NH Public Adjuster key terms

The value of damaged property calculated as replacement cost minus depreciation, or as fair market value, depending on the policy's valuation clause. It is the baseline settlement method in most New Hampshire homeowner policies.

The amount needed to repair or rebuild damaged property with new materials of like kind and quality at current prices, without deducting for depreciation. Many policies require the insured to actually repair or replace before paying this amount.

The reduction in a property's value from age, wear, use, or obsolescence. Adjusters apply it to replacement cost to derive actual cash value, and must be able to justify the method and rate used.

A property policy provision requiring the insured to carry insurance equal to a stated percentage of the property's value. If the limit is too low, the insurer reduces the claim payment proportionally to the underinsurance.

The amount of loss the insured must absorb before the insurer pays. It may be a flat dollar amount, a percentage of the dwelling limit, or a separate catastrophe or wind-hail deductible.

The maximum amount an insurer will pay for a covered loss under a given coverage part. Sub-limits may apply to specific property such as jewelry, cash, or detached structures.

A financial stake in property such that the person benefits from its survival and suffers loss from its damage. Coverage is generally void without it, and it must exist at the time of loss.

The core insurance concept that a claim payment should restore the insured to roughly the same financial position as before the loss, neither better nor worse. It explains why depreciation and policy limits exist.

An improvement in the property's condition resulting from repairs that leaves the insured in a better position than before the loss. Insurers may deduct for it, and adjusters should recognize when it is improperly claimed.

The principle that both insurer and insured must deal honestly and disclose material facts. Misrepresentation or concealment can void coverage, and it underpins the adjuster's duty of honesty.

A false statement of fact on an application or claim that would have influenced the insurer's decision to issue coverage or pay a claim. It can justify rescission or denial.

A policy condition voiding coverage when the insured intentionally hides material facts or commits fraud relating to the insurance. It typically allows the insurer to deny the entire claim, not just the false portion.

The person or entity listed on the declarations page as holding the policy. The named insured controls the policy and is the party to whom claim payments are ordinarily made.

A person or entity added to the policy by endorsement who receives coverage but generally lacks the named insured's rights to change or cancel the policy. Common for mortgagees, trusts, and family members.

A provision giving the lender rights in the policy, including notice of cancellation and payment of loss up to its interest. The lender's name appears on the declarations and its interest must be protected in settlements.

The part of the policy showing the named insured, property address, policy period, coverage limits, deductibles, and forms attached. It is the first document an adjuster reviews to establish what is insured.

A distinct section of a policy granting a particular promise of protection, such as Coverage A for the dwelling or Coverage C for personal property. Each part carries its own limits and exclusions.

A written amendment attached to a policy that adds, removes, or changes coverage. Endorsements control over conflicting printed policy language and must be checked before evaluating a claim.

Policy language that removes specified perils, property, or situations from coverage, such as earth movement, flood, or intentional loss. The insurer bears the burden of proving an exclusion applies.

A loss caused by two or more perils acting together, where one is covered and one is excluded. Courts and policy language determine whether the covered portion is payable.

The dominant, efficient cause that sets in motion an unbroken chain of events leading to loss. Adjusters use it to decide which peril actually produced the damage when several are involved.

A specific event or force that causes loss, such as fire, windstorm, or theft. Policies are written as named-peril or open-peril (all-risk) forms, which differ greatly in how claims are evaluated.

Policy language specifying how a covered loss is valued and paid, including whether actual cash value or replacement cost applies and what conditions must be met. It drives the adjuster's damage estimate.

A signed statement, usually on a form the insurer provides, detailing the amount, date, and circumstances of the claim. Policies set a deadline, commonly 60 days after the insurer's request.

A formal, notarized proof of loss document executed under oath. It carries legal weight, so the public adjuster must ensure figures are accurate and supportable before the insured signs.

Policy conditions the insured must satisfy after a loss, such as giving prompt notice, protecting property from further damage, cooperating with investigation, and submitting records. Breach can reduce or bar recovery.

The insured's obligation to inform the insurer of a loss without unreasonable delay. Late notice can prejudice the insurer's investigation and, in New Hampshire, may affect coverage if prejudice results.

A person who, for compensation, acts on behalf of the insured to prepare, present, and negotiate a first-party property claim. The role is distinct from a company or independent adjuster who represents insurers.

An employee of an insurer who investigates and settles claims on the company's behalf. Public adjusters negotiate opposite them, and understanding their authority and process is essential.

An adjuster who is not an insurer employee but is retained by insurers, often on catastrophe assignments, to handle claims. They represent the insurer's interest, not the policyholder's.

A public adjuster's compensation set as a percentage of the claim amount recovered, paid only if the claim is paid. New Hampshire caps the percentage and requires a written contract.

The signed agreement between a public adjuster and the insured setting out services, fee, term, and cancellation rights. It must be in writing and meet New Hampshire disclosure and form requirements.

The legal obligation of a public adjuster to act in the insured's best interest and to handle claim funds honestly. Commingling claim proceeds or taking undisclosed compensation breaches this duty.

A situation in which a public adjuster's personal or financial interest could improperly influence work done for the insured, such as referring repairs to an affiliated contractor. It must be disclosed and avoided.

Statutorily prohibited conduct such as misrepresenting policy provisions, unreasonable delay, failing to investigate, or offering low settlements without explanation. New Hampshire enforces these standards against insurers.

An insurer's unreasonable denial, delay, or undervaluation of a valid claim, or failure to give the insured's interests equal consideration. It can expose the insurer to damages beyond the policy limit.

The license document issued by the New Hampshire Insurance Department permitting an insurer or producer to transact insurance business in the state. Operating without one is unlawful.

The state credential authorizing a person to sell, solicit, or negotiate insurance, including public adjusting where a license is required. It carries renewal, continuing education, and reporting obligations.

The state agency that regulates insurers and producers, licenses adjusters, reviews policy forms and rates, and enforces insurance laws including unfair claim practices.

A regulatory review of an insurer's or adjuster's business practices, including claim handling, rating, and recordkeeping. Findings can lead to fines, restitution, or license action.