Pre-existing damage

More claims & insurance terms

• Policy limits

  The most a policy will pay for a covered loss. On a homeowners policy that is split into Coverage A for the dwelling, Coverage B for other structures, and Coverage C for contents. Limits apply per occurrence or per policy period depending on the form, so check the declarations page before assuming a scope fits.

• Policyholder

  The person or business that owns the insurance policy, and the party the claim is filed on behalf of, not the carrier.

• Preferred vendor program

  An arrangement where an insurer steers work to contractors who agree to its pricing and service standards. Contractors in these programs usually give up some price negotiation, so read the agreement and know what you can still supplement before signing.

• Premium

  What the policyholder pays the insurer for coverage, usually monthly or annually. Contractors should not quote it or adjust a scope to fit it, because the premium reflects the policy's limits and deductible, and the loss is priced from the damage.

• Proof of loss

  The signed statement the policyholder submits to the insurer listing the amount claimed and swearing the loss facts are true. The policy sets the deadline and the carrier supplies the form; state law can change both, so get the specific requirement in writing before signing or filing. An incomplete or amended form can delay payment, so match the numbers to the estimate and keep a dated copy.

• Property damage

  Physical harm to covered structures or belongings caused by a covered event. In a claim it is the trigger for coverage, so the report should tie the damage to the date and cause of loss with photos, and separate storm damage from wear or poor maintenance.

Common questions