Total Loss Determination

More claims & insurance terms

• Temporary Repairs

  Work done right after a loss to stop more damage, such as tarps, board-up, or a dry-in, before the permanent repair is approved. Policies generally require the owner to prevent further damage, and reasonable emergency costs are usually reimbursable. Photograph and receipt the work, since carriers often pay it separately.

• Third-Party Administrator

  A company hired to run claim handling for a carrier or an employer, such as a warranty program or a managed repair network. The person reviewing your supplement may work for the administrator, not the carrier on the policy, and their guidelines can differ. Ask who actually has authority to approve the added work.

• Umbrella Policy

  An umbrella policy is extra liability coverage that sits above your general liability and auto limits and pays after those limits are used up. Contractors should know an umbrella usually covers liability claims, not damage to the work itself, and carriers may require proof of it before they sign a contract.

• Umpire

  An umpire is the neutral third party chosen when you and the insurer each pick an appraiser and those two cannot agree. The umpire decides the disputed amount with them, and because the choice is usually made by the two appraisers or a court, agree on who picks and who pays before you start.

• Underpayment

  An underpayment is a claim payment that covers less than the scope of work you can document, whether from missed line items, wrong quantities or a pricing difference. The fix is evidence: photos, measurements and code or manufacturer requirements tied to specific line items, then a written request for the difference.

• Valued Policy Law

  A valued policy law is a state rule that, in a total loss, requires the insurer to pay the policy limit for the insured structure instead of the actual cash value. Only some states have one, most apply it to a total loss of real property and in many states only to fire losses, and the details differ - so check your state's rule and the policy before you rely on it.

Common questions