Florida insurance glossary

ACV pays depreciated value at time of loss. RCV pays the cost to repair or replace with new materials, typically with depreciation held back until repairs are completed.

Insurance coverage that pays for the additional cost of bringing a damaged structure up to current building code when repairs are made.

Florida law requires insurers to replace or repair damaged items with materials of like kind and quality when matching items are not reasonably available.

A separate, usually higher deductible that applies to damage caused by a hurricane: typically calculated as a percentage of the dwelling coverage, not a flat dollar amount.

A deductible that applies when a named storm (tropical storm, subtropical storm, or hurricane) causes damage: broader than a hurricane-only deductible.

Coverage that reimburses the reasonable additional costs of living elsewhere while your home is uninhabitable due to a covered loss.

A sworn, notarized statement from the policyholder detailing the loss, the amount claimed, and the circumstances: typically required by policy.

A formal, recorded, sworn question-and-answer session in which the policyholder answers the insurer's questions about a claim under oath.

A letter from the carrier stating that the carrier is investigating or handling the claim but reserves the right to later deny coverage if specific conditions are found.

A coverage cap that applies to a specific category within a broader coverage: smaller than the overall policy limit.

A policy provision requiring the policyholder to insure at least a specified percentage (typically 80%) of the property's replacement value, or face a penalty at claim time.

The difference between ACV and RCV that the carrier initially withholds from a claim payment, releasing it only after repairs are completed and documented.

Florida premium discounts awarded to homeowners who document qualifying wind-resistant construction features: hip roof, secondary water resistance, impact-rated windows, etc.

A time period after a covered loss begins during which business-interruption coverage does not yet apply: typically 72 hours.

The time during which business-interruption coverage applies: from the end of the waiting period until the business is (or reasonably should be) restored.

A business-interruption extension that pays for losses caused by civil authority action that prohibits access to the insured premises: typically for a limited time.

A policy provision allowing either party to demand a three-party appraisal when the policyholder and the carrier disagree on the amount of loss.

The neutral third decision-maker in an appraisal process: selected by the two appraisers (or by a court) to decide amount-of-loss when the appraisers cannot agree.

The industry-standard insurance claims estimating software: used by carriers, public adjusters, and contractors to produce line-item repair cost estimates.

Policy language that distinguishes sudden water or other damage (typically covered) from gradual or long-term damage (typically excluded).