MD Public Adjuster key terms

A financial stake in property such that the insured benefits from its continued existence and suffers measurable loss if it is destroyed. Maryland requires an insurable interest at the time of loss for a property claim.

The rule that a property claim payment restores the insured to roughly the same financial position as before the loss, no better and no worse, which is why depreciation and policy limits constrain recovery.

The mutual duty of insured and insurer to deal honestly and disclose material facts, including conditions affecting the risk. A material misrepresentation, such as concealing a prior loss, can void coverage.

An insurance policy drafted by the insurer and offered on a take-it-or-leave-it basis. Ambiguities in such wording are generally construed against the drafter and in favor of the insured.

The insurer's right, after paying a claim, to pursue the party that caused the loss and recover those payments. The insured must not impair this right, for example by signing a release.

An accident, or continuous or repeated exposure to harmful conditions, that causes injury or damage during the policy period. Liability policies key coverage to the occurrence, not to when suit is filed.

The specific cause of a loss, such as fire, windstorm, theft, or vandalism. Policies insure against named perils or, in open-peril forms, all risks except those expressly excluded.

A condition that increases the likelihood or severity of a loss, such as faulty wiring, an unsupported roof, or an unattended stove. Hazards affect underwriting and occasionally coverage conditions.

The amount of each loss the insured absorbs before the insurer pays. It applies per occurrence or per policy period as the policy states and reduces the payment rather than the limit.

Temporary evidence of insurance that provides coverage before the policy is issued. It is subject to the same terms and conditions that will appear in the final policy.

A written amendment attached to a policy that adds, removes, or changes coverage. Endorsements control over conflicting printed policy language and must be read together with the base form.

A policy provision that removes specified losses from coverage, such as earth movement, faulty workmanship, or intentional acts. The insurer generally bears the burden of proving an exclusion applies.

A property provision requiring the insured to carry insurance equal to a stated percentage of the property's value. If that amount is not carried, recovery is reduced proportionally even when the loss is under the limit.

Coverage for the extra cost of temporary housing, meals, and related necessities when a covered loss makes the home uninhabitable, usually subject to a time limit or a percentage of Coverage A.

Coverage for the extra cost of repairing or rebuilding to current building codes, plus the lost value of the undamaged portion that must be demolished to comply with code enforcement.

Coverage for lost net income and continuing normal expenses while a business is shut down by a covered loss, typically including a waiting period for civil authority actions.

A policy covering third-party bodily injury and property damage arising from premises, operations, and products, plus personal and advertising injury and the cost of defending covered suits.

Liability for injury or damage occurring on property the insured owns, occupies, or controls, based on the duty owed to invitees, licensees, and trespassers under the applicable standard of care.

Liability coverage triggered by a claim made or reported during the policy period, often limited by a retroactive date. It differs from occurrence coverage, which follows the date of injury.

Coverage for injuries caused by a driver who carries no liability insurance or by a hit-and-run vehicle. Maryland requires insurers to offer it at limits equal to the policy's liability limits.

Maryland's rule that a claimant whose own negligence contributed to the injury recovers nothing, even if the other party was largely at fault. It is stricter than comparative-fault rules used elsewhere.

A formal sworn statement the insured submits showing the amount claimed, the date and cause of loss, and supporting documentation. Policies set a deadline, commonly 60 days after the insurer's request.

A policy condition allowing the insurer to question the insured under oath about the loss, the damaged property, and the claim. An unjustified refusal to submit can bar recovery.

Written notice that the insurer will investigate or defend a claim while leaving open whether coverage applies, protecting it from waiving defenses such as late notice or a policy exclusion.

An insurer's unreasonable or dishonest handling of a claim, such as unexplained delay, an offer unsupported by the investigation, or refusal to communicate. Maryland regulates specific conduct by statute.

A policy process for resolving disagreements about the amount of loss, not coverage, in which each side selects a competent appraiser and the two appraisers choose an umpire to break ties.

The value of damaged property at the time of loss, commonly replacement cost minus depreciation. Policies may define it differently, so the policy wording and Maryland practice control the calculation.

What it costs today to repair or rebuild with materials of like kind and quality, without deducting depreciation. Many policies require the insured to complete repairs before the full amount is paid.

The reduction in value caused by age, wear, obsolescence, or prior condition. Adjusters apply it to reach actual cash value and should document the method and useful-life assumptions used.

A detailed inventory of what was damaged and what is required to repair or replace it, including quantities, materials, and labor. It is the foundation for the repair estimate and negotiation.

The determination of which event produced the damage, critical when a covered peril and an excluded peril both contributed, as with wind-driven rain entering through an opening in the roof.

An improvement that leaves property more valuable than before the loss, such as upgrading to a code-compliant roof. Insurers may deduct the added value from the claim payment.

Damaged property that retains market or scrap value. The insurer may take possession and sell it to offset the payment, or let the insured keep it with a corresponding deduction.

The state agency that regulates insurers, producers, and public adjusters, issues licenses, reviews rates and policy forms, and investigates consumer complaints about claims handling and market conduct.

A statutory list of prohibited insurer conduct, including misrepresenting policy provisions, failing to investigate promptly, and offering substantially less than a reasonable investigation would support.

A residual market association that offers basic property insurance to owners who cannot obtain coverage in the voluntary market, with participating insurers sharing the results.

The credential the Maryland Insurance Administration issues to a person who, for compensation, prepares, presents, or negotiates a claim on behalf of an insured rather than an insurer.

A written agreement required before a public adjuster works a claim. It must state the services, the compensation, and the insured's right to cancel within the period Maryland law allows.

The statutory limit on what a public adjuster may charge for handling a claim, calculated on the amount recovered and stated in the written contract before work begins.

A public adjuster's obligation to act in the insured's interest, account for claim funds properly, avoid self-dealing, and disclose conflicts such as referral fees or an interest in the repair contractor.

Contacting a claimant to offer public adjusting services. Maryland restricts how and when this may occur, including limits on misleading statements about insurer affiliation or the adjuster's authority.