Roof insurance claim glossary

The words adjusters, estimates and policies use, in plain English.

Actual cash value (ACV): The value of damaged property at the time of loss, usually calculated as replacement cost minus depreciation. On a roof claim with replacement cost coverage, ACV is normally the first payment you receive, before the work is done. Some policies settle roofs at ACV permanently, so there is no second payment. See ACV vs RCV on roof claims.
Appraisal: A policy process for resolving disagreements about the amount of a loss, not about whether it is covered. In the standard homeowners form, each side picks an appraiser, the appraisers choose an umpire, and an agreement signed by any two sets the amount. See the appraisal clause on roof claims.
Assignment of benefits (AOB): A document that transfers your right to collect insurance money for a loss to someone else, usually your contractor. Since 2025, Georgia law restricts contractors from taking assignments of insurance proceeds within one year of a Governor-declared natural disaster. See assignment of benefits for Georgia roof claims.
Bad faith: In Georgia insurance law, an insurer's refusal to pay a covered loss without reasonable grounds. Under O.C.G.A. 33-4-6, a bad faith refusal to pay within 60 days of a demand can add a penalty of up to 50 percent of the insurer's liability or $5,000, whichever is greater, plus attorney's fees. See bad faith and roof claims in Georgia.
C.L.U.E. report: A Comprehensive Loss Underwriting Exchange report, a consumer report kept by LexisNexis that lists property and auto insurance claims. According to the Consumer Financial Protection Bureau, it holds up to seven years of claims history and you can request one free report every 12 months. Insurers use it when pricing and underwriting policies. See whether a roof claim raises your premium.
Cosmetic damage exclusion: A policy endorsement that excludes hail or wind damage that changes appearance but does not affect the roof's ability to keep water out, most often dents in metal roofing. Its definition of cosmetic controls what is paid, so read it carefully. See cosmetic damage exclusions.
Creased shingle: A shingle that wind lifted and folded back, leaving a horizontal crease across the tab. The crease breaks the seal and weakens the shingle, so it tends to lift again and eventually tear off. Adjusters usually treat creasing as functional wind damage. See wind damage roof claims.
Date of loss: The date the damage happened, such as the day a hailstorm hit. It ties the damage to a specific event, and policy deadlines such as the time to file suit are usually measured from it. See why the date of loss matters.
Decking: The plywood or OSB sheathing nailed to the rafters that the roof covering is fastened to. Rotten, delaminated or broken decking found during tear-off is usually replaced by the sheet and often added to a claim by supplement.
Deductible: The amount of a covered loss you pay before the insurer pays anything, subtracted from the claim payment. Many Georgia homeowners policies carry a separate deductible for wind and hail. Georgia law prohibits contractors from paying, waiving or rebating your deductible.
Depreciation: The reduction an adjuster applies to replacement cost to account for age, wear and remaining life. On a roof, it is usually based on the age of the shingles compared with their expected life. Depreciation is subtracted to arrive at actual cash value.
Desk adjuster: An insurance adjuster who handles a claim from an office, reviewing photos, measurements and reports gathered by others and writing or approving the estimate. Desk adjusters often work with ladder assist technicians or drone images instead of visiting the roof.
Drip edge: A metal flashing installed along the eaves and rakes that directs water away from the fascia and protects the deck edge. The International Residential Code requires drip edge on asphalt shingle roofs, so it often appears as a code item on claims.
Dwelling coverage (Coverage A): The part of a homeowners policy that covers the house itself and structures attached to it, including the roof. Its limit should reflect the cost to rebuild, not the market value of the home. Percentage deductibles are calculated from this limit.
Endorsement: A form added to an insurance policy that changes its coverage, such as a roof payment schedule or a cosmetic damage exclusion. Endorsements are listed by form number on the declarations page. The same word also describes signing the back of a check, which every named payee must do.
Field adjuster: An adjuster who visits the property in person to inspect damage, take photos and measurements, and often write the estimate. After large storms, insurers bring in additional field adjusters to handle the volume. See what roof adjusters look for.
Functional damage: Damage that reduces a roof's ability to shed water or shortens its expected life, such as fractured shingle mats, punctures or creased tabs. It is contrasted with cosmetic damage, which affects only appearance. Many policies and adjusters draw the coverage line between the two.
Granule loss: The loss of the mineral granules that protect asphalt shingles from sunlight. Hail knocks granules off in distinct, often circular spots, while age causes gradual, even loss across the roof, which is treated as wear and tear. See wear and tear vs hail damage.
Hail bruise: A spot where a hailstone has fractured the shingle mat or crushed the asphalt beneath the granules, often felt as a soft spot when pressed. Bruises may not be obvious from the ground but shorten the shingle's life and can let water in over time.
High roof charge: An added labor charge for roofs two or more stories above the ground, reflecting the extra time to move materials and debris and set up safety equipment. It is separate from the steep charge, and a roof can qualify for both.
HO-3: The most common homeowners policy form, called the special form. It covers the house and other structures against open perils, meaning any cause not excluded, and covers personal property against a list of named perils. Wear and tear, deterioration and faulty maintenance are excluded.
HO-5: A broader homeowners form, sometimes called the comprehensive form, that provides open perils coverage for both the dwelling and personal property. It generally costs more than an HO-3. For roof damage the practical difference is usually small, since both cover the dwelling on an open perils basis.
Ice and water barrier: A self adhering waterproof membrane installed under shingles in leak prone areas such as valleys, eaves and around chimneys and vents. The International Residential Code requires an ice barrier at the eaves in areas with a history of ice dams; elsewhere it is commonly used in valleys and around penetrations.
Independent adjuster: A licensed adjuster who is not an employee of the insurer but is hired by it to handle claims, often during catastrophes. Despite the name, an independent adjuster works on behalf of the insurance company. Georgia licenses independent and public adjusters separately and bars one adjuster from representing both sides of the same claim.
Ladder assist: A third party inspector hired by an insurer to climb the roof, photograph damage, take measurements and sometimes mark test squares. The ladder assist usually does not decide coverage; a desk or field adjuster reviews the findings and writes the estimate.
Line item: A single entry in an insurance estimate describing one task or material, with a quantity, a unit such as squares or linear feet, and a price. Examples include removing shingles, installing drip edge and replacing a pipe jack. Comparing line items is the fastest way to find what an estimate left out.
Loss of use (Coverage D): Coverage for additional living expenses, such as a hotel and extra meal costs, when a covered loss makes the home unlivable, plus lost rental income in some cases. Most roof claims do not trigger it, but major leaks or tree damage can.
Matching: The question of whether an insurer must pay to replace undamaged materials so repairs reasonably match the rest of the roof in color and style. It comes up when shingles are discontinued or weathered. The answer depends on policy wording and state law. See partial roof replacement and matching.
Mitigation: The steps a homeowner takes to prevent further damage after a loss, such as tarping a damaged roof or drying out wet materials. Homeowners policies require reasonable mitigation and normally pay its reasonable cost as part of the claim. Keep receipts and before and after photos. See emergency tarping and your duty to mitigate.
Mortgagee clause: The policy condition that protects your lender. Under the standard homeowners form, payments for the dwelling are made to the mortgagee and you as interests appear, which is why both names appear on the check. See the mortgage company on your insurance check.
Named storm: A tropical storm or hurricane that has been given a name by the National Hurricane Center. Some policies, mostly near the coast, carry a separate and often higher deductible for named storm damage. Check your declarations page to see whether yours does.
Ordinance or law coverage: Coverage for the extra cost of bringing repairs up to current building codes, such as code required drip edge or ice barrier. The sample HO-3 form allows up to 10 percent of the Coverage A limit for these increased costs; your policy may differ. See code upgrades and ordinance or law coverage.
Other structures (Coverage B): Coverage for structures on the property separated from the house by clear space, such as detached garages, sheds and fences. Its limit is often set at about 10 percent of Coverage A. A storm that damages the house roof may also damage a detached garage roof, which falls here.
Overhead and profit (O&P): An allowance added to an estimate to pay a general contractor for coordinating the job and earning a reasonable margin, often calculated as 10 percent overhead plus 10 percent profit. Insurers commonly include it when a loss requires several trades to be coordinated. Whether it is owed on a roof only job is a frequent point of dispute. See overhead and profit on roof claims.
Percentage deductible: A deductible stated as a percentage of the dwelling (Coverage A) limit rather than a flat dollar amount, often applied only to wind and hail losses. A 2 percent deductible on a home insured for $300,000 is $6,000. See wind and hail percentage deductibles.
Peril: A cause of loss, such as fire, windstorm, hail or a falling object. Named perils policies cover only the causes listed; open perils coverage, used for the dwelling in an HO-3, covers any cause not specifically excluded. See what homeowners insurance covers on a roof.
Proof of loss: A signed, sworn statement of the amount claimed, the cause and date of loss, and other details the insurer requests. The standard homeowners form requires it within 60 days after the insurer asks for it. Many routine roof claims never require one, but a request should never be ignored.
Public adjuster: An adjuster licensed by the Georgia Insurance Commissioner to represent the policyholder, not the insurer, in a claim. Georgia law requires an approved written contract, gives you three business days to rescind it and caps the fee at 33.3 percent of the settlement. See public adjuster vs roofer in Georgia.
Recoverable depreciation: The portion of depreciation an insurer withholds at first but pays once repairs or replacement are completed and documented, usually with a final invoice. It is what turns an ACV payment into a full replacement cost payment. Policies set conditions and time limits for collecting it. See how recoverable depreciation works.
Replacement cost value (RCV): The cost to repair or replace damaged property with materials of like kind and quality at current prices, without subtracting depreciation. It is the top line on most insurance roof estimates. Under replacement cost coverage, insurers typically pay the full RCV, minus the deductible, only after the work is completed.
Reservation of rights: A letter in which an insurer says it will keep investigating or handling a claim while reserving its right to deny coverage later. It often appears when there are questions about late notice, the cause of damage or policy conditions. Receiving one is a good time to make sure your documentation is complete and to consider legal advice.
Ridge cap: Specially shaped shingles installed over the ridges and hips of a roof to cover the joint where two slopes meet. Estimates list it separately from field shingles, usually by the linear foot.
Roof payment schedule: An endorsement that pays a declining percentage of the roof estimate based on the roof's age and material, instead of full replacement cost. An older roof may be paid at a fraction of the cost to replace it. See roof payment schedule endorsements.
Scope of loss: A written description of all damage to be repaired and the work needed to repair it, including quantities and materials. The adjuster's scope becomes the basis of the insurance estimate. Contractors with a licensed adjuster on staff, such as Robust Roofing, write their own scope in the same format so the two can be compared line by line.
Square: The roofing unit of measure equal to 100 square feet of roof surface. Shingles, underlayment and tear-off are priced per square in most estimates. The estimate's shingle quantity is the measured area plus a waste allowance, so it should always be larger than the roof area itself.
Starter strip: The first course of shingles installed along the eaves, and often the rakes, beneath the first full row. It provides a sealant line that holds the edge of the first course down in wind. Shingle manufacturers call for it, and it is commonly missed on insurance estimates.
Steep charge: An added labor charge for roofs too steep to walk normally, because crews must work more slowly and use more safety equipment. In Xactimate, steep charges start at a 7/12 pitch and increase in steps for steeper roofs.
Supplement: A request to add items or quantities to an approved insurance estimate, supported by photos, measurements or code references. Supplements are common when tear-off reveals damaged decking or when the original estimate missed required components. They are submitted for review, not automatically paid. See roof supplements explained.
Tear-off: Removal of the existing roof covering down to the decking before new roofing is installed. Estimates price it by the square and usually list each additional layer separately. A full tear-off lets the crew find and replace damaged decking.
Test square: A 10 foot by 10 foot area marked on a roof slope where an inspector counts hail impacts to estimate damage across that slope. Many insurers use an internal count per test square to decide between repair and replacement. See test squares and hail damage.
Two-story charge: A common name for the high roof charge applied to roofs on two-story homes. Estimates may also include two-story access charges for gutters, siding or windows. If your home is two stories and the estimate lacks this item, ask why.
Umpire: The third person in an appraisal who settles differences between the two appraisers. In the standard homeowners form, if the appraisers cannot agree on an umpire within 15 days, either side may ask a court to choose one. A decision agreed to by the umpire and one appraiser is binding on the amount of loss.
Waste factor: Extra material added to the measured roof area to cover cuts at hips, valleys, rakes and starter courses. It is often around 10 percent on simple gable roofs and higher on cut up hip roofs with many valleys. Too little waste on an estimate leaves the job short of shingles.
Xactimate: Estimating software widely used by insurers, adjusters and restoration contractors to price property damage using regional price lists that are updated over time. Each repair appears as a coded line item with a quantity and unit price. See how to read an Xactimate roof estimate.