Insurance Documentation and Claims Flashcards

What is a 'scope of loss' document in flood restoration insurance claims?

Answer: A detailed itemized list of all damage, required repairs, and associated costs

A scope of loss is a comprehensive, itemized document describing all flood damage, restoration procedures required, and associated line-item costs used to process the insurance claim.

Which software platform is most commonly used by flood restoration contractors to generate insurance estimates?

Answer: Xactimate

Xactimate is the industry-standard estimating software used by restoration contractors and insurance adjusters to generate line-item cost estimates for property damage claims.

What does 'RCV' stand for in property insurance claims?

Answer: Replacement Cost Value

Replacement Cost Value (RCV) is the insurance payout amount to replace damaged property with new materials of similar kind and quality without deducting depreciation.

What is 'ACV' and how does it differ from RCV in flood claims?

Answer: Actual Cash Value — the replacement cost minus depreciation

Actual Cash Value (ACV) is the depreciated value of damaged property, meaning the insurer deducts for age and wear, resulting in a lower payout than RCV.

What information must be included in a flood restoration moisture log to support an insurance claim?

Answer: Date, location, material type, moisture readings, and equipment list

A complete moisture log must include the date, room location, material being measured, moisture reading values, and a list of drying equipment deployed to demonstrate due diligence.

What does 'subrogation' mean in the context of flood restoration insurance claims?

Answer: The insurer's right to pursue a third party that caused the loss after paying the claim

Subrogation allows an insurance company that paid a flood claim to pursue legal action against the party responsible for causing the water damage to recover its costs.