OK Public Adjuster key terms

A valuation method that pays replacement cost minus depreciation, reflecting what the damaged item was worth just before the loss. Policies may define it differently, so the form's wording controls.

The amount needed to repair or rebuild with materials of like kind and quality at current prices, without deducting for depreciation. Many policies cap the payout at the limit of insurance.

A reduction in value from age, wear and tear, or obsolescence. Insurers subtract it from replacement cost to reach actual cash value and may withhold it until repairs are completed.

A property policy provision requiring the insured to carry insurance equal to a stated percentage of the property's value. A penalty applies to partial losses when the limit falls short of that requirement.

The reduced settlement that results when the limit of insurance is below the coinsurance requirement. The loss payment is multiplied by the ratio of carried insurance to the required amount.

An optional arrangement in which the insurer waives coinsurance because the limit was agreed to represent full value. It is common for higher-value or hard-to-value property.

The amount of each loss the insured must bear before the insurer pays. It may be a flat dollar figure or a percentage of the dwelling limit, and some causes of loss carry separate deductibles.

A separate, often percentage-based deductible that applies to wind or hail damage in place of the standard deductible. It is frequently triggered by a named storm and can substantially reduce the payment.

A cause of loss that must be specifically listed in the policy for coverage to apply. Damage from an unlisted cause is not covered under a named-peril form.

A coverage approach that insures risks of direct physical loss unless the cause is specifically excluded. The burden shifts to the insurer to show an exclusion applies rather than the insured proving a listed peril.

A policy provision that removes specified causes of loss, property, or situations from coverage. Common examples include earth movement, flood, ordinance or law, and intentional loss.

A situation where a covered and an excluded cause combine to produce one loss. Courts and policy language differ on whether the entire loss is covered, excluded, or divided.

Policy language stating that loss caused by an excluded event is excluded even if another covered event also contributed. It is commonly attached to flood and earth movement exclusions.

An endorsement or policy provision that pays for the increased cost of repairing or rebuilding to comply with current building codes. Without it, enforcement-related costs are typically excluded.

A written amendment attached to a policy that adds, removes, or changes coverage. It controls over conflicting printed policy language and must be read as part of the whole contract.

The policy section that identifies the insured, the property, the policy period, the limits of insurance, and the deductibles. It is the starting point for determining what is insured and for how much.

The base policy form containing the insuring agreement, definitions, exclusions, and conditions. Endorsements modify its terms, and together they form the complete contract.

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

A property form for dwellings that are not owner-occupied or that do not qualify for a homeowners policy. The numbered forms offer basic, broad, and special (open peril) coverage levels respectively.

A package policy for owner-occupied residences combining property and liability coverage. The HO-3 insures the dwelling on an open peril basis and personal property on a named peril basis; the HO-5 uses open peril for both.

The homeowners coverage that insures the residence itself and structures attached to it, such as an attached garage. The limit is shown on the declarations page.

Homeowners coverage for structures on the residence premises that are separated from the dwelling, such as detached garages, fences, and sheds. The limit is typically a percentage of Coverage A.

Homeowners coverage for the insured's personal belongings, both on and away from the residence premises. Special dollar limits apply to categories such as jewelry, silverware, money, and firearms.

Homeowners coverage that pays additional living expenses when the residence is uninhabitable because of a covered loss, or fair rental value if the home was rented. It applies for a stated time period.

Commercial coverage that replaces net income and continuing normal operating expenses during the period of restoration after a covered loss. It may include extra expense to avoid or minimize the shutdown.

The time beginning with the date of direct physical damage and ending when the property should be repaired, rebuilt, or replaced with reasonable speed. It sets the duration of business income payments.

Coverage for costs the insured reasonably incurs to continue operations during a shutdown, such as temporary space or expedited repairs. It is often insured in addition to business income.

A single limit of insurance that applies to two or more items or locations, rather than a separate limit for each. It offers flexibility when values shift among covered properties.

Coverage written with a separate limit for each described property or location. It contrasts with blanket coverage, where one limit applies across multiple items.

A signed statement the insured submits to the insurer detailing the amount claimed and supporting facts. Policies set a deadline and may require the form the insurer provides.

The insured's prompt notification to the insurer that a loss has occurred. Delay can prejudice the claim, so policies state a time frame and a method for reporting.

The policy conditions the insured must satisfy after a loss, such as giving notice, protecting property from further damage, cooperating, and submitting records. Failure can reduce or bar recovery.

Property that remains after a loss and retains some value. Insurers may take salvage, pay the insured for it, or allow the insured to keep it with a deduction from the claim.

The insurer's right to pursue a responsible third party for a loss it has paid, standing in the insured's shoes. The insured must not impair that right, for example by releasing the third party.

A policy dispute-resolution process in which each side selects a competent appraiser and the appraisers choose an umpire. A written agreement by any two sets the amount of loss.

The neutral third person chosen by the parties' appraisers when they cannot agree on the amount of loss. An agreement by the umpire and one appraiser binds the amount.

A person licensed to represent an insured in negotiating a first-party property claim for compensation, typically paid a percentage of the settlement. The adjuster owes duties to the insured, not the insurer.

An adjuster employed directly by an insurer to handle claims on its behalf. The role is distinct from independent and public adjusters in who pays and who is represented.

An adjuster who contracts with insurers, often on a fee-per-claim basis, to handle claims. The adjuster represents the insurer even though not a direct employee.