Glossary: property damage, restoration, and insurance terms

All terms

Actual cash value

Actual cash value (ACV) is what damaged property was worth just before the loss, usually replacement cost minus depreciation. Many policies pay ACV first and hold back the rest until you repair or replace.

Additional living expenses

Additional living expenses (ALE) is homeowners coverage for the extra cost of living elsewhere while a covered loss makes your home unfit to live in, such as hotel bills and higher food costs above your normal spending.

AMRT

AMRT stands for Applied Microbial Remediation Technician, the IICRC's core certification for hands-on mold and sewage remediation. Technicians must hold the WRT water certification first. It is voluntary, not a state license.

Antimicrobial

An antimicrobial is a product meant to kill or slow microbes like bacteria and mold. EPA regulates them as pesticides, and EPA says biocides such as bleach are not recommended as a routine part of mold remediation.

Aspergillus

Aspergillus is one of the most common molds indoors and outdoors. CDC says most people breathe its spores every day without getting sick, but people with weak immune systems or lung disease can develop an infection called aspergillosis.

Assignment of benefits

An assignment of benefits (AOB) is a contract that hands your insurance claim rights to a contractor, who then deals with and bills your insurer. In Florida, post-loss AOBs are void for property policies issued on or after January 1, 2023.

Category 1 water

Category 1 water is clean water from a sanitary source that poses little risk from skin contact, swallowing or breathing it in. It is the least contaminated of the three IICRC S500 water categories.

Category 2 water

Category 2 water carries significant contamination that can cause discomfort or illness if people touch or swallow it. It sits between clean Category 1 and grossly contaminated Category 3 in the IICRC S500 standard.

Category 3 water

Category 3 water is grossly contaminated and can contain harmful germs or chemicals. Examples in the IICRC S500 include sewage, seawater flooding and rising river water. EPA advises calling a pro for it.

CIH

CIH stands for Certified Industrial Hygienist, a credential awarded by the Board for Global EHS Credentialing to professionals who assess health hazards in workplaces and indoor environments, including mold and air quality.

Cladosporium

Cladosporium is one of the most common molds found indoors and outdoors, according to CDC. Like other molds, it grows on damp surfaces and can trigger allergies in sensitive people.

Class 1 to 4 water damage

Water damage classes 1 to 4 describe how much water the materials absorbed and how hard they will be to dry, from Class 1 (a small, mostly dry area) to Class 4 (water bound deep in hardwood, plaster or brick).

Clearance testing

Clearance testing, or post-remediation verification, is the check after mold removal that confirms the work is done: the moisture problem fixed, no visible mold or moldy odor, and sometimes air or surface samples.

Containment

Containment is the plastic-sheeting barrier remediators build around a moldy area to keep spores and dust from spreading. EPA recommends limited containment for about 10 to 100 sq ft of mold and full containment above 100 sq ft.

Duty to mitigate

The duty to mitigate is your obligation under most property policies to take reasonable steps to protect your home from further damage after a loss, such as stopping a leak, drying out, and keeping records of what you spend.

Encapsulation

Encapsulation means sealing a surface with a coating, usually after mold has been cleaned off and the material is dry. It is not a substitute for removal. EPA says never to paint or caulk over moldy surfaces.

ERMI

ERMI, the Environmental Relative Moldiness Index, is a lab test EPA scientists developed to estimate mold levels in buildings for research. EPA says it has not been validated for non-research purposes, such as diagnosing your home.

FEMA Individual Assistance

FEMA Individual Assistance, through its Individuals and Households Program, helps people in a declared disaster area with uninsured or underinsured needs like temporary housing, basic home repairs and other serious costs.

FSRT

FSRT stands for Fire and Smoke Damage Restoration Technician, the IICRC certification for scoping, cleaning, deodorizing and documenting fire- and smoke-damaged homes and contents. It has no prerequisite.

Fungi endorsement

A fungi endorsement, such as ISO's Limited Fungi, Wet or Dry Rot, or Bacteria Coverage (HO 04 26/27/28), adds a small, capped amount of mold coverage to a homeowners policy that otherwise largely excludes mold.

HEPA

HEPA stands for high-efficiency particulate air. A true HEPA filter, as defined by the U.S. Department of Energy, can remove at least 99.97% of airborne particles 0.3 microns in size, including mold and dust.

Hurricane deductible

A hurricane deductible is a separate, usually percentage-based deductible for hurricane damage. Florida insurers must offer $500, 2%, 5% and 10% of the dwelling limit, and it applies once per calendar year.

Hydroxyl generator

A hydroxyl generator is an odor-control machine that uses ultraviolet light to make hydroxyl radicals, reactive molecules that break down odor compounds. EPA says similar technologies can create harmful byproducts.

IICRC S500

The ANSI/IICRC S500 is the Standard for Professional Water Damage Restoration. Its current 5th edition (2021) sets out how restorers inspect, categorize, dry and document water-damaged homes and contents.

IICRC S520

The ANSI/IICRC S520 is the Standard for Professional Mold Remediation. Its 4th edition (2024) covers remediator qualifications, containment, structural, HVAC and contents remediation, and post-remediation verification.

Independent adjuster

An independent adjuster is a licensed adjuster hired by your insurance company, often through an adjusting firm, to inspect the damage and estimate what the policy will pay. Despite the name, they work for the insurer, not you.

Moisture meter

A moisture meter is a handheld tool that measures how much water is in drywall, wood, concrete or other materials. Restorers use it to find hidden wetness and to prove when materials are dry enough to rebuild.

Mold assessor

A mold assessor inspects a building to find where mold is, how much there is, and what caused it, often with sampling. Florida, Texas, New York and Louisiana license assessors. In Florida, an assessor may not also remediate the same job.

Mold remediator

A mold remediator removes, cleans and treats mold-contaminated materials and fixes conditions that let mold grow. Florida requires a state license for remediation of more than 10 square feet and bans the same company from also assessing.

Mold spores

Mold spores are the tiny, invisible particles molds use to spread. They float in indoor and outdoor air and only start growing when they land somewhere wet. That is why fixing moisture, not killing spores, is the key to mold control.

Mycotoxin

Mycotoxins are chemicals some molds can produce. Medical toxicologists say diet is the main source of human exposure, and urine mycotoxin tests sold to consumers are not FDA-approved and lack standard harm thresholds.

Negative air machine

A negative air machine is a HEPA-filtered fan that pulls air out of a sealed work area and exhausts it outside. That keeps the area under negative pressure so mold spores and dust flow in, not out, during remediation.

NFIP

The NFIP, or National Flood Insurance Program, is the FEMA-run program that sells flood insurance. Its standard policy covers up to $250,000 for a single-family home and $100,000 for contents, and does not pay living expenses.

Ozone treatment

Ozone treatment uses a machine that deliberately makes ozone gas to break down odors. EPA says ozone can be harmful to health and should be used only when no people or pets are present.

Pack-out

A pack-out is when a restoration company inventories, packs and moves your belongings out of a damaged home for cleaning, storage or disposal, then returns them after repairs. It is common after fires and large water losses.

Proof of loss

A proof of loss is a signed, sworn statement of how much you are claiming and why. Standard homeowners forms require it within 60 days after the insurer asks. NFIP flood policies require it within 60 days after the loss.

Public adjuster

A public adjuster is a licensed professional you hire, usually for a percentage of the claim payment, to prepare, file and negotiate an insurance claim on your behalf. Florida caps public adjuster fees at 10% or 20% depending on the claim.

Recoverable depreciation

Recoverable depreciation is the part of a replacement cost claim your insurer holds back at first and pays later, usually once you repair or replace and send proof. It is the gap between replacement cost and actual cash value.

Replacement cost value

Replacement cost value (RCV) is what it costs to repair or replace damaged property with new material of like kind and quality, without subtracting depreciation. Many policies pay it in two steps after repairs are done.

SBA disaster loan

An SBA disaster loan is a low-interest federal loan for homeowners, renters and businesses in a declared disaster area. Homeowners may borrow up to $500,000 for a primary home and up to $100,000 for personal property.

Soot

Soot is the fine black residue left by fire and smoke. It can coat surfaces far from the flames, stain materials, carry odor, and may contain substances that can make you sick, so it needs careful, method-specific cleaning.

Stachybotrys

Stachybotrys chartarum is a greenish-black mold that can grow on wet, cellulose-rich materials like drywall and paper. CDC says all molds should be treated the same for health risk and removal, whatever the color or type.

Sublimit

A sublimit is a smaller cap inside your policy that limits what it will pay for a specific type of loss or property, such as mold, water backup, cash or business equipment, no matter how high your overall coverage is.

Thermal fogging

Thermal fogging is an odor-control method in which a heated fogging machine turns a deodorizing product into a fine fog that drifts into the same places smoke reached. Follow the product label and stay out until the crew says it is safe.

Water backup endorsement

A water backup endorsement adds limited coverage for water that backs up through sewers or drains or overflows from a sump pump, damage a standard homeowners policy excludes. Flood from outside is still excluded.

WRT

WRT stands for Water Damage Restoration Technician, the IICRC's entry-level water damage certification. It covers how water damages buildings and how to dry them, and it is the prerequisite for the ASD and AMRT certifications.

Xactimate

Xactimate is Verisk's property claims estimating software. Many adjusters and restoration contractors use it to price repairs line by line, with localized pricing data Verisk says covers more than 460 regions.