered loss.
Normal living expenses and policy limits affect reimbursement.Business Income
Coverage that may address lost income after a covered suspension of operations.
Waiting periods, restoration periods, limits, and documentation matter.Mortgagee
A lender with a financial interest in the insured property.
The lender may be named on repair payments.Holdback
An amount not included in an initial payment, often tied to payment adjustment or completion.
The reason for the holdback should be identified.Scope of Loss
The documented work and materials associated with the damage.
Mitigation and repair scopes are commonly evaluated separately.Estimate
A projected cost based on observed conditions, assumptions, quantities, and pricing.
An estimate is not the same as an invoice or work authorization.Invoice
A billing record for work performed, materials, equipment, or services.
The carrier may review necessity, duration, quantity, and pricing.Appraisal
A policy process used in some disputes over amount of loss.
Appraisal commonly addresses amount rather than every coverage question.Mediation
A structured negotiation process involving a neutral third party.
Availability depends on jurisdiction, policy, and dispute type.Public Adjuster
A licensed professional who represents a policyholder in claim preparation and negotiation where permitted.
Licensing and fee rules vary by state.Independent Adjuster
An adjuster employed by an independent adjusting company on behalf of an insurer.
The insurer remains responsible for its claim decision.