Umpire

More claims & insurance terms

• Total Loss Determination

  A decision that repairing the property no longer makes sense, so the claim is settled as a total loss rather than a repair. The threshold differs by policy and by state, so do not assume a fixed percentage. After the declaration, the settlement usually follows the policy limit and coverage form, not the repair estimate.

• 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.

• 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.

• Water Damage

  Water damage is loss caused by water entering where it should not, from a burst supply line, a roof leak or a storm, and it often shows as staining, swelling or soft drywall. Document the source and moisture readings, since carriers generally pay for the resulting damage and drying. Whether the failed pipe or fitting itself is covered turns on the cause and the policy, so read the exclusion before you promise it.

• Water Extraction

  Water extraction is the first step of drying a wet building: pumping and vacuuming standing water before air movers and dehumidifiers run. For a claim, log time on site, equipment used and daily moisture readings, because carriers want proof the drying was needed and how long it took.

Common questions