Third-Party Claim
A claim made by someone else against you, which your liability coverage may defend and pay if covered.
Subrogation
The insurer’s right to recover claim costs from the responsible party after paying a covered loss.
Settlement
The final payment or resolution of a claim based on coverage and the amount of loss.
Salvage
Property that remains after a loss and may have value that can affect settlement.
Roofing Depreciation
A depreciation method that can reduce claim payments for older roofs depending on policy terms and state rules.
Reservation of Rights
A notice that the insurer may provide a defense while reserving the right to deny coverage later based on policy terms.
Replacement Cost Value (RCV)
The cost to repair or replace with similar materials and quality without subtracting depreciation, subject to policy terms.
Proof of Loss
A statement you provide to document the amount and details of a claim.
Loss
Damage, injury, or theft that may be covered under the policy.
Functional Replacement Cost
A settlement method that pays to repair or replace with functionally equivalent materials, which may differ from original materials.