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 the increase in cost of living when a covered loss makes your home uninhabitable.

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

The written decision of an appraisal panel resolving a dispute over amount of loss: generally binding on both parties.

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.

A carrier's unreasonable failure to settle a claim that should be paid: supporting a statutory cause of action under Fla. Stat. 624.155.

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

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.

Statutory notice under Fla. Stat. 624.155 required before a Florida first-party bad-faith claim can proceed.

A policy condition penalizing underinsurance: typically requiring the insured to carry at least 80% of replacement cost.

A policy requirement the insured must satisfy before the carrier owes performance: e.g., prompt notice or sworn proof of loss.

The front page of a property policy summarizing named insureds, coverage limits, deductibles, and endorsements.

The reduction in value from age, wear, and obsolescence: subtracted from Replacement Cost to yield Actual Cash Value.

A policyholder-signed authorization directing the carrier to pay a contractor directly without assigning underlying claim rights. Distinct from AOB and the Florida limitations on it.

A policy document that modifies the base policy by adding, removing, or changing coverage. Endorsements control coverage on Florida claims as much as the base form does, sometimes more.

A sworn statement the carrier is contractually entitled to take from the insured during claim investigation.

A policy provision removing specific causes of loss, property, or circumstances from coverage. Florida exclusion language is heavily litigated; how it's read decides many denied claims.

The statutory entity that takes over covered Florida property claims when a carrier becomes insolvent. FIGA pays claims subject to a $300,000 cap and other policy-specific limits.

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, typically higher deductible on Florida property policies that applies only to losses caused by a named hurricane. Often expressed as a percentage of dwelling coverage rather than a flat amount.

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

The policy provision specifying how a claim will be valued: ACV, RCV, functional replacement, or other basis.

The policy and statutory obligation to repair damaged items so that repairs match adjoining undamaged items.

The insured's policy duty to take reasonable steps to protect property from further damage after a loss. Failure to mitigate is a frequent Florida carrier defense; reasonable mitigation costs are reimbursable.

A coverage form that pays only for causes of loss specifically listed in the policy, contrasted with open-peril (all-risk) coverage. Most Florida personal-property forms are named-perils.

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

The carrier's decision not to offer a new policy at the end of the current term, distinct from cancellation mid-term. Florida law requires advance notice and limits the grounds carriers can use.

A coverage form covering any cause of loss that is not specifically excluded by the policy. The carrier bears the burden of proving an exclusion applies; on Florida HO-3 forms, dwelling coverage is typically open-peril.

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

The maximum amount the carrier will pay under each coverage part: dwelling, other structures, personal property, loss of use, and liability. Florida limits also include sublimits and per-claim caps that apply before the main limit.

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

A Florida-licensed professional (3-20 license) retained by and accountable to the insured to handle a property insurance claim.

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

The carrier's written notice that it will investigate or handle a Florida claim without waiving any policy defenses. ROR letters often signal a coverage dispute is forming and warrant a careful policy review.

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

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

A claim for additional amounts on a Florida loss previously reported, distinct from a reopened claim. Florida Statute 627.70132 sets a hard reporting deadline that controls eligibility.

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

The industry-standard claim estimating software used by virtually every Florida carrier and most public adjusters. Pricing data, scope notes, and depreciation tables drive what the carrier offers.