HI Public Adjuster key terms

A financial stake in property such that the insured suffers real economic loss if it is damaged. Hawaii requires it at the time of loss for property coverage to respond.

The core idea that insurance restores an insured to roughly the same financial position held before a loss, no better and no worse, subject to policy limits and deductibles.

A settlement measure equal to replacement cost minus depreciation, unless the policy defines it differently. Many Hawaii policies use ACV as the default payment method.

The amount needed to repair or rebuild with new materials of like kind and quality at current prices, without deducting depreciation. Often paid only after repair or replacement is complete.

The reduction in value from age, wear, obsolescence, or prior condition. Adjusters must calculate and document it whenever a policy settles on an actual cash value basis.

A property provision requiring the insured to carry coverage of at least a stated percentage of value; carrying less reduces the claim payment proportionally.

The amount of each loss the insured absorbs before insurer payment begins. It may be a flat dollar figure or a percentage of the dwelling limit, common for hurricane coverage.

The maximum amount an insurer will pay under a coverage part. Limits apply per occurrence, per item, or per policy period depending on how the form is written.

Coverage that pays extra costs of temporarily living elsewhere while a damaged home is uninhabitable, such as hotel bills and meals above normal expenses, usually for a stated time limit.

A homeowners coverage category that includes additional living expenses and fair rental value lost when the residence cannot be occupied because of a covered peril.

Coverage for windstorm damage from a named or defined hurricane, frequently subject to a separate percentage deductible and sometimes a waiting period after the policy is issued.

A policy that covers only the causes of loss specifically listed, such as fire, windstorm, or vandalism. The insured bears the burden of showing the loss fits a listed peril.

A form covering all risks of direct physical loss except those expressly excluded. The insurer generally must prove an exclusion applies to deny the claim.

A policy provision that removes specified causes or property from coverage, such as earth movement, flood, or intentional acts. Insurers usually carry the burden of proving an exclusion applies.

A situation where a covered and an excluded peril combine to produce one loss, such as wind-driven rain during a storm. Hawaii courts apply the efficient proximate cause analysis to such disputes.

The dominant, initiating cause that sets other causes in motion. When it is a covered peril, the loss may be covered even if an excluded peril contributed.

The insured's obligation to submit records, sit for examinations, and assist the investigation. Breach can prejudice the claim, though Hawaii law limits forfeiture where the insurer was not harmed.

A signed statement detailing the amount claimed, the date and cause of loss, and supporting documentation. Policies set a deadline, and the requirement can sometimes be waived by insurer conduct.

A notarized proof of loss form, common in commercial property claims, executed under oath and often required within a stated period after the insurer requests it.

A formal recorded interview of the insured or a representative, conducted under oath and authorized by the policy, used to clarify facts, damages, and potential misrepresentation.

A false statement of fact that would have influenced the insurer's decision on coverage or claim payment. It can support rescission or denial when relied upon.

Intentional withholding of information material to a claim or policy, such as omitted prior losses or hidden damage. It differs from innocent oversight and can void coverage.

State law setting deadlines for an insurer to acknowledge, investigate, and pay or deny claims, and defining unfair claim practices. Hawaii's unfair practices rules impose similar timing and communication duties.

A written notice that the insurer will investigate or defend while leaving open whether coverage applies, preserving its right to deny later without waiving defenses.

A written explanation of why a claim or portion of it is not covered, citing the specific policy language and facts relied upon. Clear citation helps the insured evaluate appeal options.

An insurer's unreasonable handling of a claim, such as delay without cause, inadequate investigation, or low offers unsupported by the file. Hawaii recognizes a tort remedy for bad faith.

The obligation to persuade the decision-maker. The insured generally must show a covered loss occurred; the insurer generally must show an exclusion or policy defense applies.

A systematic room-by-room or system-by-system survey documenting all damaged and undamaged conditions, with photos, measurements, and notes that support the repair estimate.

Using meters and readings to trace water intrusion through walls, floors, and ceilings, producing a documented map that justifies drying equipment and affected-material removal.

Infrared camera use that reveals temperature differences behind surfaces, helping locate hidden water, missing insulation, or overheating. Findings should be confirmed with moisture readings.

A line-item repair estimate built from standardized unit prices and quantities. Adjusters and contractors use it to compare scope, and public adjusters often prepare one to support the claim.

An improvement beyond the property's pre-loss condition, such as upgrading to a newer roof standard. Insurers may deduct its value because indemnity does not fund upgrades.

Endorsement coverage for extra costs of rebuilding to current building codes, such as upgraded electrical or accessibility features, which base policies often limit or exclude.

A licensed professional hired by the insured, not the insurer, to prepare, document, present, and negotiate a property claim in exchange for compensation, usually a percentage of the settlement.

The obligation to act in the client's best interest, avoid conflicts, safeguard funds, and disclose compensation and relationships. Public adjusters owe this duty to the insured who retains them.

Compensation calculated as a percentage of the claim amount recovered, paid only if the claim produces a settlement. Hawaii caps public adjuster fees and requires a written contract.

The signed agreement between a public adjuster and the insured stating services, fee percentage, cancellation rights, and disclosures. Hawaii requires specific terms and a right to rescind.

Limits on when and how public adjusters may approach potential clients, including prohibitions on contacting disaster victims at certain times and on misrepresenting insurer affiliation.

Statutorily defined misconduct such as misrepresenting policy provisions, failing to investigate promptly, or offering substantially less than a reasonable evaluation. Hawaii treats these as prohibited insurer conduct.

The license issued by the Hawaii Insurance Division permitting an insurer or producer to transact specified lines of insurance in the state, subject to renewal and compliance.

The process of qualifying and registering individuals to sell or negotiate insurance, including public adjuster licensing where required, through examination, application, and background review.

Required periodic coursework licensees complete to maintain an active license, covering law updates, ethics, and technical topics within state-set hour and deadline requirements.