Underpayment

More claims & insurance terms

• 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.

• 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.

• Water Mitigation Category

  Water mitigation category is the label for how contaminated the water is, usually clean supply-line water, gray water from a fixture, or black water from sewage or ground water. The IICRC water damage standard defines the categories, and the category drives which materials can be dried in place and which must be removed, so document it before work starts.

Common questions