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More claims & insurance terms

• Policyholder

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

• Pre-existing damage

  Wear, rot, or failure that existed before the loss date and is not covered by the policy. Adjusters exclude it, so contractors should document the condition at the time of inspection with dated photos and note what the new damage added on top of it.

• 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.

• Proximate cause

  The event the law treats as the direct cause of the damage, even when other conditions contributed. Carriers use it to decide coverage, so document the chain from the storm or event to the damage rather than only the damage itself.

Common questions