Florida property insurance uses a specialized vocabulary that matters in practice. When an adjuster's letter references an EUO, when your policy declaration shows an ACV endorsement on roofing, or when a contractor asks you to sign an AOB agreement — these aren't bureaucratic formalities. They're terms that determine how much money you recover, when you can file, and what your rights are.
This is a reference guide to the terms that come up most often in Florida property insurance claims. Each definition is written in plain English, focused on what it actually means for property managers on the ground.
ACV (Actual Cash Value)
The depreciated value of damaged property at the time of loss — what the item was worth just before the storm, minus depreciation for age and condition. ACV payments are lower than replacement cost. Florida insurers increasingly apply ACV specifically to roofing on older properties.
RCV (Replacement Cost Value)
What it costs to replace damaged property with a new equivalent at current prices, without depreciation deduction. RCV coverage pays the full replacement cost; the difference between ACV and RCV is called the "holdback" and is typically paid after repairs are completed.
Deductible
The amount you pay out of pocket before your insurance coverage kicks in. Florida property policies have separate deductibles for hurricanes (percentage-based) and all other perils (typically a flat dollar amount). Your hurricane deductible and your all-other-perils deductible are different numbers.
Hurricane Deductible
A percentage-based deductible that applies specifically to hurricane damage. In Florida, hurricane deductibles are typically 2–5% of the insured value of the structure — on a $400,000 property, a 2% hurricane deductible means $8,000 out of pocket before coverage begins. The hurricane deductible triggers only when a named storm is active.
Wind/Water Exclusion
Policy language that excludes damage caused by either wind or water (depending on the exclusion). Wind exclusions are sometimes applied in coastal areas. Water exclusions are standard — standard property policies exclude flood damage, which is why NFIP or private flood coverage is necessary. The wind/water dispute — whether damage was caused by storm surge (flood, excluded) or wind (covered) — is one of the most common post-hurricane claim disputes.
Loss of Rents
Coverage that pays for lost rental income when a covered peril makes your rental property uninhabitable. Loss of Rents (also called "Fair Rental Value" or "Business Income" on commercial policies) has a waiting period, a maximum payout period, and specific documentation requirements. It does not pay if the property is vacant, if the tenant simply leaves, or if the property is habitable but the tenant refuses to return.
AOB (Assignment of Benefits)
A legal agreement that transfers your insurance claim rights to a third party — typically a contractor. The contractor then deals directly with the insurer for payment. Florida's 2022 reform (SB 2-D) severely restricted AOB agreements for property insurance, eliminating the one-way attorney fee provision that had fueled widespread AOB abuse. Property managers should not sign AOB agreements without consulting a public adjuster or insurance attorney.
Supplemental Claim
An additional claim filed after the original settlement when new damage is discovered during repairs — typically concealed damage not visible during the initial inspection. Florida's 2022 reform cut the supplemental claim window to 18 months from the date of loss. Missing the supplement deadline permanently forecloses additional recovery, even if the damage is clearly storm-caused.
Proof of Loss
A formal, sworn document you submit to your insurer that itemizes your claimed losses and their dollar values. Most Florida policies require a Proof of Loss within 60 days of the loss or insurer request. NFIP (federal flood insurance) has particularly strict Proof of Loss requirements — courts have upheld NFIP claim denials based solely on failure to file a proper, timely Proof of Loss.
EUO (Examination Under Oath)
A formal interview conducted under oath and recorded by a court reporter, requested by an insurer during a claim investigation. Refusing to participate in an EUO is typically grounds for claim denial under Florida policy terms. An EUO request signals the insurer is investigating fraud or building a denial case — consult a public adjuster or insurance attorney before attending.
Subrogation
The insurer's right to pursue a third party who caused your loss after paying your claim. If a contractor's negligence caused fire damage and your insurer paid the claim, the insurer can sue the contractor to recover what they paid. Property managers should never sign third-party releases or settle directly with at-fault parties without coordinating with their insurer.
Co-Insurance
A provision requiring the policyholder to carry insurance coverage equal to a specified percentage of the property's value (typically 80% or 90%). If your coverage falls below that percentage at the time of loss, you become a co-insurer and absorb a proportional share of the loss. Common on commercial policies; less common on residential Florida policies but present in some commercial property coverage.
Ordinance or Law Coverage
An endorsement that pays for the additional cost of rebuilding or repairing a structure to meet current building codes after a covered loss. Without Ordinance or Law coverage, property managers pay out of pocket for code upgrades required during storm repairs — which can easily be $20,000–$60,000 on older Florida properties. Coverage has three parts: loss to undamaged portions, demolition costs, and increased construction costs.
Flood vs. Water Damage
A critical distinction in Florida insurance. "Flood" is water that rises from an external source — storm surge, river overflow, ponding from rainfall accumulation. Standard property policies exclude flood damage. "Water damage" is typically water that enters from the top down during a storm — rain intrusion through a damaged roof, wind-driven rain through a broken window. Standard property policies typically cover storm-related water damage but not flood. The source of water determines which coverage applies.
Citizens Property Insurance
Florida's state-run insurer of last resort, available to property owners who cannot obtain coverage from private carriers at a comparable price. Citizens operates under special rules: it can levy assessments on all Florida policyholders after a catastrophic event, it is subject to rate caps, and it actively "depopulates" by transferring policies to private carriers. Citizens policies have specific claim-handling rules that differ from private carriers.
Demotech
A financial rating agency that rates small and mid-size Florida property insurance carriers. A Demotech 'A' rating is required for carriers to write insurance on properties with Fannie Mae/Freddie Mac-backed mortgages. When a carrier loses its Demotech rating, policyholders with GSE mortgages must quickly find replacement coverage. Monitor your carriers' ratings annually.
FIGA (Florida Insurance Guaranty Association)
A state-created association that pays claims from insolvent Florida insurance carriers up to $300,000 per claim. When a Florida insurer becomes insolvent mid-claim (as six did after Hurricane Ian), claims are transferred to FIGA. FIGA processing is significantly slower than private carrier processing — expect 12–24 month resolution timelines on FIGA claims.
NFIP (National Flood Insurance Program)
The federal government's flood insurance program, administered by FEMA and sold through private "Write-Your-Own" carriers. NFIP covers buildings up to $250,000 and contents up to $100,000 for residential properties. NFIP does not cover loss of rental income, additional living expenses, or detached structures other than garages. Has a 30-day waiting period after purchase.
Reservation of Rights
A letter from an insurer that states they are investigating a claim but reserve the right to deny it based on specific policy provisions they've identified. A Reservation of Rights letter is a signal that the insurer sees potential grounds for denial — not a denial itself. Take it seriously: consult a public adjuster or insurance attorney, do not make statements that could be used against your claim, and document everything carefully from that point forward.
Appraisal (Insurance)
A dispute resolution process available under most Florida property policies when the insurer and policyholder agree that coverage exists but disagree on the dollar value of the loss. Each party appoints an independent appraiser; the two appraisers select an umpire; the decision of any two of the three is binding. Appraisal is faster and cheaper than litigation and is particularly useful for resolving contractor vs. adjuster scope and value disputes.
Named Storm Deductible
Similar to a hurricane deductible — a percentage-based deductible that applies to losses from named tropical storms (including those that don't reach hurricane strength). Some Florida policies use "named storm" instead of "hurricane" as the trigger, which means the higher percentage deductible can apply to tropical storms and subtropical storms that are named but not classified as hurricanes.
Insurance terms rarely appear in isolation. A real storm claim might involve: a hurricane deductible that applies because the named storm trigger was met, an ACV endorsement on the roof that reduces the payout, an Ordinance or Law question about code upgrades to the repaired roof, a Loss of Rents calculation for the period of uninhabitability, and a Reservation of Rights letter from the insurer flagging a potential wind/water exclusion dispute.
Each of those intersections changes the math. A property manager who understands what each term means — and what it implies for their specific claim — is better positioned to push back on undervalued settlements, meet critical deadlines, and know when to bring in a public adjuster or insurance attorney.