Glossary

Insurance, claims, storm and building terms, defined

459 terms · 63 with their own page · numbers and rules cite their published source. Also see the guides and free tools.

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A

ACORDOrganizations: ACORD (Association for Cooperative Operations Research and Development) is a nonprofit standards body owned by the insurance industry. It publishes the data standards and standard forms, such as certificates and evidence of insurance, that insurers, agents and brokers use to exchange policy information.
ACORD 25Coverage: ACORD 25 is the standard certificate of liability insurance, a one-page summary of an insured's liability policies, limits and dates for a third party. It gives the holder no rights; additional insured status comes only from the policy or an endorsement.Source: New York State Department of Financial Services
ACORD 28Coverage: ACORD 28 is the standard form an agent or broker uses to show a lender or other interested party evidence of commercial property insurance. It summarizes limits, deductibles and key terms for information only and does not change the policy.Source: New York State Department of Financial Services, ACORD
Actual cash valueCoverage: Actual cash value (ACV) values damaged property at what it was worth when the loss happened, most often the cost to repair or replace it minus depreciation. Some policies and courts use market value or weigh all relevant evidence instead.
Actual cash value vs replacement costCoverage: Actual cash value (ACV) pays what damaged property was worth when it was damaged, usually its replacement cost minus depreciation. Replacement cost (RC) pays to repair or replace it with materials of like kind and quality, with nothing taken off for depreciation.Read more
ACV paymentClaims: An ACV payment is the first payment on a replacement cost claim: the loss's actual cash value, meaning replacement cost minus depreciation, less the deductible. The withheld depreciation is usually paid once the property is repaired or replaced.
ACV roof endorsementCoverage: An ACV roof endorsement settles roof covering losses at actual cash value, replacement cost minus depreciation, instead of full replacement cost. Because depreciation grows with a roof's age, older roofs receive smaller claim payments under it.
Additional insuredCoverage: An additional insured is a person or organization added to another party's policy at the named insured's request, usually because a contract requires it. With property, a lease often requires the tenant to insure the building and name the owner.
Admitted insurerCoverage: An admitted insurer is licensed by a state's insurance regulator to sell coverage there. Its rates and policy forms follow that state's rules, and the state guaranty fund pays its claims if it becomes insolvent, a protection surplus lines insurers lack.
Admitted vs non-admitted insuranceCoverage: An admitted insurer is licensed in a state, follows its rate and form rules, and is backed by the state guaranty fund. A non-admitted, or surplus lines, insurer is not licensed there and usually covers risks admitted insurers turn down.
Aggregate limitCoverage: An aggregate limit is the most a policy will pay for all covered losses combined during a set period, usually the policy year. A per occurrence limit, by contrast, caps what the policy pays for any one event.
Agreed valueCoverage: Agreed value is a commercial property option in which insurer and insured settle the property's value in advance, so the coinsurance clause does not apply until the option expires. Insurers usually require a signed statement of values to add it.
Agreed value vs stated valueCoverage: Agreed value means the owner and insurer settle a property's value in advance: for vehicles and collectibles it sets the total loss payment, and on commercial property it suspends the coinsurance penalty. Stated value pays the lesser of the stated amount or actual cash value.
Alabama Insurance Underwriting AssociationCoverage: The Alabama Insurance Underwriting Association, known as the Beach Pool, insures homes and some commercial property in the coastal areas of Baldwin and Mobile counties when standard insurers will not. It offers both full property and wind and hail only policies.Source: Alabama Department of Insurance, Code of Alabama (via Justia)
All other perils deductibleCoverage: An all other perils (AOP) deductible applies to losses from any cause that has no separate deductible of its own, such as fire or theft. It is usually a flat dollar amount, while wind, hail and hurricane deductibles are often a percentage of insured value.
AM Best ratingCoverage: An AM Best rating is AM Best's opinion of an insurer's financial strength and its ability to pay claims and meet other policy obligations, graded from A++ (Superior) to D (Poor). It rates the insurer's finances, not its claim service.Source: AM Best
Anti-concurrent causation clauseCoverage: An anti-concurrent causation clause is wording that excludes a loss caused by an excluded peril even when a covered peril also helped cause it, at the same time or in any order. It usually applies to exclusions such as flood and earth movement.
Apartment building insuranceCoverage: Apartment building insurance is the coverage an owner carries on a rental apartment building: property coverage for the buildings, often lost rental income after covered damage, and liability for injuries to tenants and visitors. Lenders usually require it.
Appraisal clauseClaims: An appraisal clause is a property policy condition that lets the insurer or the insured demand that a disagreement over property value or the amount of loss be decided by two appraisers and an umpire, whose decision is binding.Read more
ASCE 7Roofing and building: ASCE/SEI 7 is the American Society of Civil Engineers standard for minimum design loads on buildings, including wind, snow, flood and earthquake loads. Building codes such as the International Building Code adopt it by reference, so the edition in force sets design wind loads.Source: Federal Emergency Management Agency
Asset managerRisk: In real estate, an asset manager runs a property as an investment for its owner, making the decisions that drive its financial results from purchase to sale. Asset managers usually hire and oversee the property management company that handles daily operations.
Assignment of benefitsClaims: An assignment of benefits (AOB) is an agreement that transfers a policyholder's right to claim and receive insurance benefits for a loss to another party, usually a contractor doing repair, restoration or mitigation work, whom the insurer then pays directly. Some states restrict them.
ASTM E2018Inspection: ASTM E2018 is the ASTM International standard guide for baseline property condition assessments of commercial real estate. It describes the walk-through survey, document review, interviews and repair cost opinions that make up a property condition report. Following it is voluntary.Source: ASTM International
ASTM InternationalOrganizations: ASTM International is a standards organization whose volunteer members write and update technical standards for materials, products and processes. In commercial real estate, its E2018 guide sets the baseline process for property condition assessments (PCAs).Source: ASTM International
Average annual lossRisk: Average annual loss (AAL) is the loss a property or portfolio can expect from a hazard in an average year, found by averaging a catastrophe model's losses across all the simulated years in its event set.

B

Base flood elevationHail and wind: Base flood elevation (BFE) is the height floodwater is expected to reach in a flood with a 1% chance of being equaled or exceeded in any year. FEMA flood maps show it for high-risk zones, and building and flood insurance rules measure from it.Source: FEMA
Baseball-size hailHail and wind: Baseball-size hail is hail about 2.75 inches (70 mm) across. At this size the National Weather Service tags a severe thunderstorm warning as destructive, which sends an alert to phones in the warned area.Source: NOAA National Weather Service, NOAA National Weather Service
Baseline condition reportInspection: A baseline condition report records a building's physical condition at one point in time, in writing and photos, so later inspections, such as one after a storm, can show what changed. It reflects only what was observed on the day it was done.
Basic form coverageCoverage: Basic form coverage is the narrowest standard set of covered causes of loss in property insurance. It covers only the perils it names, such as fire, lightning, explosion, windstorm, hail, smoke, vandalism and sprinkler leakage. ISO's commercial version is form CP 10 10.Source: IRMI
Beaufort scaleHail and wind: The Beaufort scale rates wind from force 0 (calm) to 12 (hurricane, 64 knots or more) by what the wind visibly does. Slight structural damage begins at force 9 (41 to 47 knots).Source: NOAA Storm Prediction Center
Blanket insuranceCoverage: Blanket insurance covers two or more items, such as several buildings or a building and its contents, under one shared limit instead of a separate limit for each. A margin clause, if attached, caps what any one location can collect.Read more
Blanket vs scheduled limitsCoverage: A blanket limit is one amount of insurance that applies across several locations or kinds of property. Scheduled, or specific, limits set a separate amount for each kind of property at each location.
Board-upClaims: A board-up is covering broken windows, doors or other openings, usually with plywood, after a storm or break-in to keep out weather and intruders. It is a temporary repair that helps meet a policy's duty to protect property from further damage.
Bow echoHail and wind: A bow echo is a line or cluster of storms that bends outward into a bow shape on radar as strong winds push its center ahead. Damaging straight-line winds often occur near the crest, and tornadoes can form near its ends.
Broad form coverageCoverage: Broad form coverage is a named perils property form. It covers the basic causes of loss, such as fire, lightning, windstorm and hail, plus a few more, such as falling objects, weight of snow or ice, water leaking from appliances and some collapse.
Broker of record letterCoverage: A broker of record letter is a signed letter from an insured telling an insurer which broker or agent it has chosen to handle a policy or account, often replacing the current one.
Builders risk insuranceCoverage: Builders risk insurance covers a building while it is under construction, along with building materials, fixtures and temporary structures such as scaffolding on the site. It is written for the construction period rather than for a finished, occupied building.
Building and personal property coverage formCoverage: The building and personal property coverage form (ISO CP 00 10) is the main commercial property form. It covers buildings, business personal property and others' property in the insured's care and sets how losses are valued; a separate causes of loss form sets the perils.Source: IRMI
Building code upgradeRoofing and building: A building code upgrade is work current codes require when damaged property is repaired or rebuilt, such as bringing a whole roof up to code. Standard property policies pay little or none of this added cost; ordinance or law coverage adds it.
Building envelopeRoofing and building: The building envelope is the roof, exterior walls, windows, doors and the flashing and seals between them that separate a building's interior from the weather. A break anywhere in it can let wind and water inside.
Built-up roofRoofing and building: A built-up roof (BUR) is a low-slope roof membrane made of several plies of felt, fabric or mat laid in alternating layers with bitumen. Its top is surfaced with aggregate, a coating or a granule-surfaced cap sheet.
Business continuity planRisk: A business continuity plan (BCP) is a written plan for keeping an organization running at an acceptable level through a disaster and recovering afterward. It plans for damage to its own locations, loss of key suppliers or customers, and utility outages, and the income lost.
Business income insuranceCoverage: Business income insurance pays the net income a business loses, and the normal operating expenses such as payroll that keep running, while operations are suspended because of covered physical damage to its property. Coverage usually starts after a short waiting period.
Business owners policyCoverage: A businessowners policy (BOP) is a package policy for small and midsize businesses that combines property, business income and liability coverage. It usually leaves out commercial auto, workers compensation and professional liability, which are bought separately.

C

Capital expenditureInspection: A capital expenditure is money spent to buy, build or improve a long-lived asset, such as a building or one of its major systems like the roof or HVAC. Unlike repairs and maintenance, which are expensed when paid, it is capitalized and depreciated over time.
Captive insuranceCoverage: A captive is an insurance company formed mainly to insure the risks of its owners or members, such as a parent company or a group of related businesses. Captives are licensed under special laws and regulated differently from commercial insurers.
Catastrophe claimClaims: A catastrophe claim is a claim arising from a catastrophe: a severe event such as a hurricane, tornado or large hailstorm that damages many properties at once and causes large insured losses.
Catastrophe exposureRisk: Catastrophe exposure is the property and value at risk from a single severe event, such as a hurricane or hailstorm, that can damage many locations at once. Catastrophe models estimate it from each location's features, insured values and policy terms such as deductibles and limits.
Catastrophe modelingRisk: Catastrophe modeling uses computer simulations of thousands of possible disasters to estimate the damage and insured losses they would cause to a group of properties. Insurers use results such as average annual loss and probable maximum loss to set rates, buy reinsurance and plan capital.Read more
Catastrophe modeling softwareSoftware: Catastrophe modeling software simulates thousands of possible disasters, such as hurricanes, to estimate the damage each would do to a group of properties, then applies policy terms like deductibles and limits to estimate the insured loss.Read more
Category 3 waterClaims: Category 3 water is grossly contaminated water that can carry harmful agents, such as sewage, seawater flooding or rising river water. The term comes from the ANSI/IICRC S500 water damage standard, under which wind-driven rain is not automatically Category 3.Source: IICRC
CausationClaims: Causation is what caused the damage. It decides whether a property policy pays, since policies cover loss from covered causes. When causes combine, courts look for the proximate cause, the one with the most significant impact in bringing about the loss.
Certificate of insuranceCoverage: A certificate of insurance is a document that summarizes an insured's policies, insurers, limits and dates for a third party. It is evidence of coverage only and does not change the policy; only an endorsement does that.
Certificate of insurance trackingSoftware: Certificate of insurance tracking is the ongoing work of collecting certificates of insurance from contractors, vendors and tenants and checking that they carry, and keep renewing, the coverage their contracts require.
Chapter 542AClaims: Chapter 542A of the Texas Insurance Code sets procedures for lawsuits over property claims caused by forces of nature, such as hail, wind and hurricanes. A claimant must give written notice at least 61 days before suing, stating the amount alleged owed and attorney's fees.Source: Texas Legislature
Citizens Property Insurance CorporationCoverage: Citizens Property Insurance Corporation is the Florida government entity that insures property owners who cannot get coverage in the private market, making it the state's insurer of last resort.Source: Florida Office of Insurance Regulation
Civil authority coverageCoverage: Civil authority coverage, part of business income insurance, pays lost income when a government order bars access to the insured premises because of covered damage to nearby property. Policies usually limit the distance, add a waiting period and cap how long it pays.
Claim denialClaims: A claim denial is an insurer's decision not to pay all or part of a claim, usually because it finds the loss falls outside the policy's coverage or a policy condition was not met. The insurer typically explains the decision in writing.
Claim frequency and severityClaims: Frequency is how often losses occur; severity is how costly each loss is. Together they describe a loss history and guide pricing and loss control: loss prevention aims to cut frequency, and loss reduction aims to limit severity.
Claims management softwareSoftware: Claims management software is the system an insurer, third-party administrator or self-insured organization uses to run a claim from first notice of loss (FNOL) to settlement: assigning adjusters, setting reserves, tracking payments and litigation, and keeping the claim file.Read more
Class 4 shinglesRoofing and building: Class 4 shingles are steep-slope roof coverings with the top rating in the UL 2218 or FM 4473 impact tests. The tests simulate hailstones 1.25 to 2 inches across; Class 4 matches a 2-inch hailstone.Source: RICOWI, UL Standards & Engagement, FM Approvals
Climate riskRisk: Climate risk is the financial risk that climate change creates. It has two parts: physical risk, damage from more frequent or severe weather and slow changes such as sea level rise, and transition risk, the costs of moving to a low carbon economy.
CMMSSoftware: A CMMS (computerized maintenance management system) is software for running building and equipment maintenance. It issues and tracks work orders, schedules preventive maintenance, keeps equipment history and warranties, and tracks spare parts.
COI tracking softwareSoftware: COI tracking software collects the certificates of insurance that vendors, contractors and tenants provide, checks them against the coverage each contract requires, and sends reminders before policies expire. A certificate proves only that coverage was in force when it was issued.Read more
CoinsuranceCoverage: Coinsurance is a property policy condition that requires a limit of at least a set percentage, such as 80%, 90% or 100%, of the property's value at the time of loss. If the limit is lower, the insurer pays only a share of each loss.Source: Insurance Services Office (copy hosted by Independent Insurance Agents of Texas), IRMI · Read more
Coinsurance penaltyCoverage: A coinsurance penalty is the part of a loss the insurer does not pay because the property was insured for less than the share of its value the policy requires, often 80 percent. The payment is cut in proportion to the shortfall.Source: IRMI, Insurance Services Office (copy hosted by Independent Insurance Agents of Texas)
Colorado Division of InsuranceOrganizations: The Colorado Division of Insurance is the state agency that regulates insurance companies and agents in Colorado. It reviews premiums, policy benefits and claims practices, monitors the finances of insurers based in the state and investigates consumer complaints.Source: Colorado Division of Insurance
Combined ratioCoverage: The combined ratio measures an insurer's underwriting results: its losses, loss adjustment expenses and other expenses as a share of premium. A combined ratio below 100% means the insurer made an underwriting profit.Source: International Risk Management Institute (IRMI)
Commercial property insuranceCoverage: Commercial property insurance pays to repair or replace a business's buildings and business property after fire, wind, hail or another covered cause, and can cover lost income. Basic and broad forms cover named causes; the special form covers every cause not excluded.
Commercial real estate insuranceCoverage: Commercial real estate insurance is the set of coverages an owner of commercial buildings carries, chiefly commercial property for the buildings and general liability for injuries on the premises. The two are often combined in a package policy.
Commercial roof inspectionInspection: A commercial roof inspection is a visual check of a roof, nearby walls and rooftop equipment, recorded with notes and photos. NRCA recommends one at least twice a year, preferably spring and fall, plus one after a hurricane, tornado or hailstorm.Source: Professional Roofing, NRCA · Read more
Concurrent causationClaims: Concurrent causation is when covered and excluded perils act together, at once or in sequence, to cause the same damage. Standard property forms carry anti-concurrent causation wording so an exclusion still applies whatever other cause contributed.
Condenser coil hail damageRoofing and building: Condenser coil hail damage is hail denting of the thin aluminum fins on condenser coils of rooftop air conditioning units and air-cooled chillers. Flattened fins block airflow, which wastes energy and can lead to downtime; the dents can also show how big the hail was.
Condo master policyCoverage: A condo master policy is the insurance a condominium association buys on the buildings and common areas it is responsible for, plus its liability. How much of each unit it covers depends on the governing documents; owners' assessments pay the premium.
Cone of uncertaintyHail and wind: The cone of uncertainty is the National Hurricane Center's map of the probable track of a tropical cyclone's center, sized from past forecast errors so the center stays inside about two-thirds of the time. It does not show the storm's size.Source: NOAA National Hurricane Center
Construction classCoverage: Construction class groups buildings by the materials of their walls, floors and roof, which insurers use to rate commercial property for fire risk. ISO uses six classes, from frame, the least fire resistive, to fire resistive, the most.Source: IRMI
Contents inventoryClaims: A contents inventory is an itemized list of the personal property at a location, damaged and undamaged, with quantities, costs and values. Policies commonly require one after a loss if the insurer asks, and it often lists model and serial numbers, purchase dates and prices.
Contractual risk transferRisk: Contractual risk transfer is shifting the cost of certain losses to another party through contract terms, such as indemnity clauses, waivers of subrogation and requirements to carry insurance. Leases, construction contracts and service agreements use it often.
COPECoverage: COPE stands for construction, occupancy, protection and exposure, the four traits of a building that property underwriters review to judge its risk: what it is built of, how it is used, how well it is protected from fire, and the hazards around it.Read more
Cosmetic damage exclusionCoverage: A cosmetic damage exclusion removes coverage for wind or hail damage, such as dents, marring or pitting, that only changes how a roof looks. Damage that lets water through or stops the roof from keeping out the elements over time is not treated as cosmetic.
Cover boardRoofing and building: A cover board is a rigid board laid over roof insulation, such as polyiso foam, to protect it and give the membrane a firm surface. Common types are glass-faced gypsum, fiberglass, perlite, wood fiberboard and high-density polyiso.
Creased shinglesRoofing and building: Creased shingles are asphalt shingle tabs with a fold line across them, left when wind breaks the sealant bond and bends the tab back. A crease is a common mark of wind on a shingle roof; a tab that is only unsealed is not.Read more

D

Date of lossClaims: The date of loss is the date the damage to insured property happened. It places a claim in a policy period, and notice, proof of loss and lawsuit deadlines in policies and state laws often count from it.Read more
Debris removal coverageCoverage: Debris removal coverage pays to clear away the debris of covered property after a covered loss. Property policies cap how much it pays and set a deadline for reporting the costs.
Declarations pageCoverage: The declarations page is the summary at the front of an insurance policy. It lists the named insured, insured locations, policy period, coverages, limits, deductibles and premium.
DeductibleCoverage: A deductible is the part of a covered loss the insured pays before the insurer pays the rest, up to the policy limits. Property policies usually apply it per occurrence, as a flat dollar amount or a percentage of the insured value.
Deductible vs self-insured retentionCoverage: With a deductible, the insurer handles the claim and the deductible is subtracted from the payment or repaid by the insured. With a self-insured retention (SIR), the insured pays, and often handles, losses itself up to the SIR, and the insurer pays only above it.
Deferred maintenanceInspection: Deferred maintenance is maintenance and repair work that was due but put off to a later time. It does not include upgrades that add capacity, and its total cost is often compared with a building's replacement value to gauge condition.
Depreciation holdbackClaims: A depreciation holdback is the depreciation an insurer withholds from its first payment on a replacement cost claim. The insurer releases the held amount, often called recoverable depreciation, after the property is actually repaired or replaced.
DerechoHail and wind: A derecho (day-RAY-cho) is a widespread windstorm from a long-lived group of thunderstorms that causes straight-line wind damage along a long path. The Storm Prediction Center's definition needs a damage swath at least 250 miles long with gusts of 58 mph or more along it.Source: NOAA Storm Prediction Center
Design wind speedRoofing and building: Design wind speed is the wind a building must resist, read from code maps as a 3-second gust at 33 feet above open ground (Exposure C). For most buildings (Risk Category II), it has about a 7 percent chance of being topped in 50 years.Source: Federal Emergency Management Agency, Federal Emergency Management Agency, Federal Emergency Management Agency
Desk adjusterClaims: A desk adjuster handles claims from an office instead of at the property, reviewing photos, videos, estimates and documents from field adjusters or the policyholder to set the repair cost and make claim decisions. Desk adjusters may be insurer employees or independent adjusters.
Difference in conditions insuranceCoverage: Difference in conditions (DIC) insurance is a broad property policy bought alongside a standard property policy to cover perils that policy excludes, most often flood and earthquake. It can also add limits where the main policy covers a peril only in small amounts.
Digital twinSoftware: A digital twin is a computer model of a physical asset, such as a building or a piece of equipment, kept current with data from the real thing. It is used to monitor condition, spot problems early and plan maintenance.
DownburstHail and wind: A downburst is a strong downdraft from a thunderstorm that hits the ground and spreads damaging straight-line winds outward. Microbursts are downbursts under 2.5 miles (4 km) across; larger ones are macrobursts.Source: NOAA National Severe Storms Laboratory, NOAA National Weather Service
DP-3 policyCoverage: A DP-3 policy is the ISO special form dwelling policy, often used for rented homes. It covers the dwelling and other structures against direct physical loss unless excluded, plus personal property, fair rental value and additional living expense.Source: Insurance Services Office (ISO) form text
Drone roof inspectionInspection: A drone roof inspection uses an unmanned aircraft with a camera to photograph and assess a roof, useful on roofs too large, steep or fragile to walk. In the US, commercial drone flights fall under FAA Part 107, which requires a certified remote pilot.Source: Federal Aviation Administration
Dual-polarization radarHail and wind: Dual-polarization radar sends and receives pulses in both horizontal and vertical orientations, which shows the size and shape of what it detects. That helps forecasters tell rain from hail and snow and spot tornado debris. The national weather radar network uses it.
Duties after lossClaims: Duties after loss are the steps a property policy requires after damage: prompt notice, a description of the loss, protecting the property, inventories, inspection access, cooperation and a sworn proof of loss, due within 60 days of request under the standard ISO commercial form.Source: Insurance Services Office (copy hosted by Independent Insurance Agents of Texas)
Duty to mitigateClaims: The duty to mitigate is a policyholder's obligation after a loss to take reasonable steps to protect the property from further damage, such as tarping a roof or boarding windows, and to keep a record of what those steps cost.

E

Earned premiumCoverage: Earned premium is the part of a policy's premium that covers the time already passed. Premium is usually earned evenly over the term; the rest, paid but not yet earned, is unearned premium and is what a refund on cancellation is based on.
Earthquake insuranceCoverage: Earthquake insurance covers damage from earthquakes, which standard property policies usually exclude. It is bought as a separate policy or added by endorsement, and its deductible is usually a percentage of the insured value rather than a flat dollar amount.
Egg-size hailHail and wind: Egg-size hail is hail about 2 inches (51 mm) across, roughly the size of a hen's egg. Hail 2 inches or larger is classed as significant severe hail by the Storm Prediction Center.Source: NOAA National Weather Service, NOAA Storm Prediction Center
EIFSRoofing and building: Exterior insulation and finish system (EIFS) is a nonstructural wall cladding made of foam insulation board fixed to the outside wall, covered by a reinforced base coat and a textured finish coat. It looks like stucco but is lighter and adds insulation.
Elevation certificateHail and wind: An elevation certificate is a FEMA form that records a building's elevation and flood zone details. Communities use it to show that new or substantially improved buildings in high-risk flood areas are built high enough, and it can be used to rate flood insurance.Source: FEMA
Emergency action planRisk: An emergency action plan (EAP) is a written plan for what employers and employees do during a workplace emergency: how to report it, how to evacuate or shelter in place, and who coordinates the response. Many OSHA standards require one.Source: OSHA
Emergency roof tarpingClaims: Emergency roof tarping is covering holes in a storm-damaged roof with a tarp or other waterproof material to keep water out until permanent repairs. It is a temporary repair and a common way to meet the policy duty to protect property from further damage.
EndorsementCoverage: An endorsement is a form added to an insurance policy that changes its terms. It can broaden or limit coverage, add insureds or locations, or change the policy's definitions, exclusions, conditions or declarations.
Engineer reportClaims: An engineer report is a licensed engineer's written evaluation of a building's damage and its likely cause. Insurers often order one during a claim, especially to tell storm damage apart from wear, settling or construction defects.
Enhanced Fujita scaleHail and wind: The Enhanced Fujita (EF) scale rates a tornado's strength by estimating its wind speed from the damage it caused to buildings, trees and other structures. Ratings run from EF0, with 3-second gusts of 65 to 85 mph, to EF5, over 200 mph.Source: NOAA Storm Prediction Center
Enterprise risk managementRisk: Enterprise risk management (ERM) is a way of managing all of an organization's risks together, insurable or not, including hazard, operational, credit and financial risk, rather than handling each type separately.
EPDM roofRoofing and building: An EPDM roof is a low-slope roof covered with a single-ply membrane of ethylene propylene diene terpolymer, a synthetic rubber. The sheets are adhered, fastened or ballasted in place, with seams joined by tape or adhesive.
Equipment breakdown insuranceCoverage: Equipment breakdown insurance covers sudden mechanical or electrical breakdown of nearly any equipment, from boilers and HVAC systems to computers, paying to repair or replace it and other property the breakdown damages. Standard commercial property policies usually exclude this kind of loss.
Evidence of property insuranceCoverage: Evidence of property insurance is a certificate, usually ACORD 27 or ACORD 28, that shows a lender or other party with a financial interest in a property the policy, limits and deductibles. It is issued for information only and confers no rights.Source: ACORD, New York State Department of Financial Services
Examination under oathClaims: An examination under oath (EUO) is sworn questioning of an insured by the insurer about a claim, usually recorded by a court reporter. Standard property policies let the insurer examine any insured under oath, apart from other insureds, and require signed answers.
Excess flood insuranceCoverage: Excess flood insurance pays flood losses above the limit of a primary flood policy. It often sits over a National Flood Insurance Program policy, whose commercial coverage stops at $500,000 for the building and $500,000 for contents.Source: FEMA
Excess property insuranceCoverage: Excess property insurance covers property loss above the limit of a primary policy, a self-insured retention or another underlying layer, up to its own limit. Owners of high-value properties often stack several excess layers to reach the total limit they need.
ExclusionCoverage: An exclusion is a provision in an insurance policy that names perils, causes of loss, property or situations the policy does not cover. Exclusions can appear in the coverage form, the causes of loss form or an endorsement.
Exposure managementRisk: Exposure management is how an insurer tracks and limits the risk it takes on, especially catastrophe risk that builds up when one storm or earthquake can damage many properties at once. It sets how much loss the insurer will accept and keeps exposures within it.Read more
Extended period of indemnityCoverage: Extended period of indemnity is a business income option that lengthens how long the policy keeps paying after repairs are done, while income recovers. On the ISO form it replaces the standard 60 days with the number of days shown in the declarations.Source: Insurance Services Office (ISO)
Extra expense coverageCoverage: Extra expense coverage pays necessary costs above normal operating expenses to avoid or shorten a shutdown after covered damage, such as renting a temporary location or speeding up repairs. It is usually written with business income coverage.

F

Facility condition assessmentInspection: A facility condition assessment is an inspection of a building or portfolio that records the condition of each system and component, lists deficiencies and estimates the cost to correct them. Owners use the results to plan repairs and capital budgets.
Facility condition indexInspection: The facility condition index (FCI) is the cost of a building's deferred repairs divided by its current replacement value. It is a quick measure of condition at one point in time: the higher the number, the worse the building's condition.Read more
Facility management softwareSoftware: Facility management software helps run buildings over their life: work orders for preventive and reactive maintenance, vendor and utility tracking, building condition assessments and space planning. Platforms that also handle real estate portfolio management are called integrated workplace management systems (IWMS).
FAIR planCoverage: A FAIR plan (Fair Access to Insurance Requirements plan) is a state insurance pool that sells basic property insurance to owners who cannot get it from regular insurers. Insurers licensed in the state back it and share its losses, usually by market share.
Fannie Mae property insurance requirementsCoverage: Fannie Mae property insurance requirements are the coverage rules in its Multifamily Selling and Servicing Guide for properties backing its multifamily loans. Among them: replacement cost coverage, insurers rated A- or better by A.M. Best, and Fannie Mae named as mortgagee.Source: Fannie Mae
FEMAOrganizations: The Federal Emergency Management Agency (FEMA) is the U.S. agency, part of the Department of Homeland Security, that helps communities prepare for, respond to and recover from disasters. It also runs the National Flood Insurance Program.
Field adjusterClaims: A field adjuster inspects damaged property in person and documents the loss with measurements, photos and notes for the repair estimate. A field adjuster may be the insurer's own staff adjuster or an independent adjuster working under contract.
Fire resistive constructionCoverage: Fire resistive construction is the most fire-resistant ISO construction class: exterior walls, floors and roof are masonry or fire-resistive materials rated for at least 2 hours. Modified fire resistive construction uses ratings of 1 hour to under 2 hours.Source: IRMI
First notice of lossClaims: First notice of loss (FNOL) is the first report of a loss to the insurer, the step that opens a claim. The policy requires the insured to give prompt notice, and state law sets how quickly the insurer must respond once notice arrives.Read more
Flash floodHail and wind: A flash flood is a fast, dangerous rise of water into normally dry areas, or a stream rising quickly above flood level, within six hours of heavy rain, a dam or levee failure, or an ice jam release.Source: NOAA National Weather Service
Flood insuranceCoverage: Flood insurance covers direct physical loss from flooding, which standard property policies usually exclude. In the US it is available through FEMA's National Flood Insurance Program and from private insurers.Source: FEMA
Flood zoneHail and wind: A flood zone is the flood hazard area a FEMA Flood Insurance Rate Map (FIRM) assigns to land. Zones starting with A or V are high-risk Special Flood Hazard Areas (1% annual chance); shaded X is moderate (0.2%); unshaded X is minimal.Source: FEMA
Florida 25 percent roof ruleRoofing and building: Under the Florida Building Code, if more than 25 percent of a roof section is repaired, replaced or recovered within 12 months, the whole section must be brought up to current code. Roofs built to the 2007 code or later are exempt from this rule.Source: Florida Building Commission, Florida Legislature
Florida Building CodeRoofing and building: The Florida Building Code is Florida's statewide building code, adopted and updated by the Florida Building Commission from the International Codes. Miami-Dade and Broward counties form its High-Velocity Hurricane Zone, which has more specific roofing material requirements.Source: Florida Legislature, Federal Emergency Management Agency
Florida Office of Insurance RegulationOrganizations: The Florida Office of Insurance Regulation (OIR) is the state agency that regulates insurance companies in Florida, including their licensing, rates, policy forms, market conduct, claims handling and solvency.Source: Florida Office of Insurance Regulation
FM 1-90Roofing and building: An FM Approvals rating for a roof assembly: the 1 means it meets the Class 1 rating for interior fire spread, and the 90 is its wind uplift rating in pounds per square foot. A 1-180 assembly is rated for 180.Source: FM Approvals
FM 4473Roofing and building: A test standard from FM Approvals that rates the hail resistance of rigid roofing such as slate, concrete and clay tile. Freezer ice balls are fired at the roofing, and Classes 1 to 4 match ice balls of 1.25, 1.5, 1.75 and 2 inches.Source: FM Approvals
FM ApprovalsOrganizations: FM Approvals is a testing and certification organization for property loss prevention products. It tests roof assemblies for fire, wind uplift and hail resistance and publishes a list of the products that pass.Source: FM Approvals, FM Approvals
Force-placed insuranceCoverage: Force-placed insurance, also called lender-placed insurance, is coverage a lender or loan servicer buys on a financed property when the borrower's own policy lapses or falls short of the loan terms. The borrower is charged the premium, which usually costs more for less coverage.
FORTIFIED RoofRisk: FORTIFIED Roof is the first level of the IBHS FORTIFIED building standard. It calls for stronger roof edges, a sealed roof deck and ring-shank nails in an enhanced pattern to resist wind, with an optional hail supplement that requires impact-rated roof covers.Source: IBHS, IBHS
Four-point inspectionInspection: A four-point inspection is a limited inspection of a home's roof, electrical, plumbing and HVAC that an insurer uses to decide whether the home is insurable. It is mainly a Florida practice, where insurers commonly require one on older homes.Source: Florida Department of Financial Services, Office of the Insurance Consumer Advocate · Read more
Frame constructionCoverage: Frame construction is ISO construction class 1, the least fire-resistive of the six classes insurers use. Its exterior walls are wood, or wood covered with brick veneer, stone veneer, metal or stucco, so a brick-veneered building can still rate as frame.Source: IRMI
Freddie Mac property insurance requirementsCoverage: Freddie Mac property insurance requirements are the coverage rules in Chapter 31 of its Multifamily Seller/Servicer Guide. Coverage must match ISO forms at replacement cost, with a per-occurrence property deductible of at most $50,000, or $100,000 at $10 million or more of insurable value.Source: Freddie Mac
Frozen pipesHail and wind: Frozen pipes are water lines where ice blocks the flow. Pressure then builds between the ice and a closed faucet or valve, so the pipe often bursts away from the ice itself, and the leak usually shows when it thaws.
Functional replacement costCoverage: Functional replacement cost is the cost to replace damaged property with property that does the same job equally well, using modern materials or methods, even if it is not identical. It is often lower than the cost of an exact copy, especially for older buildings.
Functional vs cosmetic damageRoofing and building: Functional damage reduces a roof's ability to shed water or shortens its expected life; cosmetic damage, such as dents or pitting, changes only how it looks. Some commercial property policies exclude cosmetic wind or hail damage to roof surfacing by endorsement.

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General liability insuranceCoverage: General liability insurance covers a business's legal liability for injuries to other people and damage to their property arising from its premises, operations and products, plus personal and advertising injury. Employee injuries, auto accidents and professional errors need other policies.
Geospatial risk dataSoftware: Geospatial risk data links hazard and risk measures, such as flood zones, hail frequency or wildfire risk, to places on a map, from a single parcel up to a county. It lets owners, lenders and insurers compare risk across sites.
Golf-ball-size hailHail and wind: Golf-ball-size hail is hail about 1.75 inches (44 mm) across, the size US weather reports give a golf ball. It is roughly where weather warnings start to expect roof damage and where many roof coverings start to break.Source: NOAA National Weather Service, NOAA National Weather Service, FM Global, American Meteorological Society, 21st Conference on Severe Local Storms · Read more
Granule lossRoofing and building: Granule loss is the shedding of the mineral granules that surface asphalt shingles. Some shedding is normal on new shingles and as they weather. After hail, inspectors look for spots where impacts knocked granules loose and exposed the asphalt underneath.
Grapefruit-size hailHail and wind: Grapefruit-size hail is hail about 4.50 inches (114 mm) across, the largest object on the NWS and SPC hail size charts. Hailstones over 4 inches across can fall faster than 100 mph.Source: NOAA Storm Prediction Center, NOAA National Weather Service, NOAA National Severe Storms Laboratory
GraupelHail and wind: Graupel is soft, white pellets of ice that form when supercooled water droplets freeze onto a falling snowflake or ice crystal. Also called snow pellets, it crushes easily and is smaller and softer than hail, which is 0.2 inch (5 mm) or larger.Source: American Meteorological Society
Gust frontHail and wind: A gust front is the leading edge of cool air rushing out of a thunderstorm's downdraft. It brings a sudden wind shift, a temperature drop and strong gusts, often ahead of the rain, and sometimes a shelf cloud along its edge.

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Habitational insuranceCoverage: Habitational insurance is commercial property and liability coverage for residential rental property, such as apartment buildings, rented homes and condominium associations. It usually combines coverage for the building, business personal property and business income with liability for injuries or damage to others.
HailHail and wind: Hail is precipitation in the form of balls or lumps of ice, formed in thunderstorm updrafts. A thunderstorm with hail 1 inch or larger in diameter counts as severe.Source: NOAA Storm Prediction Center
Hail alleyHail and wind: Hail alley is the part of the US Great Plains with the most frequent hailstorms, centered where Nebraska, Colorado and Wyoming meet. That area averages 7 to 9 hail days a year.Source: NOAA National Severe Storms Laboratory, NOAA National Centers for Environmental Information
Hail bruisingRoofing and building: Hail bruising is hail damage to an asphalt shingle that breaks or crushes its reinforcing mat without leaving a hole, felt as a soft spot when pressed. Granules are often knocked off the spot, exposing the asphalt.
Hail coreHail and wind: A hail core is the part of a thunderstorm where its heaviest rain and hail are concentrated, held aloft by the updraft until they fall. The hail that reaches the ground from it can cover a narrow path and last only a short time.
Hail damage on asphalt shingle roofsRoofing and building: Hail damage on an asphalt shingle roof is a bruise, fracture or puncture of the shingle's reinforcing mat, usually under a round spot where granules were knocked off. Unsupported hips, ridges and valleys, windward slopes and aged, brittle shingles fail first.Read more
Hail damage on flat roofsRoofing and building: Hail damage on a flat, or low-slope, roof is a fracture, puncture or bruise in the membrane, coating or foam, or crushed insulation beneath it. Gravel surfacing and firm support raise the hail size that does damage; soft insulation, age and unsupported flashings lower it.Read more
Hail damage on metal roofsRoofing and building: Hail damage on a metal roof is mostly denting of panels, ribs and seams. Most dents change only how the roof looks. Damage becomes functional when hail opens seams or laps, loosens panels from their clips or, rarely, punctures the metal and lets water in.Read more
Hail damage on modified bitumen roofsRoofing and building: Hail damage on a modified bitumen roof is a fracture or bruise of the membrane's reinforcement, often felt as a soft spot, or surfacing knocked off to expose the bitumen. Membranes laid directly over soft insulation, aged sheets and unsupported flashings fail first.Read more
Hail damage on TPO roofsRoofing and building: Hail damage on a TPO roof is a crack, split or puncture in the single-ply membrane, or crushed cover board and insulation beneath it. Hits over fastener plates and aged, brittle membranes fail first, and damage under an intact-looking sheet can be hidden.Read more
Hail damage vs blisteringRoofing and building: Hail damage on asphalt shingles shows as roughly round, randomly scattered spots of exposed asphalt where impacts knocked off granules. Blisters are bubbles in the shingle surface that weather into small, steep-sided pits. Fresh hail marks look dark and turn gray over time.
Hail dayHail and wind: A hail day is a day with at least one hail report at or near a location, often counted within a set radius such as 25 miles. Hail climatologies count hail days per year to compare how often places get hail.Source: NOAA National Weather Service, Cheyenne, Wyoming
Hail seasonHail and wind: Hail season is the part of the year when hail is most likely in an area. Its timing varies by region, but most hail falls in spring and summer, when strong thunderstorms are most common.
Hail size chartHail and wind: A hail size chart matches the everyday objects people use to report hail to diameters, such as penny 0.75 inch, quarter 1.00, golf ball 1.75 and baseball 2.75. The National Weather Service counts hail 1 inch or larger as severe.Source: NOAA Storm Prediction Center, NOAA Storm Prediction Center
Hail swathHail and wind: A hail swath is the strip of ground where hail fell as a storm moved while hail was falling. Swaths range from a few acres to areas 10 miles wide and 100 miles long.Source: NOAA National Severe Storms Laboratory
Hail tracking softwareSoftware: Hail tracking software maps hail swaths, the paths where hail fell as storms moved, with hail sizes estimated from weather radar. Insurers use such maps to review claims, but radar sizes are estimates and can differ from the hail that reached the ground.
HailstormHail and wind: A hailstorm is any storm that drops hail to the ground. The term usually means a storm with enough hail, or large enough stones, to cause damage.
Half-dollar-size hailHail and wind: Half-dollar-size hail is hail about 1.25 inches (32 mm) across. That is above the NWS 1-inch severe hail threshold but below the 1.75-inch golf ball size at which National Weather Service warnings tag considerable damage.Source: NOAA National Weather Service, NOAA Storm Prediction Center, NOAA National Weather Service
Hard freezeHail and wind: A hard freeze is air temperature of 28°F (minus 2°C) or lower for long enough to kill most plants. For buildings, the main risk is frozen and burst pipes, especially pipes outside the insulation in warm climates.Source: NOAA National Weather Service, Insurance Institute for Business & Home Safety (IBHS)
Hard insurance marketCoverage: A hard insurance market is the phase of the insurance cycle when premiums rise, coverage terms tighten and insurers offer less capacity. It often follows heavy losses or weak investment returns.
HOA insuranceCoverage: HOA insurance is the master policy a homeowners or condominium association carries on common areas and the association's liability, paid from owners' dues. Whether it also covers parts of each unit depends on the association's governing documents.
Hold harmless agreementRisk: A hold harmless agreement is a contract clause in which one party takes on certain legal liability of the other, such as claims arising from the work. Limited, intermediate and broad forms differ by how much of the other party's own negligence they cover.
Hotel insuranceCoverage: Hotel insurance is a commercial package for hotels and motels that combines property coverage, including business income and equipment breakdown, with liability coverage for injuries to guests and others. It often adds innkeepers liability for guests' belongings.
HurricaneHail and wind: A hurricane is a tropical cyclone with maximum sustained winds of 74 mph (64 knots) or more. The Saffir-Simpson scale rates hurricanes Category 1 to 5; Category 3 and higher, 111 mph or more, are major hurricanes.Source: NOAA National Hurricane Center, NOAA National Hurricane Center
Hurricane deductibleCoverage: A hurricane deductible is a separate deductible for hurricane damage, usually 1 to 15 percent of insured value rather than a flat dollar amount. It applies only when a storm meets the policy's trigger, such as the National Weather Service declaring a hurricane.Source: National Association of Insurance Commissioners (NAIC)
Hurricane preparedness planRisk: A hurricane preparedness plan is a written plan for how an organization protects its people, property and operations before, during and after a hurricane or tropical storm. It usually covers risks, roles, communications, building protection, backup systems and recovery steps.
Hurricane seasonHail and wind: Hurricane season is the part of the year when most hurricanes form: June 1 to November 30 in the Atlantic, Caribbean and Gulf, and May 15 to November 30 in the eastern Pacific. Atlantic activity peaks from mid-August to mid-October.Source: NOAA National Hurricane Center, NOAA National Hurricane Center
Hurricane strapsRoofing and building: Hurricane straps are metal connectors that tie roof rafters or trusses to the walls, holding the roof down against wind uplift far better than toe-nailing. Near the coast they need corrosion-resistant metal, such as hot-dipped galvanized or stainless steel.
Hurricane-prone regionRoofing and building: A hurricane-prone region is an area building codes treat as exposed to hurricanes: the U.S. Atlantic and Gulf coasts where the basic wind speed for Risk Category II buildings exceeds 115 mph, plus Hawaii, Puerto Rico, Guam, the U.S. Virgin Islands and American Samoa.Source: Federal Emergency Management Agency, Federal Emergency Management Agency

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IBHSOrganizations: The Insurance Institute for Business & Home Safety (IBHS) is an independent nonprofit research organization supported by property insurers and reinsurers. It tests full-scale buildings against high wind, wind-driven rain, hail and wildfire to find how they fail and guide better construction.Source: Insurance Institute for Business & Home Safety
IBHS FORTIFIEDRisk: IBHS FORTIFIED is a voluntary construction and re-roofing standard from the Insurance Institute for Business & Home Safety that strengthens homes and commercial buildings against high winds, hail and hurricanes. It has three levels: Roof, Silver and Gold.Source: IBHS · Read more
Ice damHail and wind: An ice dam is a ridge of ice at a roof edge, or around drains on a low-slope roof, that stops melting snow from draining. Water backed up behind it can leak into the building, and the ice adds weight to the roof.
IICRC S500Claims: IICRC S500 is the ANSI/IICRC Standard for Professional Water Damage Restoration. It sets the procedures and precautions for inspecting, drying and restoring water-damaged buildings and contents, including how to classify the water by category of contamination.Source: IICRC, IICRC
Impact-based warningHail and wind: An impact-based warning is a National Weather Service warning format that states the hazard, its source and its likely impacts, with a damage threat tag. Severe thunderstorm tags are base, considerable and destructive; destructive (2.75-inch hail or 80 mph wind) triggers Wireless Emergency Alerts.Source: NOAA National Weather Service, NOAA National Weather Service
Impact-resistant roofRoofing and building: An impact-resistant roof has a covering tested to resist hail, such as steep-slope products rated Class 1 to 4 under UL 2218 or FM 4473, or FM Approved assemblies rated for moderate or severe hail. Tests use new material, and weathering can lower resistance.Source: UL Standards & Engagement, FM Approvals, FM Approvals, RICOWI
Impact-resistant roof discountCoverage: An impact-resistant roof discount is a premium credit for roof coverings that pass a recognized impact test and are rated Class 1 to 4, with Class 4 earning the most. Each insurer sets its own discount and the proof it accepts.Source: Texas Department of Insurance
Increased cost of constructionCoverage: Increased cost of construction coverage pays the extra cost of meeting current building codes or zoning laws when repairing or rebuilding covered damage. Standard property forms include only a limited amount; ordinance or law coverage adds more.
Indemnification clauseRisk: An indemnification clause, also called a hold harmless clause, is a contract term in which one party agrees to take on certain losses or legal liabilities of the other. Leases and construction contracts commonly use one, such as a contractor indemnifying an owner.
Independent adjusterClaims: An independent adjuster is a claims adjuster who works on contract for insurers, self-insured companies or government bodies instead of on their staff. Insurers use them when claims pile up, often after a catastrophe, for claims in remote areas, or for claims needing special expertise.Read more
Industrial property insuranceCoverage: Industrial property insurance covers warehouses, factories, distribution centers and other industrial buildings and their contents. It often adds business income and equipment breakdown coverage, since damage to a plant or its machinery can halt operations.
Infrared roof scanRoofing and building: An infrared roof scan uses a thermal camera, usually at night from the roof or the air, to find wet insulation under a roof membrane. Suspect areas are confirmed with core samples; the scan does not show where the water got in.
Insurable interestCoverage: Insurable interest is a legal or financial stake in property, so that its damage would cost a party money; a party needs it to insure the property. It usually comes from ownership, a contract such as a lease or mortgage, or possible legal liability.
Insurance adjusterClaims: An insurance adjuster investigates a claim, inspects the damage and works out what the insurer owes under the policy. Staff adjusters are insurer employees and independent adjusters work for insurers on contract; public adjusters are hired by policyholders instead.
Insurance bad faithClaims: Insurance bad faith is an insurer's unreasonable or unfair handling of a claim or of its duties to an insured, beyond an honest mistake or mere negligence. Examples include misrepresenting policy terms or not trying in good faith to settle once liability is reasonably clear.
Insurance binderCoverage: A binder is a written agreement from an insurer or its agent that serves as temporary proof of insurance until the policy is issued. It names the insurer, the amount and type of coverage, the perils insured for property, and how long it lasts.
Insurance claimClaims: An insurance claim is a policyholder's request for payment under a policy for a loss the policy may cover. For property damage, policies require prompt notice, a description of the damage and, if the insurer asks, a sworn proof of loss.
Insurance Information InstituteOrganizations: The Insurance Information Institute (Triple-I) is an insurance industry organization, backed by member insurers, that publishes research, data and plain-language explainers about insurance. It says it does not lobby or sell insurance.Source: Insurance Information Institute
Insurance management softwareSoftware: Insurance management software keeps an owner's or risk manager's insurance data in one place: policies, renewal dates, limits, premiums, insured locations and values, and claims. Systems built for risk managers are often called a risk management information system (RMIS).
Insurance renewalCoverage: Renewal replaces an expiring policy with a new one for the next policy period, usually from the same insurer or insurer group. The renewal can come with a new premium, limits, deductibles or terms.
Insurance to valueCoverage: Insurance to value means carrying a property limit close to the property's full value, or at least the share the coinsurance clause requires, commonly 80 percent, so a coinsurance penalty does not reduce a claim payment.Source: IRMI, IRMI
Insuring agreementCoverage: The insuring agreement is the part of an insurance policy that states what the insurer promises to pay for. It often describes coverage broadly, and the policy's exclusions, conditions and definitions then narrow it.
InsurtechSoftware: Insurtech is technology that makes insurance faster and easier to buy, use and service and automates insurer work, such as connected sensors, AI, mobile apps and photo-based claims tools. Regulators also watch its risks, such as data privacy, cybersecurity and bias in AI decisions.
International Building CodeRoofing and building: The International Building Code (IBC) is the International Code Council's model building code, which states and cities adopt, often with changes. It covers all buildings, though detached one- and two-family homes and townhouses up to three stories may use the International Residential Code.
ISOOrganizations: ISO (Insurance Services Office) is the organization that writes standard insurance policy forms, endorsements, rating rules and loss costs that many insurers adopt, and files them with state regulators on insurers' behalf.Source: Insurance Services Office, Inc.
ISO formsCoverage: ISO forms are standard insurance policy forms written by Insurance Services Office (ISO) and used by many insurers, so the same wording appears across companies. Each form has a code, such as CP 00 10 for the commercial Building and Personal Property Coverage Form.Source: Insurance Services Office (ISO)

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Joisted masonry constructionCoverage: Joisted masonry is a building construction class used in property insurance: exterior walls of masonry, such as brick, concrete block or stone, with a combustible floor and roof, usually wood. ISO ranks it construction class 2, the second least fire resistive of its six classes.Source: IRMI

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Landlord insuranceCoverage: Landlord insurance covers a building rented to tenants: damage to the structure from fire, wind, hail and other covered perils, liability if someone is hurt on the property, and often lost rent while repairs are made.
Late noticeClaims: Late notice is reporting a loss to the insurer later than the policy requires; most property policies call for prompt notice. Late notice can lead to a claim being denied, though in many places the insurer must show the delay harmed it.
Lease administration softwareSoftware: Lease administration software is a system of record for leases. It stores each lease and its key terms, such as start and end dates, rent schedules and renewal options, and often also runs lease accounting and reporting under ASC 842 and IFRS 16.Source: Gartner · Read more
Lender loss payable endorsementCoverage: A lender's loss payable endorsement is a commercial property endorsement for a lender whose loan is tied to the insured's business personal property, such as equipment or inventory. It gives that lender the same rights and duties a mortgage clause gives a mortgage holder.
Lessor's risk onlyCoverage: Lessor's risk only (LRO) is liability coverage for a landlord who leases a building to tenants, for injury or property damage claims arising at the leased premises. It does not cover damage to the building itself, which needs commercial property coverage.
LightningHail and wind: Lightning is a visible electrical discharge from a thunderstorm, within a cloud, between clouds, or between a cloud and the ground. It heats the air around it to about 50,000°F, and tall objects such as trees and buildings are struck more often.Source: NOAA National Weather Service, NOAA National Severe Storms Laboratory
Line-item estimateClaims: A line-item estimate prices a repair one item at a time, with each material, quantity, unit price and labor charge on its own line. Adjusters and contractors write them, often in estimating software, so both sides can compare scope and cost line by line.
Local storm reportHail and wind: A local storm report (LSR) is a National Weather Service bulletin that passes on a report of severe or significant weather, such as large hail, damaging wind, a tornado or flooding, soon after it happens. LSRs are preliminary; Storm Data holds the final record.Read more
Loss assessment coverageCoverage: Loss assessment coverage pays an owner's share of an assessment an association charges after a covered loss to common property, such as roof damage larger than the master policy pays. Owner policies often include a small amount, with more by endorsement.
Loss controlRisk: Loss control means steps that make losses less likely, less severe, or both, such as sprinklers that limit fire damage or roof maintenance that prevents leaks. It is also called risk control.
Loss control inspectionInspection: A loss control inspection is an insurer's physical inspection of a building, its operations or both, often on mid- and large-size commercial accounts. The insurer may report findings and recommend changes, but the inspection serves underwriting and pricing, not code approval.Source: IRMI, Insurance Services Office (copy hosted by Independent Insurance Agents of Texas) · Read more
Loss control recommendationInspection: A loss control recommendation is a change an insurer asks for after an inspection to lower the chance or cost of a loss. A critical recommendation is considered essential to avoid an imminent loss and usually must be completed for the policy to be written.
Loss historyClaims: Loss history is the record of past insurance claims for a business or property. Insurers review it, often through prior insurers' loss runs and shared claims databases, to decide whether to offer coverage and at what price.
Loss payeeCoverage: A loss payee is a person or business named in a policy to receive all or part of the insurance payment for covered property it has a financial interest in, such as a lender or a company that leased equipment to the insured.
Loss preventionRisk: Loss prevention is the part of loss control that aims to cut how often losses happen, for example through maintenance, inspections or removing hazards. Loss reduction, the other part, limits how severe a loss is once it occurs, for example with sprinklers or firewalls.
Loss ratioCoverage: A loss ratio is incurred losses, paid claims plus reserves, divided by earned premium and shown as a percentage. For example, $50,000 of incurred losses on $100,000 of earned premium is a 50% loss ratio.Source: International Risk Management Institute (IRMI)
Loss run reportClaims: A loss run is an insurer's report of the claims made under a policy over a period, usually the last several policy years. Each claim shows its date, a description, the amount paid, any amount reserved and whether it is open or closed.Read more
Louisiana CitizensCoverage: Louisiana Citizens Property Insurance Corporation is Louisiana's state-created insurer of last resort. It writes residential and commercial property insurance only for owners who cannot get coverage from private insurers in the voluntary market.Source: Louisiana Department of Insurance, Louisiana State Legislature
Louisiana Department of InsuranceOrganizations: The Louisiana Department of Insurance (LDI) is the state agency that enforces Louisiana's insurance laws and checks that insurers follow the rules protecting policyholders.Source: Louisiana Department of Insurance
Louisiana Fortify Homes ProgramRisk: The Louisiana Fortify Homes Program is a state grant program that pays Louisiana homeowners up to $10,000 to upgrade a primary residence roof to the IBHS FORTIFIED Roof standard. The resulting certificate can be shared with insurers for premium discounts.Source: Louisiana Department of Insurance
Low-slope roofRoofing and building: A low-slope roof has a slope of 3:12 (about 14 degrees) or less and is covered with a continuous waterproof membrane rather than overlapping shingles or tiles. Common types include built-up, modified bitumen, single-ply and spray foam roofs.Source: National Roofing Contractors Association

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Maintenance logInspection: A maintenance log is a running record of a building's inspections, repairs and maintenance, with dates, conditions found and photos. It gives a basis for comparing conditions between inspections, and roof damage inspectors often ask for it.
Managing general agentCoverage: A managing general agent (MGA) is an agent or broker that an insurer authorizes to underwrite on its behalf. Depending on the contract, an MGA may bind coverage, issue policies, appoint producers and arrange reinsurance. MGAs are common in surplus lines and specialty markets.
Margin clauseCoverage: A margin clause limits what can be collected at any one location to a set percentage, such as 110 or 125 percent, of the value reported for it on the statement of values. Attached to blanket limits, it in effect turns them into per-location limits.Source: IRMI
Masonry non-combustible constructionCoverage: Masonry non-combustible construction is ISO construction class 4: masonry exterior walls with floors and roof of metal or other noncombustible materials. It is more fire-resistive than frame, joisted masonry or noncombustible, and less than modified fire-resistive or fire-resistive.Source: IRMI
Master insurance policyCoverage: A master insurance policy covers several locations, operations or insured parties under one policy. Each covered party gets a certificate or similar document as proof of its coverage under the master policy.
Mat fractureRoofing and building: A mat fracture is a break in the reinforcing mat inside an asphalt shingle or bituminous roof membrane where hail struck, often felt as a soft spot, or bruise. It counts as functional damage because it weakens the roofing's ability to shed water.
MatchingCoverage: Matching is whether a claim pays to repair or replace undamaged parts of a building so the repaired area matches the rest in color, texture or size. The answer depends on the policy wording and the law where the property is.
MESHHail and wind: MESH (Maximum Estimated Size of Hail) is a NOAA radar estimate of the largest hail a storm is producing, based on echoes above the freezing level. NOAA's MRMS system computes it on a grid about 1 km (0.6 mile) wide every 2 minutes.Source: NOAA NWS Warning Decision Training Division, American Meteorological Society, via NOAA Storm Prediction Center · Read more
Mesoscale convective systemHail and wind: A mesoscale convective system (MCS) is a group of thunderstorms organized into one larger system that lasts several hours or more. Squall lines are a common form, and these systems can bring damaging wind, hail and heavy rain over wide areas.
MicroburstHail and wind: A microburst is a small, short-lived downburst under 2.5 miles (4 km) across, with straight-line winds that can top 100 mph. Wet microbursts come with heavy rain; dry ones bring little or none.Source: NOAA National Severe Storms Laboratory, NOAA National Weather Service
Minimum earned premiumCoverage: Minimum earned premium is the least premium an insurer keeps if a policy is canceled before it expires, stated in the policy as a dollar amount or a percentage of the premium. It lets the insurer recover its cost of writing the policy.
Mississippi Windstorm Underwriting AssociationCoverage: The Mississippi Windstorm Underwriting Association, known as the windpool, is the state's residual market for windstorm and hail coverage in Hancock, Harrison, Jackson, Pearl River, Stone and George counties. Owners there whose regular policy excludes windstorm can buy that coverage from it.Source: Mississippi Insurance Department, Mississippi Insurance Department
Mixed-use property insuranceCoverage: Mixed-use property insurance covers a building used for more than one purpose, such as shops on the ground floor with apartments above. It usually combines property coverage for the building with liability coverage that fits both the commercial and residential uses.
Modified bitumen roofRoofing and building: A modified bitumen roof is a low-slope roof membrane made of asphalt sheets modified with polymers such as SBS or APP and reinforced with mats. It is usually installed in multiple plies and may be surfaced with granules, films or foils.
Mold exclusionCoverage: A mold exclusion is a policy provision that removes coverage for loss from the presence, growth or spread of fungus, mold, mildew, rot or bacteria. Many property forms give back a small, limited amount of coverage for mold that results from certain covered causes.
Mortgagee clauseCoverage: A mortgagee clause is a property policy provision protecting the named lender, in effect a separate agreement between insurer and lender. Losses are payable to the lender, it gets notice before cancellation, and its coverage can continue even if the owner's act voids the policy.
MRMSHail and wind: MRMS (Multi-Radar/Multi-Sensor System) is a NOAA system that combines radar, satellite, lightning, surface and model data into automated public weather products, such as Maximum Estimated Hail Size (MESH). Its hail sizes are radar estimates, not ground measurements.
Multifamily insuranceCoverage: Multifamily insurance is the coverage on an apartment property, mainly property insurance for the buildings and general liability for injuries on the premises. Multifamily lenders usually set the minimum coverage the owner must carry.

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NAICOrganizations: The National Association of Insurance Commissioners (NAIC) is the standard-setting organization governed by the chief insurance regulators of the US states, the District of Columbia and the US territories. It writes model laws for states to adopt and coordinates oversight of multistate insurers.Source: National Association of Insurance Commissioners
Named insuredCoverage: The named insured is the person or organization listed by name as the insured in a policy's declarations, as distinct from others who count as insureds only through the policy's broader definition. The first named insured usually also pays premium and receives notices.
Named perilsCoverage: Named perils coverage pays only for loss from the causes listed in the policy, such as fire, lightning, windstorm and hail. A cause that is not listed is not covered, unlike special form (open perils) coverage, which covers any cause not excluded.
Named perils vs open perilsCoverage: Named perils coverage pays only for causes of loss the policy lists. Open perils coverage, often called special form, pays for any cause of loss the policy does not exclude.
Named stormHail and wind: A named storm is a tropical storm or hurricane, with sustained winds of 39 mph or more, given a name from lists kept by the World Meteorological Organization. Many property policies use the term to set a separate named storm deductible.Source: NOAA National Hurricane Center, NOAA National Hurricane Center
Named storm deductibleCoverage: A named storm deductible is a separate deductible for damage from a storm the National Weather Service has named, such as a tropical storm or hurricane. It is usually a percentage of the property's insured value rather than a flat dollar amount.
National Hurricane CenterOrganizations: The National Hurricane Center (NHC) is the NOAA office that tracks tropical storms and hurricanes in the Atlantic and eastern Pacific and issues their forecasts, watches, warnings and public advisories.
National Risk IndexRisk: The National Risk Index is a FEMA dataset that rates natural hazard risk for counties and Census tracts in all 50 states and DC. It covers 18 hazards, including hail, hurricane, strong wind and tornado, combining expected annual loss with social vulnerability and community resilience.Source: FEMA
National Weather ServiceOrganizations: The National Weather Service (NWS) is the US government agency, part of NOAA, that issues weather, water and climate forecasts and warnings to protect life and property. Local forecast offices, backed by regional and national centers, cover the whole country and its territories.Source: National Weather Service
Natural hazard riskRisk: Natural hazard risk is the chance of loss from natural events such as hail, hurricanes, tornadoes, wildfires and floods. It depends on how often the hazard occurs, how much property and how many people are exposed, and how vulnerable they are.
NCEIOrganizations: The National Centers for Environmental Information (NCEI) is NOAA's archive of weather, climate, ocean and geophysical data. It runs the public Storm Events Database, which holds National Weather Service Storm Data records from 1950 on.Source: NOAA National Centers for Environmental Information
NDL roof warrantyRoofing and building: An NDL (no dollar limit) roof warranty is a manufacturer's warranty on a whole roof system that pays for covered leak repairs with no cap on cost. It requires a manufacturer-approved installer and usually excludes storm damage, such as hail and high wind, unless added.
NEXRADHail and wind: NEXRAD is the U.S. network of WSR-88D Doppler weather radars run by the National Weather Service, the FAA and the Air Force, with archived data free from NOAA. The beam rises with distance, so far from a radar it misses what happens near the ground.Source: NOAA National Centers for Environmental Information, NOAA JetStream
NFIPCoverage: The National Flood Insurance Program (NFIP) is the federal flood insurance program managed by FEMA, available in communities that adopt floodplain management rules. Buildings in high-risk flood areas with government-backed mortgages must carry flood insurance; policies usually take effect after a 30-day wait.Source: FEMA
Nickel-size hailHail and wind: Nickel-size hail is hail about 7/8 inch (22 mm) across. It is just under the 1-inch (quarter) size at which the National Weather Service calls hail severe.Source: NOAA National Weather Service, NOAA National Weather Service, NOAA Storm Prediction Center
NOAAOrganizations: The National Oceanic and Atmospheric Administration (NOAA) is the federal science agency for weather, climate, oceans and coasts, part of the Department of Commerce. Its National Weather Service issues forecasts and severe weather warnings.
Non-combustible constructionCoverage: Non-combustible construction is a building whose exterior walls, floors and supports are made of metal, gypsum or other materials that do not burn. In ISO's construction classes used to rate commercial property, it is class 3, between joisted masonry and masonry noncombustible.Source: IRMI
Non-recoverable depreciationClaims: Non-recoverable depreciation is depreciation subtracted from a claim payment that the insurer will not pay back after repairs are done, as under actual cash value coverage. Under replacement cost coverage, held-back depreciation is usually recoverable once the work is complete.
NonrenewalCoverage: Nonrenewal is an insurer's decision not to renew a policy when its term ends. State laws usually require the insurer to send written notice a set number of days before expiration, and many require it to give the reason.

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Office building insuranceCoverage: Office building insurance is the property and liability coverage an office building owner carries: the building and its systems, rental income lost after covered damage, and liability for injuries to tenants and visitors.
Office of Public Insurance CounselOrganizations: The Office of Public Insurance Counsel (OPIC) is an independent Texas state agency that represents the interests of insurance consumers. It reviews insurance rates, rules and policy forms and can take part in rate hearings before the Texas Commissioner of Insurance.Source: Office of Public Insurance Counsel
Oklahoma Insurance DepartmentOrganizations: The Oklahoma Insurance Department (OID) is the state agency that enforces Oklahoma's insurance laws, regulates the insurance industry, helps consumers with policy problems and investigates insurance fraud. It is a regulator, not an insurance company.Source: Oklahoma Insurance Department
Open perilsCoverage: Open perils coverage insures against loss from any cause not specifically excluded, unlike named perils coverage, which covers only the causes it lists. It was long called all risks, a name dropped because it suggested broader coverage than policies give.
Ordinance or law coverageCoverage: Ordinance or law coverage pays the extra costs building codes add after a covered loss: the value of undamaged parts that must be torn down, the cost to demolish them, and the higher cost to rebuild to current code. Standard property forms exclude these.Read more
Overhead and profitClaims: Overhead and profit (O&P) is a general contractor's charge for running the business and the job, plus profit, added to a repair estimate. Claim estimates usually include it when the repairs need a general contractor to coordinate several trades.Read more

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Parametric insuranceCoverage: Parametric insurance pays a set amount when a measured event crosses an agreed trigger at a location, such as a wind speed, rainfall total or hurricane category, instead of paying for the damage actually assessed.
Parapet wallRoofing and building: A parapet wall is the part of a building's perimeter wall that rises above the roof, usually topped with coping. Where it meets the roof, flashing and counterflashing seal the joint against water.
Partial denialClaims: A partial denial is an insurer's decision to pay part of a claim and refuse the rest, usually in a letter that names the policy terms it relies on for the refused part.
PCS catastrophe serial numberClaims: A PCS catastrophe serial number is the ID Property Claim Services (PCS) gives a U.S. event that causes more than $25 million in insured property losses and affects many policyholders and insurers. Insurers and reinsurers use it to tie claims to one event.Source: Verisk
Pea-size hailHail and wind: Pea-size hail is hail about 0.25 inch (6 mm) across, the smallest size on the National Weather Service hail size chart and well below the 1-inch size that makes a storm severe. It usually does little damage.Source: NOAA National Weather Service, NOAA Storm Prediction Center
Peak gustHail and wind: A peak gust is the highest instantaneous wind speed recorded at a site over a set period, such as an hour, a day or a storm. It is higher than the sustained wind speed, which is an average over time.
Penny-size hailHail and wind: Penny-size hail is hail about 0.75 inch (19 mm) across. It is smaller than the 1 inch (quarter size) hail the National Weather Service uses as its minimum for a Severe Thunderstorm Warning.Source: NOAA National Weather Service, NOAA National Weather Service
Per occurrence limitCoverage: A per occurrence limit is the most a policy pays for all losses from a single occurrence, such as one storm, however many claims it produces. Property policies show it as the limit of insurance in the declarations.
Percentage deductibleCoverage: A percentage deductible is set as a percent of the insured value rather than a flat dollar amount: on a building insured for $300,000, a 5 percent deductible is $15,000. It is common for wind, hail and hurricane losses.Source: Insurance Information Institute
Period of restorationCoverage: The period of restoration is the time business income and extra expense coverage pays for after covered physical damage. It usually begins after a short waiting period and ends when the property should be repaired or replaced with reasonable speed.
Photo date stampInspection: A photo date stamp is the date and time a picture was taken, usually stored in the file's EXIF metadata. Camera clocks can be wrong and older EXIF dates carry no time zone, so a stamp alone may not settle when a photo was taken.
Photo metadataInspection: Photo metadata is information stored inside an image file, such as EXIF tags for camera settings, capture time, GPS position and camera direction. GPS time is recorded in UTC, while capture times often lack a time zone.
Physical climate riskRisk: Physical climate risk is the risk of damage and loss from the physical effects of climate change. It can be sudden, such as floods, hurricanes and wildfires, or gradual, such as sea level rise and rising temperatures.
Ping-pong-ball-size hailHail and wind: Ping-pong-ball-size hail is hail about 1.5 inches (38 mm) across, between quarter and golf ball size, and the same size as walnut hail on National Weather Service hail charts.Source: NOAA National Weather Service
Policy management softwareSoftware: Policy management software, also called a policy administration system, is the core system an insurer uses to quote, rate, underwrite, issue and service policies over their life. It is often sold together with billing and claims systems.
Policy periodCoverage: The policy period is the time an insurance policy is in force, from its effective date and hour to its expiration date and hour. The dates appear on the declarations page and on certificates and evidence of insurance.
Polyiso insulationRoofing and building: Polyiso insulation is rigid polyisocyanurate foam board with facers on both sides. It is widely used as insulation in low-slope roofs, often under a cover board and the roof membrane.
Ponding waterRoofing and building: Ponding water is water that stays in low spots on a roof more than 48 hours after rain, in weather that allows drying, as NRCA defines it. It adds weight, wears the roof covering faster and usually points to poor slope or blocked drains.Source: National Roofing Contractors Association
Post-storm inspectionInspection: A post-storm inspection is an extra roof and building check after severe weather such as a hurricane, tornado or hailstorm, to find and record damage. Hail inspections often happen days to months after the storm, and dents in soft metal help confirm impacts.
Pre-acquisition inspectionInspection: A pre-acquisition inspection checks a commercial building's physical condition before a purchase, often as a property condition assessment under ASTM E2018. It finds material physical deficiencies, estimates repair costs, and reflects conditions only at the time of the site visit.Source: ASTM International
Pre-existing damageClaims: Pre-existing damage is damage or wear present on a property before the loss being claimed, such as old leaks, earlier storm damage or deterioration. A property policy pays for damage caused by the covered event, so a claim may require separating new damage from old.
Pre-loss documentationInspection: Pre-loss documentation is a record of a property's condition and contents made before any damage: dated photos, video, an inventory with values and receipts. It helps show what existed, and in what condition, if a claim comes later.
Pre-loss inspectionInspection: A pre-loss inspection records a building's condition in dated notes and photos before a storm or other loss, so damage from a later event can be told apart from wear, aging and older damage.Read more
Predictive maintenanceSoftware: Predictive maintenance schedules work based on the measured condition of equipment rather than a fixed calendar, using tools such as vibration analysis, infrared thermography and oil analysis to catch problems before a failure.
Preventive maintenanceInspection: Preventive maintenance is planned inspection, cleaning, adjustment and minor repair of a building's equipment and systems on a set schedule, to prevent failures rather than react to them. For roofs, NRCA recommends inspections at least twice a year, preferably in spring and fall.Source: Professional Roofing, NRCA
Private flood insuranceCoverage: Private flood insurance is flood coverage written by a private insurer instead of the National Flood Insurance Program (NFIP). Policies can offer higher limits or extra coverage, and lenders can accept them in place of NFIP coverage when they meet federal standards.
Probable maximum lossRisk: Probable maximum loss (PML) is an estimate of how large a loss could get at a chosen probability. Catastrophe models give it for a return period, such as a once-in-a-century storm. In fire loss control, it is the largest loss expected at one site.Read more
Proof of lossClaims: A proof of loss is the insured's formal, usually sworn, statement of a property claim: what was damaged and how much is claimed. The standard ISO commercial property form, CP 00 10, requires it within 60 days after the insurer asks.Source: Insurance Services Office (copy hosted by Independent Insurance Agents of Texas) · Read more
Property and casualty insuranceCoverage: Property and casualty insurance is the shared name for two related lines: property insurance, which pays for damage to the insured's own property and the income it loses, and casualty insurance, which covers the insured's legal liability for harm to others.
Property condition assessmentInspection: A property condition assessment (PCA) is a walk-through survey, document review and interviews that find a commercial building's material physical deficiencies and estimate what fixing them will cost. ASTM E2018 sets the baseline process, and the result is a property condition report.Source: ASTM International · Read more
Property data platformSoftware: A property data platform gathers property records, such as tax rolls, deeds, liens and parcel maps, from many local sources, standardizes them and licenses access. Users can look up ownership, building details and history across many properties at once.
Property due diligenceInspection: Property due diligence is the investigation a buyer or lender makes before a commercial real estate deal. It often includes a property condition assessment (ASTM E2018), a Phase I environmental site assessment (ASTM E1527-21), and title, zoning and lease review.Source: ASTM International, ASTM International
Property inspection softwareSoftware: Property inspection software is a phone or tablet app for recording a property's condition on site, with photos for each finding, and sending the results to a central database for scoring, review and reports.Read more
Property management softwareSoftware: Property management software runs a property's daily operations, such as leasing, rent collection, maintenance requests, tenant portals and accounting, and reports on occupancy and finances for managers, owners and investors.
Property risk managementRisk: Property risk management is the work of finding how buildings, contents and the income they produce could be lost, then deciding how to handle each exposure: avoid it, control it, retain it, or transfer it by contract or insurance.Read more
Protective safeguards endorsementCoverage: A protective safeguards endorsement makes keeping listed fire protection, such as automatic sprinklers or a monitored fire alarm, a condition of the policy. If a listed system is not kept working, or a known impairment goes unreported, the insurer can refuse a resulting fire loss.
Public adjusterClaims: A public adjuster is a licensed adjuster whom the policyholder hires to prepare, document and settle a property insurance claim on the policyholder's behalf. The fee is usually a percentage of the claim payment.
Public adjuster vs independent adjusterClaims: The difference is who hires and pays them: an independent adjuster is hired by an insurer to adjust claims on its behalf, while a public adjuster is hired and paid by the policyholder to represent the policyholder in the claim.
Public protection classificationCoverage: Public Protection Classification (PPC) is ISO's 1 to 10 rating of a community's fire protection, where 1 is best. It scores the fire department, water supply and emergency communications, and most property insurers use it in setting premiums.Source: Texas Department of Insurance
PVC roofRoofing and building: A PVC roof is a single-ply membrane made of polyvinyl chloride, a plastic made flexible with plasticizers, used mainly on low-slope roofs. Its seams are joined by heat welding.

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Quarter-size hailHail and wind: Quarter-size hail is hail 1.00 inch (25 mm) across, the width of a US quarter. It is the National Weather Service line for severe hail, and since January 5, 2010, the smallest size that brings a Severe Thunderstorm Warning.Source: NOAA National Weather Service, NOAA Storm Prediction Center, NOAA National Weather Service, via NOAA Storm Prediction Center · Read more

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Recorded statementClaims: A recorded statement is an insured's or witness's spoken account of a loss that an insurer records, often by phone, while investigating a claim. It is less formal than an examination under oath, which is sworn and usually taken down by a court reporter.
Recoverable depreciationClaims: Recoverable depreciation is the depreciation an insurer holds back from the first, actual cash value payment on a replacement cost claim and pays once the property is repaired or replaced. If the work is never done, it is generally not paid.Read more
ReinsuranceCoverage: Reinsurance is insurance for insurance companies: for a premium, a reinsurer takes on part or all of the risk a primary insurer, called the ceding company, took on under its policies.
Remaining useful lifeRoofing and building: Remaining useful life (RUL) is the estimated number of years a building system, such as a roof, has left before it needs replacement. It is usually the system's expected useful life minus its effective age, which reflects its condition rather than its actual age.
Rental value coverageCoverage: Rental value coverage pays the rent an owner loses, plus expenses that continue, while covered damage leaves all or part of a building unfit to rent. It is usually part of business income coverage and can include the rental value of space the owner uses.
Reopened claimClaims: A reopened claim is a claim the insurer closed and then opens again, usually at the policyholder's request, for additional costs of damage already reported. Policy terms or state law may limit how long after the loss a claim can be reopened.
Replacement cost valueCoverage: Replacement cost value (RCV) is the cost to repair or replace damaged property with new materials of like kind and quality, with no deduction for depreciation. Many policies pay actual cash value first and the rest once repairs are done.
Reservation of rights letterClaims: A reservation of rights letter is an insurer's written notice that a claim may not be covered, in whole or in part, and that the insurer is investigating while keeping its right to deny coverage later based on what it finds.
Reserve studyInspection: A reserve study is a long-range budget plan for a community association, such as a condo or HOA. It lists the shared components the association must repair or replace, compares their cost with the reserve fund, and sets a plan to pay for the work.Read more
ResilienceRisk: Resilience is the ability of a building, business or community to prepare for hazards, adapt to changing conditions, and withstand and recover quickly from disruptions such as severe storms.
Retail property insuranceCoverage: Retail property insurance covers buildings such as shopping centers, strip malls and stand-alone stores, often in a package with business income and liability coverage. Properties with past losses, vacancy or older construction are sometimes placed in the excess and surplus lines market.
Return periodHail and wind: A return period is the average time between events of a given size at a place. A 100-year flood has a 1% chance of happening in any year, so it can happen in back-to-back years.Source: FEMA
Risk appetiteRisk: Risk appetite is the amount and kind of risk an organization is willing to accept in pursuit of its goals. In insurance buying, it shapes how much loss the organization keeps itself rather than transferring to an insurer.
Risk assessmentRisk: A risk assessment identifies the hazards a property or business faces and what could happen if one occurs. It also looks for weak points, such as an aging roof or missing fire sprinklers, that would make damage worse.
Risk avoidanceRisk: Risk avoidance handles a risk by not taking it on at all: not doing the activity, or not owning the property, that creates it. An investor who passes on a building in a flood zone avoids that building's flood risk.
Risk engineering reportInspection: A risk engineering report is an insurer's written findings from an engineer or loss control specialist who inspected a building and its operations, usually for larger commercial accounts. It describes the hazards found and often lists recommendations the insurer expects the owner to complete.
Risk managementRisk: Risk management is the process of finding and analyzing the ways an organization could suffer loss and limiting the financial effect of those losses, through loss prevention, contracts, insurance or retaining the risk.
Risk management information systemSoftware: A risk management information system (RMIS) is software that gathers an organization's claims, policies, property values, certificates of insurance and other risk data in one place, so risk managers can track losses, spot trends and run reports.Read more
Risk management softwareSoftware: Risk management software collects an organization's claims, policies, exposures and property values in one system so risk managers can analyze losses, report on them, allocate costs and make insurance decisions. The insurance-focused kind is called a risk management information system (RMIS).Read more
Risk managerRisk: A risk manager is the person who oversees how an organization handles its risks of loss. The work covers finding and measuring risks, choosing how to treat each one, such as avoiding, reducing, retaining or insuring it, and carrying out and reviewing those choices.
Risk mitigationRisk: Risk mitigation is any step that lowers how often losses happen or how severe they are, such as stronger construction, fire protection, maintenance or inspections. For natural hazards it is called hazard mitigation: lasting action that reduces long-term risk to people and property.
Risk registerRisk: A risk register is an organization's central record of its risks and what is known about each one, such as its likelihood, impact, owner, and whether it is accepted or being reduced. It is kept up to date as risks change.
Risk retentionRisk: Risk retention is keeping part of a risk on purpose and paying those losses from one's own funds, through deductibles, self-insured retentions, self-insurance or a captive, instead of transferring them to an insurer. Retaining more usually lowers the premium.Read more
Risk toleranceRisk: Risk tolerance is how much risk, or swing in results, an organization is willing to bear to pursue its goals. In insurance, a higher risk tolerance often shows in higher deductibles or self-insured retentions.
Risk transferRisk: Risk transfer is a risk management technique that shifts the financial cost of a loss to another party. It works two ways: by buying insurance, or through a contract such as a hold harmless clause in a lease or construction contract.Read more
Roof certificationInspection: A roof certification is a signed statement from a roofer or inspector on a roof's material, age, condition and expected remaining life. Insurers, buyers and lenders use it to judge whether a roof is acceptable to insure or finance.
Roof coatingRoofing and building: A roof coating is a liquid applied over an existing roof surface that cures into a film protecting it from weather and sunlight. Coatings are often used to extend the life of a sound low-slope or metal roof without tearing it off.
Roof condition reportInspection: A roof condition report records a roof's covering type, age, estimated remaining life, overall condition and any visible damage or leaks as of the inspection date, usually with photos. Insurers and buyers use these reports to judge a roof's risk.
Roof copingRoofing and building: Roof coping is the cap on top of a parapet or other wall, usually metal, masonry or stone, sloped to shed water. Loose, bent or missing coping is a common sign of wind damage.
Roof core sampleRoofing and building: A roof core sample (core cut) is a small piece cut through a low-slope roof to show how it is built and whether it is wet. It reveals the membrane and surfacing, the approximate number of plies, the insulation and its condition, and the deck.Read more
Roof deckRoofing and building: The roof deck is the structural surface, such as metal, concrete, gypsum or wood panels, that spans the roof framing and supports the roof system laid on top of it. Decks are either noncombustible or combustible.
Roof drainRoofing and building: A roof drain is an outlet that collects water from a roof and carries it into a leader or downspout. On low-slope roofs, overflow drains or scuppers carry water off if the main drains clog, so water cannot pond and overload the roof.
Roof flashingRoofing and building: Roof flashing is the material that seals a roof where the covering stops or is interrupted: at edges, walls, penetrations, drains, valleys and expansion joints. Base flashing turns the roof covering up the wall; counterflashing covers the top of the base flashing.
Roof inspection softwareSoftware: Roof inspection software records and manages roof inspections: photos, defects, measurements and condition ratings tied to a roof plan. Some tools also turn drone photos into a measurable 3D roof model that an inspector can review instead of walking the roof.Source: Clemson University, EPiC Series in Built Environment · Read more
Roof life expectancyRoofing and building: Roof life expectancy, or estimated useful life, is the number of years a roof system is expected to last with normal upkeep. It depends mostly on the roof type, and also on installation quality, climate and maintenance.
Roof membraneRoofing and building: A roof membrane is the flexible waterproof layer that forms the covering on most low-slope roofs. Single-ply membranes such as TPO, PVC and EPDM go down as one sheet; built-up and modified bitumen membranes use several plies.
Roof moisture surveyRoofing and building: A roof moisture survey is a nondestructive test that maps water trapped inside a low-slope roof, using infrared imaging or electrical impedance scanners, with core samples to confirm. Wet insulation loses insulating value and can lead to early roof failure.
Roof recover vs roof replacementRoofing and building: A roof recover installs a new covering over the existing roof; a replacement tears the old roof off, repairs the deck and installs a new one. The International Building Code bars recovering wet or deteriorated roofs, tile or slate, or roofs with two layers already.Source: International Code Council, via UpCodes
Roof squareRoofing and building: A roof square is a unit of roof area equal to 100 square feet (9.3 square meters), or the material needed to cover it. Hail assessments count damaged shingles per square; a 30-square roof covers 3,000 square feet.Source: National Roofing Contractors Association, Proceedings of the North American Conference on Roofing Technology
Roof surfacing payment scheduleCoverage: A roof surfacing payment schedule is a policy endorsement that limits payment for wind or hail damage to a roof to a percentage of its replacement cost, based on the roof's age and material. The percentage falls as the roof gets older.
Roof tear-offRoofing and building: A roof tear-off removes the existing roof covering down to the deck, repairs damaged substrate and installs a new covering. Building codes require a tear-off instead of a recover when the old roof is water-soaked, deteriorated or already has two or more coverings.Source: International Code Council, via UpCodes
Roof-to-wall connectionRoofing and building: A roof-to-wall connection is the hardware joining roof rafters or trusses to the walls, part of the continuous load path that carries wind uplift down to the foundation. Metal straps or ties hold better against uplift than toe-nails alone.
Roofing permitRoofing and building: A roofing permit is approval from the local building department to replace or re-cover a roof. The application usually lists the roofing materials and specifications, and inspectors check the work against the local building code.
Rooftop unitRoofing and building: A rooftop unit (RTU) is a packaged HVAC system in one factory-sealed cabinet, usually on the roof, that heats, cools and ventilates a building through ductwork. RTUs typically last 15 to 20 years, and hail commonly damages their condenser coils and fan blades.Source: National Laboratory of the Rockies, HVAC Resource Map, Insurance Institute for Business & Home Safety · Read more

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Saffir-Simpson scaleHail and wind: The Saffir-Simpson Hurricane Wind Scale rates hurricanes Category 1 (74 mph sustained) to Category 5 (157 mph or higher) by maximum sustained wind alone, not storm surge, rain flooding or tornadoes. Category 3 (111 mph) and above are major hurricanes.Source: NOAA National Hurricane Center · Read more
Schedule ratingCoverage: Schedule rating adjusts a commercial policy's base rate with credits or debits for one risk's features, such as building condition, upkeep, management and loss controls, so a well-kept property can pay less than the manual rate.
Scope of lossClaims: A scope of loss is the adjuster's detailed list of damage on a claim: what is damaged, how badly, the quality of materials and the measurements needed to figure quantities. It comes before pricing; the estimate adds costs to the scope.
ScupperRoofing and building: A scupper is an opening through a parapet wall or raised roof edge, usually lined with sheet metal, that drains water off a roof. It can be a primary drain or an overflow that lets water out if the main drains clog.
Seal stripRoofing and building: A seal strip is the line of adhesive on an asphalt shingle that, once warmed by the sun, bonds it to the shingle below and holds it flat in wind. Shingles that lose this bond, called unsealing, lift and blow off more easily.
Secondary water resistanceRoofing and building: Secondary water resistance (SWR), or a sealed roof deck, is a seal or extra layer over the roof deck that limits rain entry if wind strips off the roof covering.Read more
Segregation of damagesClaims: Segregation of damages is separating the damage a covered cause of loss caused from damage due to other causes, such as wear, deterioration or earlier events. Where covered and uncovered causes combine, courts in some states put the burden of this split on the insured.
Self-insured retentionCoverage: A self-insured retention (SIR) is the amount of each loss, including defense costs, that the insured pays itself before a liability policy responds. Under a deductible, by contrast, the insurer pays the claim first and then bills the insured back.
Self-storage insuranceCoverage: Self-storage insurance is a package of commercial coverages for storage facility operators: building and business property, business income, equipment breakdown and general liability, plus storage-specific liability for customers' stored goods and for selling or disposing of a tenant's goods in error.
Severe convective stormHail and wind: A severe convective storm (SCS) is a thunderstorm strong enough to cause damage through hail, straight-line wind or tornadoes, alone or together. Insurers and catastrophe modelers use the term to group these losses, which often come from many storms in one outbreak.Read more
Severe hailHail and wind: Severe hail is hail 1 inch (quarter size) or larger in diameter, the size at which the National Weather Service classes a thunderstorm as severe.Source: NOAA Storm Prediction Center
Severe thunderstorm warningHail and wind: A severe thunderstorm warning is a National Weather Service alert that radar or a spotter shows a storm with hail 1 inch or larger or winds of 58 mph or more. The local NWS office issues it, usually for one hour.Source: NOAA National Weather Service
Severe thunderstorm watchHail and wind: A severe thunderstorm watch means conditions favor storms with hail 1 inch or larger, winds of 58 mph or more, or tornadoes in and near the watch area. The Storm Prediction Center issues it, usually for a large area covering many counties.Source: NOAA National Weather Service, NOAA Storm Prediction Center, NOAA National Severe Storms Laboratory
Sewer backup coverageCoverage: Sewer backup coverage pays for damage from water that backs up through sewers or drains or overflows from a sump. Standard property forms usually exclude this water, so the coverage is added by endorsement, and it typically does not cover flood.
Shared and layered property programCoverage: A shared and layered property program builds a large property limit from several insurers' policies: each layer sits above the limits below it, and several insurers can split one layer, each paying its share of the loss in that layer.
Shelf cloudHail and wind: A shelf cloud is a low, wedge-shaped cloud along a thunderstorm's gust front, attached to the base of the storm above it. Its underside often looks layered and turbulent, and strong gusts usually arrive as it passes overhead.
Shingle blow-offRoofing and building: Shingle blow-off is wind lifting asphalt shingles or tabs until they crease, tear or come off, usually starting at corners, eaves, rakes and ridges where uplift is highest. Shingles that have lost their sealant bond fail far more easily.
Significant severe hailHail and wind: Significant severe hail is hail 2 inches (hen egg size) or larger in diameter, the Storm Prediction Center's threshold for a significant severe thunderstorm. The same definition includes wind gusts of 75 mph or more and EF2 or stronger tornadoes.Source: NOAA Storm Prediction Center, NOAA National Weather Service
Single-purpose entityCoverage: A single-purpose entity (SPE) is a company formed to own and operate one property and do nothing else, which keeps the property apart from the debts and bankruptcy risk of related businesses. Commercial real estate lenders often require borrowers to be SPEs.
SkylightRoofing and building: A skylight is a glazed unit set in a roof opening to let in daylight while keeping weather out. Building codes treat glazing sloped 15 degrees or more from vertical as a skylight.Source: Federal Emergency Management Agency
Soft metalsRoofing and building: Soft metals are thin metal parts on and around a building, such as gutters, downspouts, roof vents, flashing and air conditioner fins, that dent easily in hail. Their dents show a property was hit by hail but give only a rough idea of hailstone size.
Softball-size hailHail and wind: Softball-size hail is hail about 4 inches (102 mm) across. Hail 2 to 4 inches across falls at an estimated 44 to 72 mph.Source: NOAA Storm Prediction Center, NOAA National Severe Storms Laboratory
Spatter marksRoofing and building: Spatter marks are spots where hailstones knocked dirt, oxidation, algae or other buildup off a surface, leaving cleaner marks. They typically fade within about a year, depending on exposure and climate, and larger hail leaves larger marks.Source: Professional Roofing, NRCA
SPC convective outlookHail and wind: An SPC convective outlook is the Storm Prediction Center's severe thunderstorm forecast for Days 1 to 3, rated from 1 (Marginal) to 5 (High) by the chance of severe weather within 25 miles of a point. A separate outlook covers Days 4 to 8.Source: NOAA Storm Prediction Center
SPC storm reportHail and wind: An SPC storm report is a preliminary tornado, hail or damaging wind report that the NOAA Storm Prediction Center maps each day from National Weather Service local storm reports. The reports are unverified; official records come later in NOAA's Storm Data.Source: NOAA Storm Prediction Center
Special flood hazard areaHail and wind: A Special Flood Hazard Area (SFHA) is land a FEMA flood map shows in Zone A or V, with a 1% chance of flooding in any year. NFIP floodplain rules apply there, and so does the mandatory purchase of flood insurance for federally backed mortgages.Source: FEMA, FEMA
Special form coverageCoverage: Special form coverage insures property against any cause of loss the policy does not specifically exclude. Also called open perils or all risks coverage, it is broader than basic or broad form coverage, which cover only the causes they list.
Spray foam roofRoofing and building: A spray polyurethane foam (SPF) roof is a seamless roof formed in place by spraying two liquids that react into a rigid, fully adhered, insulating foam. A coating over the foam protects it from sunlight and weather.Read more
Squall lineHail and wind: A squall line is a line of thunderstorms, solid or broken, along with their rain. Squall lines often bring damaging straight-line winds over a wide area as they pass.
Staff adjusterClaims: A staff adjuster is a claims adjuster employed directly by the insurance company, as opposed to an independent adjuster the insurer hires on contract. The insurer pays the staff adjuster; the policyholder does not.
Standing seam metal roofRoofing and building: A standing seam metal roof uses metal panels joined at raised seams, formed by turning up the edges of neighboring panels and folding or locking them together. The fasteners are usually hidden under the seams instead of piercing the roof surface.
Stated valueCoverage: Stated value, or stated amount, is a way of valuing insured property, mostly vehicles, in which the owner names its worth and the premium is based on that amount. After a loss, the insurer pays the lesser of the stated amount or actual cash value.
Statement of valuesCoverage: A statement of values (SOV) is a schedule of every insured location and building with the value of each kind of property there and how it is valued. Insurers use it to underwrite and price a commercial property policy and to set its limits.Read more
Statute of limitations for insurance claimsClaims: A statute of limitations is a law that sets how long a person has to file a lawsuit, including a suit over an insurance claim. The period varies by state and type of claim, and many property policies also set their own deadline for suits.
Steep-slope roofRoofing and building: A steep-slope roof is pitched steeper than 3:12 (about 14 degrees) and uses water-shedding coverings such as shingles, tile, slate or metal panels. Low-slope roofs usually need waterproof membranes instead.Source: National Roofing Contractors Association
Storm damage inspectionInspection: A storm damage inspection examines a roof and building to find the cause and extent of wind or hail damage and tell it apart from aging and normal wear. It usually starts with storm reports for the date and the roof's age and maintenance history.
Storm DataHail and wind: Storm Data is NOAA's official monthly record of significant storms and unusual weather, compiled from National Weather Service reports, with paths, deaths, injuries and estimated damage. It reaches NCEI's Storm Events Database 75 to 90 days after month end, and damage figures are broad estimates.Source: NOAA National Weather Service, NOAA National Centers for Environmental Information
Storm Events databaseHail and wind: The Storm Events Database is NOAA's searchable archive of US storms that caused deaths, injuries, significant damage or disruption to commerce, from January 1950 on. Each month posts 75 to 90 days after it ends, and damage figures are broad estimates.Source: NOAA National Centers for Environmental Information, NOAA National Centers for Environmental Information · Read more
Storm Prediction CenterOrganizations: The Storm Prediction Center (SPC) is the National Weather Service center that forecasts severe thunderstorms and tornadoes for the contiguous U.S. and issues severe thunderstorm and tornado watches.
Storm surgeHail and wind: Storm surge is an abnormal rise of seawater above the normal tide, pushed ashore mainly by a storm's winds. Combined with the tide, it can flood coastal property well inland and is a major source of hurricane damage.
Storm surveyHail and wind: A storm survey is a National Weather Service check of damage after severe weather to decide whether a tornado or straight-line winds caused it. For a tornado, the survey sets its Enhanced Fujita rating and path; for wind, it estimates the speed.
Storm tracking softwareSoftware: Storm tracking software maps where storms have been, where they are and where they are headed, using radar and other weather data, and after a storm shows where hail or damaging wind likely fell.
Straight-line windsHail and wind: Straight-line winds are thunderstorm winds that blow without rotation, a term used mainly to set them apart from tornado winds. They include downbursts and the long, wide wind swaths of derechos.
Strengthen Alabama HomesRisk: Strengthen Alabama Homes is an Alabama Department of Insurance program that grants up to $10,000 to bring owner-occupied single-family homes up to the IBHS FORTIFIED Roof standard. Rentals, townhomes, condominiums and mobile homes are not eligible.Source: Alabama Department of Insurance
StuccoRoofing and building: Stucco is portland cement plaster applied to exterior walls by hand or machine, over metal lath or solid bases such as masonry or concrete. ASTM C926 is the standard for applying it.Source: ASTM International
SublimitCoverage: A sublimit caps what a policy pays for one kind of loss or property, such as flood or earthquake. It sits inside the policy's overall limit rather than adding to it.
SubrogationCoverage: Subrogation is an insurer's right, after it pays a loss, to recover that amount from whoever is legally responsible for it, standing in the insured's place. The right comes from the policy or from law.
SupercellHail and wind: A supercell is a thunderstorm built around a long-lasting rotating updraft that can persist for hours. Supercells produce most of the largest hail and the strongest, longest-lived tornadoes, along with damaging downburst winds.
Supplemental claimClaims: A supplemental claim asks the insurer to pay more on a claim it already adjusted, for added damage or costs from the same loss, such as hidden damage found during repairs. Some state laws set deadlines for filing one.
Surplus lines insuranceCoverage: Surplus lines insurance is coverage from an insurer not licensed in the buyer's state, placed through a surplus lines broker, for risks the standard market will not take. These insurers set their own rates and forms, and state guaranty funds generally do not back them.
Sustained windHail and wind: Sustained wind is wind speed averaged over a set period, as opposed to a brief gust. The National Weather Service averages over two minutes for surface observations, while hurricane categories use a one-minute average.Source: NOAA National Weather Service, NOAA National Hurricane Center
Sustained wind vs wind gustHail and wind: Sustained wind is wind speed averaged over a set period: 2 minutes in NWS observations, 1 minute for US hurricane intensity. A gust is a brief burst above that average; the NWS counts one when speed swings 10 knots or more between peaks and lulls.Source: NOAA National Weather Service, NOAA National Hurricane Center, NOAA National Weather Service · Read more

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Tenant improvements and bettermentsCoverage: Tenant improvements and betterments are fixtures, alterations, installations or additions a tenant pays for in a building it does not own and cannot legally remove. Commercial property forms usually insure the tenant's interest in them as part of its business personal property.
Tennis-ball-size hailHail and wind: Tennis-ball-size hail is hail about 2.5 inches (64 mm) across. It is significant severe hail (2 inches or larger), and NWS severe thunderstorm warnings tag it as a considerable damage threat, just under the 2.75-inch destructive level.Source: NOAA National Weather Service, NOAA Storm Prediction Center, NOAA National Weather Service
Terrorism insuranceCoverage: Terrorism insurance covers losses from acts of terrorism. Under the federal Terrorism Risk Insurance Program, insurers must offer it in their property and casualty policies, on terms like their other coverage, through December 31, 2027; policyholders may decline it.Source: U.S. Department of the Treasury (eCFR)
Test squareRoofing and building: A test square is a 10-by-10-foot (100-square-foot) area an inspector marks on a roof slope to count hail hits. The count helps show whether hail damaged the roof enough to need repair or replacement.Source: Texas Windstorm Insurance Association
Texas Department of InsuranceOrganizations: The Texas Department of Insurance (TDI) is the state agency that regulates insurance in Texas and protects insurance consumers; its commissioner enforces the state's insurance laws. TDI also oversees the Texas workers' compensation system and the State Fire Marshal's Office.Source: Texas Department of Insurance
Texas FAIR Plan AssociationCoverage: The Texas FAIR Plan Association is the state-designated insurer of last resort for homes, condos and other residential property in Texas, open to owners who have been turned down by two insurance companies.Source: Texas Department of Insurance
Texas Prompt Payment ActClaims: The Texas Prompt Payment Act, Subchapter B of Insurance Code Chapter 542, sets claim deadlines for insurers: acknowledge within 15 days, accept or reject within 15 business days of receiving needed items, and pay within 5 business days. Missed deadlines carry interest and attorney's fees.Source: Texas Legislature, Texas Department of Insurance · Read more
TornadoHail and wind: A tornado is a violently rotating column of air extending from a thunderstorm down to the ground. Each tornado is rated on the Enhanced Fujita scale from the damage it causes.
Tornado watch vs warningHail and wind: A tornado watch means conditions favor tornadoes over a wide area, often several counties or states, and comes from the Storm Prediction Center. A tornado warning means a tornado has been seen or shown on radar, and comes from the local National Weather Service office.Source: NOAA National Weather Service
Total cost of riskRisk: Total cost of risk (TCOR) is everything an organization spends because of risk, in one figure: insurance premiums, losses it pays itself such as deductibles, loss control and the cost of running its risk program. It is often stated per $1,000 of revenue.Source: RIMS · Read more
Total insured valueCoverage: Total insured value (TIV) is the combined value of everything a policy insures: buildings, contents, business income and other covered interests. Insurers use it to size and price the risk.
TPO roofRoofing and building: A TPO (thermoplastic olefin) roof is a single-ply membrane made from a blend of polypropylene and ethylene-propylene polymers, with or without reinforcement, and seamed with hot air. It is widely used on low-slope commercial roofs.
TPO vs EPDMRoofing and building: TPO and EPDM are single-ply membranes for low-slope roofs. TPO is a thermoplastic, usually white, whose seams are welded with hot air; EPDM is a synthetic rubber, usually black, whose seams are bonded with primer and tape.Read more
Trained spotterHail and wind: A trained spotter is a volunteer, often in the National Weather Service SKYWARN program, who has taken free NWS training and reports severe weather such as hail, damaging wind and tornadoes. Spotter reports help forecasters issue warnings and feed the official storm record.
Tropical stormHail and wind: A tropical storm is a tropical cyclone with maximum sustained winds of 39 to 73 mph (34 to 63 knots). A tropical storm warning means those winds are expected somewhere in the warning area within 36 hours.Source: NOAA National Hurricane Center
TWIACoverage: The Texas Windstorm Insurance Association (TWIA) sells wind and hail coverage on the Texas coast, where homeowners policies might not cover it. A home or business must be in TWIA's service area, have been turned down by an insurer and have a windstorm inspection certificate.Source: Texas Department of Insurance

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UL 2218Roofing and building: UL 2218 is a lab test that rates steep-slope roof coverings, such as asphalt shingles and metal panels, for impact resistance with dropped steel balls. Class 4, the top rating, means the product still worked after two hits in one spot by 2-inch balls.Source: Insurance Institute for Business & Home Safety, IBHS · Read more
UL StandardsOrganizations: UL Standards & Engagement develops and publishes UL standards for the safety and performance of products, services and systems. Its UL 2218 test rates how well steep-slope roof coverings resist impact from steel balls, using impact energies based on real hailstones.Source: UL Standards & Engagement
Umbrella insuranceCoverage: Umbrella insurance is liability coverage that sits above a business's primary liability policies, such as general liability, auto and employers liability, and pays once their limits are used up. It can also cover some claims they exclude, subject to a self-insured retention.
UmpireClaims: An umpire is the neutral third person in a property policy's appraisal process, deciding the amounts the two appraisers cannot agree on. The appraisers usually choose the umpire, or a court appoints one, and an award agreed by any two of the three is binding.
Underwriting inspectionInspection: An underwriting inspection is an insurer's survey of a property's construction, condition, occupancy and protection to judge the risk. Standard policy conditions let the insurer inspect at any time; inspections bear on insurability and premium, not code compliance.Source: Insurance Services Office (copy hosted by Independent Insurance Agents of Texas)
Utility service interruption coverageCoverage: Utility service interruption coverage pays lost business income when water, wastewater, communication or power service fails because of covered damage to utility property away from the premises. It is usually added by endorsement, which may leave out overhead lines unless they are scheduled.

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Vacancy clauseCoverage: A vacancy clause limits property coverage once a building has been vacant longer than a set period. Losses such as vandalism, water damage and theft are then excluded, and payment for other losses is reduced.
Vacancy permit endorsementCoverage: A vacancy permit endorsement suspends a property policy's vacancy condition, which limits coverage for buildings left vacant, at listed locations for a set period. It can still leave out some losses, such as vandalism or sprinkler leakage.
Vendor insurance complianceRisk: Vendor insurance compliance is checking that vendors and contractors carry the insurance their contracts require, usually by collecting and reviewing certificates of insurance and tracking renewals. It supports contractual risk transfer, which shifts the cost of certain losses to the party doing the work.

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Waiver of subrogationCoverage: A waiver of subrogation gives up an insurer's right to recover what it paid for a loss from a third party who caused it, usually because a lease or other contract requires it. Property policies generally allow waivers made before a loss, not after.
Wall cloudHail and wind: A wall cloud is a lowered, often sharply defined section of cloud hanging from a thunderstorm's rain-free base. Not all rotate, but rotating wall clouds usually form a few minutes to nearly an hour before strong or violent tornadoes.Source: NOAA National Weather Service
Water leak sensorSoftware: A water leak sensor detects water at one spot or along a sensing cable and sends an alarm, often to a building management system or a phone. Sensors are placed at low points and near water heaters, pumps and pipe fittings.
Water mitigationClaims: Water mitigation is the emergency work right after a leak, flood or storm to stop water damage from spreading: extracting water, drying the building and removing wet materials before mold grows. Restorers follow the ANSI/IICRC S500 standard for this work.Source: IICRC
Wear and tear exclusionCoverage: The wear and tear exclusion in property policies removes coverage for wear and tear and related causes such as rust, corrosion, decay, deterioration and hidden defects. Standard forms still pay for resulting loss from certain listed causes, such as fire.
Weather alert serviceSoftware: A weather alert service sends watches and warnings for chosen locations by text, phone call, email, app or radio, often relaying National Weather Service alerts. The most urgent NWS warnings also reach phones automatically as Wireless Emergency Alerts, with no signup.
Wholesale insurance brokerCoverage: A wholesale broker places business for retail agents and brokers with insurers and has no contact with the insured. Managing general agents are wholesalers with authority to bind coverage; surplus lines brokers find coverage but cannot bind it.
WildfireHail and wind: A wildfire is an unplanned fire burning through wildland vegetation such as forest, brush or grass, spreading with wind, terrain and fuel. Buildings where development meets wildland, called the wildland urban interface, are the most exposed.
Wildland-urban interfaceHail and wind: The wildland-urban interface (WUI) is the zone where buildings and other development meet or mix with undeveloped wildland or vegetation, where wildfires can spread from vegetation to structures.
Wind and hail buybackCoverage: A wind and hail buyback, or deductible buyback, is a separate policy that pays all or part of a primary property policy's high wind or hail deductible. It has its own terms and exclusions, which decide which losses it pays.
Wind and hail deductibleCoverage: A wind and hail deductible is a separate deductible that applies when windstorm or hail causes the damage. It is often 1%, 2% or 5% of each damaged building's insured value, not of the loss, and applies to each occurrence.Source: Insurance Services Office (copy hosted by Independent Insurance Agents of Texas), Insurance Information Institute · Read more
Wind and hail exclusionCoverage: A wind and hail exclusion is an endorsement that removes windstorm and hail as covered causes of loss at the locations it lists. It also excludes rain, snow, sand or dust damage that happens only because of the wind or hail.
Wind exposure categoryRoofing and building: Wind exposure category rates the ground upwind of a building for wind design: B for urban, suburban and wooded areas, C for open terrain with scattered obstructions under 30 feet, and D where flat ground or water runs 5,000 feet or more. Otherwise C applies.Source: Federal Emergency Management Agency, Federal Emergency Management Agency
Wind gustHail and wind: A wind gust is a brief, sudden rise in wind speed. The National Weather Service counts gusts when speeds swing at least 10 knots (about 12 mph) between peaks and lulls, and the gust speed is the highest instantaneous speed.Source: NOAA National Weather Service
Wind mitigation inspectionInspection: A wind mitigation inspection records a building's wind-resistant features, such as roof covering, roof deck attachment, roof-to-wall connections and opening protection, so an insurer can apply windstorm premium discounts.Read more
Wind poolCoverage: A wind pool is a state-created insurer of last resort that sells wind-only coverage in designated coastal areas to owners private insurers will not cover. Examples include TWIA in Texas, the Beach Pool in Alabama and the windpool in Mississippi.Source: Insurance Information Institute, Texas Department of Insurance, Alabama Department of Insurance, Mississippi Insurance Department
Wind upliftRoofing and building: Wind uplift is the upward pull wind creates as it flows over a roof, much like lift on an airplane wing, strongest at corners and edges. Roof assemblies are tested and rated for how much uplift pressure they resist.
Wind-borne debris regionRoofing and building: A wind-borne debris region is the part of a hurricane-prone region where codes require impact-resistant or protected glazing: basic wind speeds of 140 mph or more, or 130 mph or more within 1 mile of the mean high-water line with Exposure D upwind.Source: Federal Emergency Management Agency, Federal Emergency Management Agency
Windstorm inspectionInspection: A windstorm inspection checks that new construction, roof replacements and major repairs meet building code wind requirements. In Texas, coastal work needs one for the certificate most properties need for TWIA coverage: a WPI-8 for work inspected during construction, a WPI-8-E for completed work.Source: Texas Department of Insurance
Windstorm insuranceCoverage: Windstorm insurance pays for wind and hail damage, including damage from hurricanes, tornadoes and thunderstorms. Most property policies include it, but along hurricane coasts insurers often leave wind out, and owners buy a separate wind-only policy, often from a state plan.Read more
Winter stormHail and wind: A winter storm is a weather event with significant snow, ice, sleet or blowing snow, alone or combined. Local National Weather Service offices set their own warning criteria, so the snowfall that triggers a winter storm warning varies by region.
WPI-8Coverage: WPI-8 is the certificate the Texas Department of Insurance issues when a building, repair or addition on the Texas coast passes windstorm inspection. TWIA requires one before it insures a structure, and insurers can look certificates up. Related forms are the WPI-8E and WPI-8C.Source: Texas Department of Insurance, Texas Department of Insurance · Read more

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100-year floodHail and wind: A 100-year flood, also called the base flood, is a flood with a 1% chance of being equaled or exceeded in any given year at a location. It is the standard behind federal flood maps, high-risk flood zones and flood insurance purchase requirements.Source: FEMA Emergency Management Institute · Read more