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Hail and roof claims course glossary: 69 terms

Every trade word from the course in plain English, A to Z. Each links to the lesson that teaches it.

ACDEFHMNPRSTU

A

Actual cash value (ACV)
Replacement cost minus depreciation: roughly what the worn property was worth. How a homeowner's policy pays for a roof
Adjuster
The person who inspects the damage for the insurer and works out what to pay. The first 72 hours after a hail storm
Adjuster
The person who inspects damage and works out what a claim should pay, usually working for the insurer. Filing the claim and the adjuster visit
Appraisal clause
A policy term that may let both sides use independent valuers to settle a dispute about the amount of a loss. When the insurer says no or pays too little
As-is
A sale where the buyer takes the house in its current condition and the seller agrees to no repairs. Selling a hail-damaged house as-is
Assignment of benefits
A paper that hands your right to an insurance payment to someone else. Storm chasers and contractor scams

C

Catastrophic disaster
The kind of event for which Colorado caps a public adjuster's fee at 10 percent of the settlement. When the insurer says no or pays too little
Claim
A request to your insurer to pay for a covered loss. Selling a hail-damaged house as-is
Claim log
Your running written record of every claim contact: date, who, what was said, next step. Filing the claim and the adjuster visit
Claim number
The reference number the insurer gives your claim. Write it on every note and call. The first 72 hours after a hail storm
Closing
The final step where ownership transfers and money changes hands. Selling a hail-damaged house as-is

D

Decking
The wood layer under the shingles that the roof is built on. The first 72 hours after a hail storm
Declarations page
The first page of a policy that lists who is covered, what, for how much and the deductible. The first 72 hours after a hail storm
Declarations page
The summary page of a policy listing coverages, limits and deductibles. How a homeowner's policy pays for a roof
Deductible
The part of a covered loss you pay yourself before insurance pays. How a homeowner's policy pays for a roof
Deductible
The part of a covered loss you pay yourself before the insurance pays the rest. Hiring a roofer the legal way (C.R.S. 6-22)
Deductible
The part of a covered loss you pay yourself. Storm chasers and contractor scams
Deductible
The part of a loss you pay yourself before insurance pays. Selling a hail-damaged house as-is
Denial
The insurer's decision not to pay all or part of a claim. When the insurer says no or pays too little
Deposit
Money paid up front toward a job. Hiring a roofer the legal way (C.R.S. 6-22)
Depreciation
A deduction for the age and wear of the old property. How a homeowner's policy pays for a roof
Direction to pay
A paper that tells your insurer to send claim money to a named person, such as a roofer. Storm chasers and contractor scams
Disclosure
A seller's written statement of known problems with the property. Selling a hail-damaged house as-is

E

Endorsement
An add-on page that changes the policy, such as special roof or hail terms. How a homeowner's policy pays for a roof
Estimate
The insurer's written list of repairs and costs for the claim. Filing the claim and the adjuster visit
Estimate
An itemized price list for the repairs the insurer agrees to cover. When the insurer says no or pays too little

F

First-party claimant
The policyholder asking the insurer to pay benefits owed under their own policy. Filing the claim and the adjuster visit
First-party claimant
The person claiming benefits owed under an insurance policy, usually the policyholder. When the insurer says no or pays too little
Flashing
Thin metal placed around chimneys, vents and roof edges to keep water out. Filing the claim and the adjuster visit

H

Headline price
The advertised or offered sale price before costs and deductions. Selling a hail-damaged house as-is
Held in trust
Money kept for its purpose, not free for the roofer to spend on other things first. Hiring a roofer the legal way (C.R.S. 6-22)
Held in trust
Money kept for its purpose, not free to be spent on other things first. Storm chasers and contractor scams
Holdback
The depreciation the insurer keeps back from the first payment until you repair and send proof. How a homeowner's policy pays for a roof

M

Mitigation
Reasonable, cheap steps to keep damage from getting worse, such as tarping a hole in the roof. The first 72 hours after a hail storm
Mortgage payoff
The loan balance paid to your lender at closing. Selling a hail-damaged house as-is

N

Net proceeds
What you keep after paying the mortgage, repairs, selling costs and fees. Selling a hail-damaged house as-is

P

Percentage deductible
A deductible set as a share of the insured value instead of a flat dollar amount. How a homeowner's policy pays for a roof
Policy
The written contract between you and your insurer. Its wording controls what is covered. The first 72 hours after a hail storm
Proof of loss
A statement or documents showing what was lost and how much. Filing the claim and the adjuster visit
Public adjuster
A licensed person who works for the policyholder, for a fee, on a claim. See lesson hr-06. Filing the claim and the adjuster visit
Public adjuster
A licensed person you hire to help you with an insurance claim. Storm chasers and contractor scams
Public adjuster
A licensed person you hire to prepare and negotiate your claim; they work for you, not the insurer. When the insurer says no or pays too little
Public insurance adjuster
A licensed person you hire to help with your claim; a roofer may not claim to be one. Hiring a roofer the legal way (C.R.S. 6-22)

R

Recoverable depreciation
By Colorado statute, the difference between the cost to replace the property and its actual cash value. You may get it back once the work is done. How a homeowner's policy pays for a roof
Red flag
A warning sign that something may be a scam. Storm chasers and contractor scams
Release
A signed paper that gives up claims; signing one can end the claim. Filing the claim and the adjuster visit
Replacement cost
The cost to replace damaged property with new property of similar kind and quality, with no deduction for age. How a homeowner's policy pays for a roof
Rescind
To cancel a signed contract within a short window the law gives you. The first 72 hours after a hail storm
Rescind
To cancel a contract by giving proper notice, as if you backed out. Hiring a roofer the legal way (C.R.S. 6-22)
Rescission
Cancelling a contract by giving proper notice. Storm chasers and contractor scams
Rescission
Cancelling a contract; with a public adjuster, by written notice mailed within 72 hours after signing. When the insurer says no or pays too little
Residential property
A detached one- or two-family home, or several single-family homes up to three stories with separate exits; new construction is left out. Hiring a roofer the legal way (C.R.S. 6-22)
Retainer
A fee paid up front to hire someone. Storm chasers and contractor scams
Roofing contractor
A company that repairs or replaces roofs. Colorado requires a written, signed contract before roofing work starts. The first 72 hours after a hail storm
Roofing contractor
A person or business that does roofing work on a home for pay. Hiring a roofer the legal way (C.R.S. 6-22)
Roofing work
Building, rebuilding, changing, maintaining or repairing a roof on a home. Hiring a roofer the legal way (C.R.S. 6-22)

S

Scope of work
The list of what work will be done and what materials will be used. Hiring a roofer the legal way (C.R.S. 6-22)
Selling costs
Fees paid to sell, such as agent commissions and closing costs. Selling a hail-damaged house as-is
Square
A roofing measure of 100 square feet of roof surface. Filing the claim and the adjuster visit
Statute of limitations
The legal deadline for starting a lawsuit. How a homeowner's policy pays for a roof
Storm chaser
A contractor who travels to a storm area to find fast work and may leave before problems show. Storm chasers and contractor scams
Supplemental claim
A request for more money because missed damage or new costs were found after the first estimate. When the insurer says no or pays too little
Surety
A bond that backs a contractor's work or promises. Hiring a roofer the legal way (C.R.S. 6-22)
Surety bond
A bond that pays up if a licensed person or contractor causes a loss. Storm chasers and contractor scams
Surety bond
A financial guarantee that can pay people harmed by a licensed person's errors. When the insurer says no or pays too little

T

Temporary repair
A quick fix that protects the house until the real repair is done. It is not the full repair. The first 72 hours after a hail storm

U

Underlayment
The water-resistant layer installed under shingles. Filing the claim and the adjuster visit
Unfair claim settlement practice
Conduct listed in C.R.S. 10-3-1104(1)(h) that an insurer must not do, such as failing to respond reasonably promptly. Filing the claim and the adjuster visit
Unreasonable delay or denial
Holding up or refusing payment of a covered benefit with no reasonable basis. When the insurer says no or pays too little