What do common roof insurance claim adjuster terms mean?
Short answer. Most roof claim jargon comes down to a few ideas: RCV is the full cost to replace, ACV is that cost minus depreciation, and depreciation is either recoverable after the work is done or non-recoverable. A square is 100 square feet of roof, a test square is a 10 by 10 foot sample for counting hail hits, and a supplement is a request to add items the first estimate missed.
- Date of loss: the date the storm caused the damage.
- RCV (replacement cost value): the cost to replace the damaged roof with materials of like kind and quality today.
- ACV (actual cash value): RCV minus depreciation.
- Recoverable depreciation: the amount held back on a replacement cost policy and paid after the work is complete.
- Non-recoverable depreciation: depreciation you never get back, common with ACV roof endorsements.
- Deductible: your share of the loss, either a flat dollar amount or a percentage of dwelling coverage.
- Square: 100 square feet of roof surface.
- Test square: a 10 by 10 foot sample area used to count hail hits.
- Functional damage: damage that affects the roof's ability to shed water or its expected life.
- Cosmetic damage: damage to appearance only, which some policies exclude.
- Scope: the list of work the estimate covers.
- Line item: one priced task, like tear off, underlayment, drip edge or ridge cap.
- Waste factor: extra material added for cuts at hips, valleys and edges.
- Steep and high charges: extra labor for steep pitches or tall roofs.
- Overhead and profit (O&P): a general contractor's markup, commonly figured as 10 percent each.
- Supplement: a request to add missed or newly discovered items.
- Ordinance or law: coverage for upgrades current building code requires.
- Proof of loss: a sworn statement of the amount claimed, which some insurers require.
- Appraisal: a policy process for settling disagreements about the amount of loss.
- Mitigation: reasonable steps, like tarping, to prevent further damage.
To see these terms in action, read ACV vs RCV on roof claims and how an Xactimate roof estimate is laid out.