Glossary

Increased Cost of Compliance (ICC)

Coverage for expenses that a property owner must incur, above and beyond the cost to repair the physical damage the building actually sustained from a flooding event, to comply with mitigation requirements of state or local floodplain management ordinances or laws. Acceptable mitigation measures are elevation, flood-proofing, relocation, demolition, or any combination thereof.

Institute of Inspection Cleaning and Restoration Certification (IICRC)

The IICRC is a non-profit organization devoted to the certification and standard-setting for the flooring inspection, floor covering, specialized cleaning and disaster restoration industry. It aims to set the standards within these industries and promote ethics, effective communication, and technical proficiency. Aside from its role as a governing body, the IICRC also provides and disseminates information to maintain productive and fair recommendations throughout the industry. This is done to provide protection for the consumers, workers in the industry, and the environment.

​Like, Kind and Quality

Like, kind and quality refer to a condition in insurance policies that states that the insurance company would cover the cost of repairing or replacing a covered loss with property similar to the original in composition and quality. As an example, floodwaters damaged your laminate flooring which was installed 10 years ago. The exact laminate flooring may no longer be available. Styles, designs, materials and manufacturing processes change over time. The policy pays to replace this item with a comparable laminate flooring available today.

Limits

The maximum amount of insurance that can be paid for a covered loss. This can be found on the Declarations page of your policy.

Loss of Use Insurance

This is the same as Additional Living Expenses (ALE). Compensation for loss caused because the policyholder has lost the use of his property. Your flood policy DOES NOT cover Loss of Use or ALE.

Mildew

A coating or discoloration on moist surfaces due to molds or fungi is called mildew.

Mitigate

Mitigate means to lessen or compensate for a previous event that had a significant impact on a structure or area.

Molds

Molds are a form of fungi, which are naturally occurring in nature. These microorganisms produce enzymes that digest dead organic matter and help in the natural process of decomposition. However, mold infestations that occur within the home and other establishments can cause serious health risks to its human inhabitants. Molds are attracted to moisture, particularly on damp areas or surfaces, which have exposure to water damage Molds propagate through spores released through the air and lands on moisture-rich surfaces.

​Mudflow

A river of liquid and flowing mud on the surfaces of normally dry land areas, as when the earth is carried by a current of water. Other earth movements, such as landslide, slope failure, or a saturated soil mass moving by liquidity down a slope, are not mudflows.

Named Perils

A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the policy in contrast to an all-risk policy, which covers all causes of loss except those specifically excluded.

National Flood Insurance Program (NFIP)

The program of flood insurance coverage and floodplain management administered under the Act and applicable Federal regulations in Title 44 of the Code of Federal Regulations, Subchapter B.

Notice of Loss

A written notice required by insurance companies immediately after an accident or other loss. Part of the standard provisions defining a policyholder’s responsibilities after a loss. This report is generated when you file your claim.

​Other Structure

In homeowner’s policies, this refers to a structure located on the residence premises that is not directly attached to the dwelling structure, such as a detached garage or gazebo.

Peril

A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the policy in contrast to an all-risk policy, which covers all causes of loss except those specifically excluded.

Personal property (Contents)

Property owned or used by an insured.

Policy

The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.

Policy Rider

An amendment to an insurance policy that becomes part of the insurance contract and either expands or limits the benefits payable under the contract. Same as Endorsement.

Post-FIRM Building

A building for which construction or substantial improvement occurred after December 31, 1974, or on or after the effective date of an initial Flood Insurance Rate Map (FIRM), whichever is later.

Recoverable Depreciation

If your policy is a Replacement Cost Policy, then you can recover the depreciation deducted from your claim once the repairs are made. Let’s say your deductible is $1,000 and the repair estimate on your roof is for $8,000.  Due to age and condition, your roof was depreciated by 50%.  Your first payment from the insurance company will be $8,000 (Replacement cost of a roof) minus $4,000 (depreciation on the roof) minus $1,000 (deductible) which equals $3000. Once the repairs are made and you send proof of the repairs to the insurance company they will send you back your depreciation of $4,000. Therefore, you ‘recover’ your depreciation.

​Remediation

In restoration work, remediation refers to the clean-up action used to reduce, isolate or remove contamination from home or a business establishment, thus preventing exposure of people and animals to these contaminants. Examples are flooded removal from basements or kitchens or mold remediation from drywall.

Replacement Cost Value (RCV)

The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy

Restoration

The process of rebuilding or reconstructing a portion of a property to its original look and structural state prior to a destructive incident such as mold growth, water damage, flooding or fire damage.

Salvage

Damaged property an insurer takes over to reduce its loss after paying a claim. Insurers receive salvage rights over the property on which they have paid claims.  If the insurance company pays to replace your damaged sofa, they have the right to take possession of the sofa.

Special Flood Hazard Area

An area having a special flood, or mudflow, and/or flood-related erosion hazards, and shown on a Flood Hazard Boundary Map or Flood Insurance Rate Map as Zone A, AO, A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, or V.

​Stachybotrys

Commonly referred to as “black mold” (see Toxic Mold), this type of toxigenic mold is known to produce the harmful metabolite known as mycotoxins, which can cause adverse health effects for humans and animals, when exposed. Towards the beginning stages of growth, this mold appears white in color but soon becomes black.

Subrogation

The legal process by which an insurance company, after paying a loss, seeks to recover the amount of the loss from another party who is legally liable for it.

Toxic Mold

Also known as “black mold” or “toxic black mold”, are popular terms used to describe dark or black colored mold that may or may not produce toxic byproducts. These terms became highly publicized in the late 1990s and early 2000s when the potentially toxic and black colored species of mold called Stachybotrys was found at a number of properties with the occupants experiencing associated health problems. In actuality, there are only a few species of mold that are potentially harmful in the toxic sense. It’s important to note that while any mold is potentially harmful to those with allergies or who have weakened immune systems, not all mold is toxic and not all toxic mold is black. Stachybotrys is a type of mold that is considered toxic. There are also other types of molds that secrete mycotoxins that do not have a dark or “black” appearance.

Underinsurance

The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy. See Insured to Value (ITV).

Water Damage Restoration

The process of returning a property to its condition prior to when water damage occurred through the extraction and drying of any remaining water, dehumidifying inside air, cleaning and preserving any household items, applying deodorizing detergents and solvents and/or rebuilding any irreparable sections of the property.

Waterproofing

Is the process of making an area of a property, such as a roof, windows or basement water-resistant or protected from water or moisture intrusion from rain, flooding, or other environmental means by applying certain construction techniques, building materials and/or chemical treatments.