The jargon, translated
Every term you'll meet on your servicer's claim portal and paperwork, in plain English. Link to any term directly — each one has its own anchor.
- ACV vs. RCV(the paperwork says: "actual cash value / replacement cost value")
- Two ways insurers value damage. ACV (actual cash value) is the depreciated value paid up front; RCV (replacement cost) is the full cost to replace. If your policy is RCV, the difference is paid later as recoverable depreciation once repairs are done.
- Adjuster's worksheet / report(the paperwork says: "adjuster's summary, scope of loss")
- The insurance company's line-by-line breakdown of the damage and what they are paying for. It comes from your insurance adjuster, not the mortgage company, and the servicer wants a copy to confirm the repair plan matches it.
- Disbursement
- A payment released from the held claim funds — commonly an initial payment to start work, one after a mid-repair inspection, and a final payment after completion. Sometimes called a 'draw'.
- Endorsement(the paperwork says: "endorse your check")
- Signing the back of the check. Every person named on the front (except the mortgage company) signs exactly as their name is printed. The mortgage company adds its endorsement after you mail the check to them.
- Escrow (restricted) account
- The holding account where the servicer keeps your claim money on a monitored claim. It is still your money; it is released in stages as the work gets done.
- Intent to repair
- A short form where you state that you will use the claim money to repair the property. One of the standard documents a monitored claim requires.
- Lien waiver(the paperwork says: "waiver of lien")
- A document your contractor signs saying that, once paid, they give up the right to place a lien (a legal money claim) on your home for that work. Servicers usually require a final signed lien waiver before releasing the last funds. It protects you, not just the bank.
- Loss draft(the paperwork says: "insurance claim funds / claim check")
- The industry name for an insurance claim check on a mortgaged home. When you hear 'loss draft department', that is simply the office at your mortgage company that handles insurance claim checks.
- Monitored claim(the paperwork says: "monitored / non-monitored")
- A claim large enough that the servicer holds the money and releases it in stages as repairs progress, verified by inspections. Smaller claims are 'non-monitored': the servicer endorses the check and returns the full amount at once. The dollar cutoff varies by servicer and by whether your loan is current.
- Mortgage servicer
- The company you send your mortgage payment to. It may not be the company that originally gave you the loan — loans get transferred. The servicer is who must sign off on your insurance check, and many servicers hire an outside processor (such as Assurant, which runs insuranceclaimcheck.com) to handle it.
- Mortgagee clause
- The part of your homeowner's insurance policy that names your lender as having a financial interest in the property. It is why the insurance company is required to put the lender's name on your claim check.
- Progress inspection
- A visit the servicer orders (usually at your request) to photograph repair progress and file a completion percentage. Inspections at roughly 50% and at completion are what unlock later disbursements on a monitored claim.
- Public adjuster
- A state-licensed professional you can hire (for a percentage of the claim) to negotiate with your insurance company on your behalf. Different from the insurer's own adjuster. CheckCompanion is not a public adjuster and does not negotiate claims — we only explain the process.
- Recoverable depreciation
- Money your insurer held back until you prove repairs are complete. You claim it from the insurance company with receipts/completion photos — a second check, which may also name your mortgage servicer and go through the same endorsement process.
- Supplement
- An additional insurance payment requested when repairs uncover damage (or prices) beyond the original adjuster's estimate. Your contractor documents it and your insurance adjuster approves it — settle this with the insurer before the gap becomes a fight with your contractor.
- W-9
- A standard IRS form with your contractor's legal name and tax ID. The servicer needs it because disbursement checks are often made out jointly to you and the contractor.