Home Insurance Claim Glossary

Plain-English definitions of the terms you'll see on a home insurance claim. Each term links to the guide that covers it in more depth.

Replacement Cost Value (RCV)

Replacement Cost Value is the cost to repair or replace damaged property at today's prices, without subtracting anything for age or wear. If your roof is destroyed, the RCV reflects what a comparable new roof costs now — not what your old roof was worth before the damage.

This matters because RCV is usually the larger of the two key figures on a claim, and the gap between it and your Actual Cash Value is where depreciation comes in.

NAIC's own formal glossary uses the shorter term "Replacement Cost" rather than "RCV" — this site uses "RCV" because it's the term NCDOI's consumer guidance uses directly.

Related: Guide — What Is Recoverable Depreciation?

Actual Cash Value (ACV)

Actual Cash Value is what damaged property is worth after accounting for depreciation — in most cases, replacement cost minus depreciation. Under some replacement-cost claims, an insurer may initially pay an ACV amount before later reimbursing eligible recoverable depreciation after applicable repair, replacement, and documentation requirements.

This figure matters because it's often the basis for an early payment on a claim, not the full repair cost shown on your estimate.

NAIC's own definition includes the qualifier "in most cases" — it isn't presented as an absolute formula that applies identically to every policy or every item.

Related: Guide — Why Is My Insurance Check Less Than the Estimate?

Recoverable Depreciation

Recoverable depreciation is the portion of depreciation that may be reimbursed later under some replacement-cost claims, after applicable repair or replacement requirements are met and supporting evidence, such as receipts, is submitted.

This matters because it explains why an initial payment often doesn't match a full repair estimate — some of that gap may still be eligible for reimbursement.

It isn't automatic: reimbursement generally depends on completing the work and providing evidence, and exact requirements vary by policy.

Non-Recoverable Depreciation

Non-recoverable depreciation is the portion of depreciation that is not recoverable at any point in the claim — unlike recoverable depreciation, it isn't paid back later even after repairs are finished. It affects your overall settlement amount, generally reducing what you ultimately receive.

This matters because not every dollar of depreciation on your estimate works the same way — some of it may genuinely be gone for good, separate from what you might still collect.

Whether non-recoverable depreciation applies, and how much, depends on your specific policy. The reasons behind any particular classification aren't something this glossary can generalize.

Related: Guide — Recoverable vs. Non-Recoverable Depreciation

Holdback

A holdback is an amount your insurer may temporarily withhold from a claim payment, requiring you to actually incur the cost of repairing or replacing the damaged item before that amount is released. Even with replacement-cost coverage, a holdback can be part of how some claims are paid.

This matters because it's one reason an initial check may be smaller than a full estimate.

Policies usually set a time frame for completing repairs to claim a holdback, though this project doesn't state a specific number, since it varies. Holdback and recoverable depreciation describe closely related ideas but aren't necessarily the exact same technical term in every source.

Related: Guide — What Is Recoverable Depreciation?

Deductible

A deductible is the amount of a covered loss you're responsible for before your insurer pays its share. Depending on the policy, it may be a fixed dollar amount or a percentage.

This matters because, when a deductible applies, it represents the portion of the covered loss you are responsible for before the insurer pays its share.

For a percentage deductible, check your policy to see what insured amount the percentage is applied to — this can differ by policy and by type of loss. Don't assume a percentage is based on your claim amount or your home's market value.

Coverage A (Dwelling Coverage)

Coverage A (Dwelling Coverage) is the part of a homeowners policy that generally covers the dwelling and attached structures when they're damaged by a covered loss. The Coverage A limit is typically intended to reflect the amount it would take to rebuild the home, subject to the policy.

This matters because Coverage A is usually the first coverage amount listed on a declarations page.

The Coverage A limit isn't necessarily the same as your home's real-estate or market value, and not every policy form uses identical lettering.

Hurricane Deductible

A hurricane deductible is a special deductible that typically applies when covered damage is caused by a hurricane, subject to the policy's own trigger and any applicable state rules. It's applied separately from your regular deductible and is often a higher amount.

This matters because, in states where it applies, it can mean a much larger out-of-pocket amount for hurricane damage than for an ordinary claim.

Not every state or policy has a hurricane deductible, and its specific trigger, percentage, and timing all vary — check your own declarations page.

Related: Guide — Hurricane Deductible vs. Regular Deductible

Named-Storm Deductible

A named-storm deductible is a special deductible that can apply to losses caused by a named storm, which may include categorized hurricanes and other named events such as tropical storms, tropical cyclones, or typhoons, depending on the policy. It's a broader category than "hurricane deductible," though the two are closely related.

This matters because your policy might use "named storm" language that covers more weather events than the word "hurricane" alone would suggest.

Exact definitions, triggers, and applicable states depend on your policy — the two terms aren't interchangeable.

Related: Guide — Hurricane Deductible vs. Regular Deductible

Adjuster

An adjuster is a person who investigates insurance claims and recommends settlement options based on damage estimates and the policy's terms.

This matters because you may work with an adjuster when reviewing the damage estimate, settlement offer, and claim figures you are trying to understand.

This is a general definition; it doesn't distinguish between a company adjuster, an independent adjuster, or a public adjuster, since that distinction isn't needed to understand the role for most homeowners' purposes.

Loss Payee

In the homeowners-insurance context, a mortgage holder may be listed as a loss payee because it has a secured interest in the property. That can affect how certain insurance claim checks are issued, including checks made jointly payable to the homeowner and mortgage company.

This matters because seeing your mortgage company's name on a claim check can be confusing if you don't know why it's there.

Different authoritative sources describe this relationship with different terms — loss payee, additional insured, mortgage holder, and mortgagee are not necessarily identical technical designations, so this entry is scoped to what's specifically meant by "loss payee."

Declarations Page

The declarations page (sometimes called the "dec page") is the part of your homeowners policy, usually near the front, that summarizes your specific policy information: the policy number, effective dates, the insured property, the mortgage holder, your coverages and coverage limits, your premium, and your deductibles.

This matters because it's the fastest place to check your actual coverage amounts and deductible type before you need to use them in a claim.

Exact layout and the specific information shown can vary by insurer, so treat this as a general guide to what to look for, not a template every company follows exactly.

Glossary claim-to-source table

Term	Primary source	Secondary source
Replacement Cost Value (RCV)	NCDOI, "Actual Cash Value vs. Replacement Cost Value"	NAIC Glossary (confirms the shorter formal term "Replacement Cost")
Actual Cash Value (ACV)	NAIC Glossary: "Actual Cash Value"	NCDOI (conditional "may first pay" wording)
Recoverable Depreciation	NCDOI	—
Non-Recoverable Depreciation	County of San Mateo, California, Department of Emergency Management (county-government guidance, not a state insurance regulator)	—
Holdback	NJ DOBI, "Home Insurance Basics"	—
Deductible	NAIC, "Understanding Your Homeowners or Renter's Policy"	Maryland Insurance Administration, "Understanding Your Declarations Page"
Coverage A (Dwelling Coverage)	North Carolina Department of Insurance, "Basic Homeowners Insurance"	Maryland Insurance Administration, "Understanding Your Declarations Page"
Hurricane Deductible	NAIC, "Hurricane Deductibles"	—
Named-Storm Deductible	NAIC, "Consumer Insight: What Are Named Storm Deductibles?"	—
Adjuster	NAIC Glossary: "Adjuster"	—
Loss Payee	NJ DOBI, "Frequently Asked Questions for Insurance Proceeds Checks"	—
Declarations Page	NAIC, "Understanding Your Homeowners or Renter's Policy"	Maryland Insurance Administration, "Understanding Your Declarations Page"

Home insurance claim glossary