Insurance Documentation and Claims Flashcards
6 cards from real Flood Restoration practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Documentation and Claims flashcards as text
What is a 'supplement' in the context of an insurance restoration claim?
Answer: An additional estimate submitted when the original scope is found to be incomplete after work begins
A supplement is an amended estimate submitted to the insurance company when additional damage or necessary work is discovered after the original scope was approved.
What is the purpose of an 'Assignment of Benefits' (AOB) in flood restoration claims?
Answer: Transfer the right to collect insurance payments from the policyholder to the contractor
An Assignment of Benefits allows the policyholder to assign their insurance claim rights to the restoration contractor, who then deals directly with the insurer for payment.
Which federal program provides flood insurance to most US homeowners since private insurers often exclude flood damage?
Answer: National Flood Insurance Program (NFIP)
The National Flood Insurance Program (NFIP), administered by FEMA, provides federally backed flood insurance because standard homeowner policies typically exclude flood damage.
What does 'depreciation holdback' mean in an insurance claim?
Answer: The portion of an RCV claim withheld until repairs are completed and verified
Depreciation holdback is the amount withheld from the initial RCV payment that is released to the policyholder after proof of completed repairs is submitted.
What is required to release depreciation holdback to a policyholder after flood restoration?
Answer: Proof of completed repairs such as final invoices and completion documentation
The insurer releases the depreciation holdback when the policyholder provides documentation proving that the restoration repairs have been completed, typically final paid invoices.
What is the role of a 'public adjuster' in a flood restoration claim?
Answer: A licensed professional hired by the policyholder to negotiate the claim on their behalf
A public adjuster is a licensed claims professional hired by the property owner, not the insurer, to represent the policyholder's interests and maximize the claim settlement.