A

Actual Cash Value (ACV)
A method of valuing insured property for loss that subtracts depreciation from replacement cost, reflecting the item’s current market value.

Advanced Treatment

Optional water treatment processes used to further improve water quality for specialized applications or challenging source conditions. Advanced treatment may include activated carbon adsorption, reverse osmosis, or ion exchange to remove dissolved contaminants, salts, or hardness minerals. These systems are typically applied when standard treatment alone is insufficient. This is relevant to property valuation because advanced treatment systems are often among the most expensive components of a water treatment facility and should be individually identified to ensure replacement costs reflect their complexity and technology-driven pricing.

Aeration System

A system used in secondary wastewater treatment to introduce air or oxygen into treatment tanks, supporting the growth of microorganisms that break down organic pollutants. Aeration systems typically include blowers, diffusers, piping, and control equipment. This is relevant to property valuations because aeration systems often represent one of the most energy-intensive and expensive components of a treatment facility, with specialized mechanical and electrical equipment that should be individually identified in replacement cost valuations.

Appraisal
A formal process to determine the current replacement cost, reproduction cost, or market value of a property or asset for insurance and risk management planning purposes.

Asset Inventory
A comprehensive list of physical assets that an organization owns, often including details like location, size, use, and condition. This data supports insurance, risk management, and capital planning.

B

Blanket Coverage
An insurance arrangement that provides a single limit of coverage across multiple properties, locations, or types of property, instead of listing individual limits for each item. Often used for ease of administration and flexibility in claims handling.

Broker
An independent intermediary who helps clients find suitable insurance policies by working with multiple carriers and advocating for the insured’s interests.

Builder’s Risk Insurance
A specialized policy that provides coverage for buildings under construction, including materials and equipment on site.

Building Elements

These are the materials used in the construction of the structural frame, exterior and interior bearing walls, exterior and interior nonbearing walls and partitions, floor construction (including supporting beams and joists) and roof construction (supporting beams and joists).

Business Continuity Plan (BCP)
A strategic plan outlining how an organization will continue operating during and after a major disruption, including recovery of systems, data, and facilities.

Business Interruption Insurance
Coverage that compensates for lost income and extra expenses incurred when normal operations are disrupted due to a covered loss.

Business Personal Property (BPP)
Movable items owned by a business, such as furniture, equipment, and inventory, which are not part of the building structure but may be covered under a property insurance policy.

C

Capacity (Insurance)
The maximum amount of risk an insurer or risk pool is willing to underwrite for a particular policy or group of policies.

Catastrophic Loss
A large-scale loss event, such as a hurricane or wildfire, that results in significant damage to property and potentially impacts multiple insureds simultaneously.

Catastrophe Modeling
The use of computer simulations to estimate potential losses from natural disasters, such as hurricanes or earthquakes, based on geographic and structural data.

Chemical Feed System

In water/wastewater treatment, a system designed to store, meter, and deliver treatment chemicals such as coagulants, disinfectants, or pH-adjustment agents into the treatment process. These systems typically include storage tanks, pumps, piping, and automated controls. This is relevant to property valuations because chemical feed systems are function-specific assets subject to corrosion, regulatory requirements, and safety standards, all of which influence replacement cost and justify separate scheduling from general plant equipment.

Claim
A formal request made by the insured to the insurance provider for compensation following a covered loss or damage. The claim outlines the incident and seeks payment under the terms of the policy.

Claim Adjustment
The process carried out by an insurance adjuster to investigate, evaluate, and determine the appropriate settlement amount for a claim. It includes verifying coverage, assessing damage, and negotiating payment.

Claim Documentation
The process of collecting and organizing records, photographs, valuations, and other evidence to support an insurance claim and facilitate a smooth settlement.

Clarifier (Primary / Secondary)

A tank or basin used in water or wastewater treatment to allow suspended solids to settle out of the liquid by gravity. Primary clarifiers remove settleable solids early in the treatment process, while secondary clarifiers separate biological solids formed during secondary treatment before the treated water moves to the next stage. This is relevant to property valuation because clarifiers are large structural and mechanical assets with distinct foundations, drive mechanisms, and sludge collection systems, making them costly to replace and inappropriate to lump into a single plant-wide value.

Coagulation and Flocculation

An early stage of water treatment that removes suspended particles by causing them to clump together. During coagulation, chemicals such as aluminum sulfate or ferric chloride are added to destabilize fine particles. Flocculation follows, using gentle mixing to form larger, heavier clusters called flocs, which can be more easily removed in downstream treatment processes. This is relevant to property valuation because coagulation and flocculation systems rely on chemical feed equipment, mixers, and controls that are function-specific assets and should be distinctly valued rather than bundled into general plant infrastructure.

Coinsurance Clause
A policy provision requiring the insured to carry insurance equal to a certain percentage (commonly 80%–100%) of the property’s value. Failure to do so can result in reduced claim payouts.

Combustible
Capable of catching fire and burning. Materials rated as combustible influence fire risk and construction classification.

Combustibility
The degree to which a material can ignite and burn. It plays a central role in construction classification and property risk assessment.

Condition of Average / Underinsurance

Often synonymous with an underinsurance penalty, it refers to reducing claim payouts when the insured value is less than the property’s actual value. This is relevant to property valuation because it illustrates why accurate replacement cost and insurable value are essential — underinsurance can leave substantial losses uncovered.

Construction Class 1- Frame

In Verisk/ISO Construction Classifications, buildings with interior walls, floors, roofs, and supports constructed of combustible materials, typically wood. Exterior walls may be made of combustible materials or may be comprised of noncombustible or slow-burning construction. Masonry veneers and metal cladding don’t affect the frame classification. Fire‐resistance rating: None. Advantages: Easy to erect, economical. Examples: Housing, with no more than 3‐4 stories.

Construction Class 2- Joisted Masonry

In Verisk/ISO Construction Classifications, buildings in which combustible materials like wood are combined with other materials such as brick or stone veneer, glass block, or adobe. Concrete block, masonry or reinforced masonry load-bearing exterior walls also fit into this classification. Typically, these buildings are constructed with wood frames, roofs and floors. Fire‐resistance rating: Not less than 1 hour. Advantages: Harder to ignite, more structural stability. Examples: housing, small office with no more than 3‐4 stories.

Construction Class 3- Noncombustible

In Verisk/ISO Construction Classifications, buildings with exterior walls, floors, roofs and supports made up of slow‐burning and/or noncombustible materials. Steel frames are common in this classification, and slow-burning fiberglass insulation may be used. Fire‐resistance rating: None. Advantages: Easy to erect, economical. Examples: Warehouses and manufacturing facilities.

Construction Class 4- Masonry Noncombustible

In Versisk/ISO Construction Classifications, buildings in which the exterior walls are constructed of masonry materials that are at least four inches thick or are made of fire resistive construction with a rating of no less than one hour. The floor and roof are either steel, noncombustible or slow burning materials, irrespective of the insulation used. These structures might be brick, stone, hollow concrete block or tilt‐up concrete walls with heavy steel framing. Fire‐resistance rating: Not less than 1 hour. Advantages: Uses materials that don’t readily burn. Examples: Shopping centers, office buildings, warehouses and schools.

Construction Class 5- Modified Fire Resistive

In Verisk/ISO Construction Classifications, buildings with exterior walls, floors and roofs made up of either masonry materials that are between four and eight inches thick OR fire resistive materials rated for at least one hour but under two hours. Exterior nonbearing walls may be slow‐burning or combustible. Exterior bearing walls must be noncombustible or made of masonry. Protected steel supports for floors and roofs are common. Fire‐resistance rating: Less than 2 hours, but greater than 1 hour. Advantages: Allows greater height and area. Examples: High and mid‐rise office buildings and condos.

Construction Class 6- Fire Resistive

In Verisk/ISO Construction Classifications, this class requires walls of masonry materials, including reinforced concrete at least four inches thick, hollow masonry that’s at least 12 inches thick, or hollow masonry between eight and 12 inches thick with a fire resistance rating of at least two hours. Exterior bearing walls must be made of noncombustible materials, but exterior nonbearing walls may be built from combustible materials. Fire‐resistance rating: Not less than 2 hours. Advantages: Uses load‐bearing materials that resist fire. Examples: High‐rise office buildings, condos or parking garages.

Convective Storm Modeling
The use of advanced meteorological and statistical tools to predict the potential severity and impact of localized storms, such as hailstorms, windstorms, and tornadoes.

Construction Classification
A system used to categorize buildings based on the materials and methods used in construction, affecting fire risk and insurance rates. Verisk’s ISO system includes six main classes ranging from highly combustible to more flame retardant.

COPE Data
An acronym for Construction, Occupancy, Protection, and Exposure, key factors underwriters assess to evaluate property insurance risk.

Coverage Exclusion
Specific conditions or types of loss that are not covered by an insurance policy, typically listed in the policy language.

Coverage Gap
An area of risk or exposure not addressed by current insurance policies, which can lead to uncovered losses.

Critical Asset
An asset deemed essential for an organization’s operation, continuity, or safety, often prioritized in risk and resilience planning.

Critical Infrastructure
Essential systems and assets, such as water treatment plants and power stations, whose disruption would significantly affect public safety and health.

Custom Configuration
The ability to tailor a software platform like RiskStar to meet the specific data fields, workflows, or reporting needs of a user organization.

D

Data Integrity
In the context of property risk management, it’s the accuracy, consistency, and reliability of property and risk data used for insurance, planning, and compliance decisions.

Data Normalization
In property risk management, it’s the process of structuring disparate property and risk data into a consistent, standardized format for easier analysis, reporting, and system integration.

Declarations Page
The section of an insurance policy that summarizes key coverage details, including the insured party, coverage limits, premium, and effective dates.

Deductible
The amount the insured must pay out-of-pocket before insurance coverage kicks in for a claim.

Depreciation
The reduction in value of an asset over time due to age, wear and tear, or obsolescence, often considered in claims settlement.

Desktop Appraisal
An offsite valuation method where appraisers use remote tools, historical data, and imagery instead of conducting a physical site visit.

Digesters

In water/wastewater processing, these are enclosed tanks used in solids processing to biologically break down organic matter in sludge under controlled conditions, often producing stabilized biosolids and biogas. Digesters may operate under aerobic or anaerobic conditions. This is relevant to property valuations because digesters are complex, high-capital assets involving reinforced structures, heating systems, mixing equipment, and gas-handling components, making accurate, stand-alone valuation critical for proper insurance coverage.

Disinfection

The final required step in water treatment that eliminates or inactivates harmful microorganisms to ensure water safety. Common disinfection methods include chlorine, chloramine, ozone, or ultraviolet (UV) light. This process protects public health by preventing the spread of waterborne diseases. This is relevant to property valuation because disinfection equipment varies widely by method and includes chemical storage, dosing systems, or UV reactors, all of which introduce distinct valuation considerations and regulatory replacement requirements.

Dry Sprinkler System
A fire suppression system where water is held back from the pipes until activation, used in areas subject to freezing temperatures.

E

Emergency Power System
Backup generators or power supplies that provide electricity to critical systems during power outages, supporting business continuity and life safety.

Emergency Response Plan
A documented procedure that guides how to respond to and manage emergencies, such as fires, floods, or chemical spills, to protect people and property.

Experience Rating
In insurance, a method of adjusting premiums based on an organization’s prior loss experience. Entities with fewer or less severe losses may benefit from lower premiums.

Equipment Breakdown Coverage
Insurance protection for losses related to mechanical or electrical breakdown of equipment, such as HVAC, generators, or pumps.

Excess Insurance
Coverage that kicks in after a primary insurance policy has reached its limit, providing additional protection for high-value claims.

Exclusions
Specific risks or events that are not covered under an insurance policy. These are listed in the policy to clarify the limits of coverage.

Exposure
The potential risk or financial loss an organization faces due to hazards like fire, flood, earthquake, or liability claims.

Extra Expense Coverage
Insurance that reimburses an organization for costs incurred to avoid or minimize the suspension of operations following a covered loss.

F

Facility Condition Assessment
A systematic inspection and evaluation of a facility’s physical condition, used to inform capital planning, maintenance, and risk mitigation.

Filtration

A water/wastewater treatment stage that removes remaining fine particles and impurities after sedimentation. Water passes through filter media such as sand, gravel, activated carbon, or membranes to capture smaller particles, including microorganisms. Filtration improves water clarity and prepares it for effective disinfection. This is relevant to property valuation because filtration systems often include specialized vessels, media, membranes, and backwash systems, each with different service lives and replacement costs that should be reflected separately in valuations.

Fire-Resistive Rating
A time-based measure (e.g., 1 hour, 2 hours) of how long a construction material or assembly can withstand fire exposure before failing.

Fire Resistive – Construction Class 6

This Verisk/ISO Construction Classification requires walls of masonry materials, including reinforced concrete at least four inches thick, hollow masonry that’s at least 12 inches thick, or hollow masonry between eight and 12 inches thick with a fire resistance rating of at least two hours. Exterior bearing walls must be made of noncombustible materials, but exterior nonbearing walls may be built from combustible materials. Fire‐resistance rating: Not less than 2 hours. Advantages: Uses load‐bearing materials that resist fire. Examples: High‐rise office buildings, condos or parking garages.

Flood Zone
A geographic area designated by FEMA or other agencies based on the level of flood risk. Zones impact insurance requirements and premiums.

Force Majeure
A contract clause or event referring to unforeseeable circumstances (e.g., natural disasters, war) that prevent fulfillment of contractual obligations.

Frame – Construction Class 1

This Verisk/ISO Construction Classification includes buildings with interior walls, floors, roofs, and supports constructed of combustible materials, typically wood. Exterior walls may be made of combustible materials or may be comprised of noncombustible or slow-burning construction. Masonry veneers and metal cladding don’t affect the frame classification. Fire‐resistance rating: None. Advantages: Easy to erect, economical. Examples: Housing, with no more than 3‐4 stories.

G

Green Building
A structure designed to be environmentally responsible and resource-efficient throughout its life cycle. In risk management, these buildings may present unique appraisal or valuation considerations due to specialized materials or systems.

H

Hard Market
A phase in the insurance cycle characterized by higher premiums, reduced capacity, and stricter underwriting due to increased losses or economic pressures.

Hazard
A source or situation with the potential to cause harm to people, property, or operations. Common hazards include fire, wind, and equipment failure.

Hazard Mitigation
Actions taken to reduce or eliminate long-term risk to people and property from natural and man-made hazards.

Historical Building
A structure recognized for its architectural, cultural, or historical significance. Often subject to special preservation guidelines and may require tailored insurance or valuation approaches.

HVAC System
Heating, ventilation, and air conditioning systems that are often considered critical equipment in property assessments and risk mitigation.

I

Indirect Loss
A financial loss that is a consequence of a direct property loss, such as lost income or increased operational expenses.

Improved Property
Land that has been developed or modified with structures or other enhancements that increase its value and insurability.

Insurable Value
The total amount for which a property or asset should be insured, often based on replacement cost or actual cash value.

Insurance Premium
The amount an organization pays for insurance coverage over a specified period. Premiums are influenced by the insured value, risk characteristics, loss history, and rating factors.

Insurance Rate
The cost per unit of insurance (often per $100 of insured value) used to calculate the premium. Rates are determined by insurers based on risk exposure, historical losses, and underwriting guidelines.

Insurance Rating
The process insurers use to assign a level of risk to a property, which affects the rate and premium. Ratings are influenced by factors like COPE data, protection class, and historical claims.

Insurance to Value (ITV)
The ratio of the insured amount of a property to its full replacement cost. A low ITV can result in penalties during claims due to underinsurance.

Insured
The individual, organization, or entity covered under an insurance policy who receives financial protection from covered risks.

ISO Construction Class 1 (Frame)
Buildings with exterior walls, floors, and roofs made of wood or other combustible materials. Highest fire risk among the classes.

ISO Construction Class 2 (Joisted Masonry)
Buildings with noncombustible exterior walls (typically brick, block, or stone) and combustible wood-framed roofs and floors.

ISO Construction Class 3 (Non-Combustible)
Buildings with noncombustible walls, floors, and roofs, usually made from metal or concrete. These materials limit fire spread.

ISO Construction Class 4 (Masonry Non-Combustible)
Buildings with masonry or fire-resistive walls and noncombustible floor and roof structures. Lower fire risk than Classes 1 or 2.

ISO Construction Class 5 (Modified Fire-Resistive)
Buildings with structural members that offer limited fire resistance (usually 1 to 2 hours), such as pre-cast concrete or protected steel.

ISO Construction Class 6 (Fire-Resistive)
Buildings designed to resist fire for two hours or more, using reinforced concrete, fire-rated walls, and protected steel framing.

J

Joint Loss Agreement
An insurance provision used when multiple insurers (e.g., property and boiler/machinery carriers) might be involved in a loss, outlining how claims are to be shared.

Joisted Masonry – Construction Class 2

In Verisk/ISO Construction Classifications, these are buildings in which combustible materials like wood are combined with other materials such as brick or stone veneer, glass block, or adobe. Concrete block, masonry or reinforced masonry load-bearing exterior walls also fit into this classification. Typically, these buildings are constructed with wood frames, roofs and floors. Fire‐resistance rating: Not less than 1 hour. Advantages: Harder to ignite, more structural stability. Examples: housing, small office with no more than 3‐4 stories.

K

Key Risk Indicator (KRI)
A measurable value that signals increasing risk exposure in a specific area. KRIs are used to proactively monitor potential threats to operational or financial stability.

L

Layered Defense
A risk management strategy that combines multiple tactics and technologies (e.g., accurate data, planning, monitoring) to reduce vulnerability and improve resilience.

Liability Limit
The maximum amount an insurer will pay for covered liability claims under a policy.

Loss Control
Strategies and measures taken to reduce the frequency or severity of insurance losses, such as inspections, maintenance, or training.

Loss Prevention
Proactive efforts to reduce the likelihood of a loss occurring, such as regular inspections, training, and system upgrades.

Loss Ratio
A metric used by insurers to compare claims paid to premiums collected, helping determine policy profitability and underwriting strategy.

M

Manual Rating
The use of standardized rate tables published by a rating organization (e.g., ISO) to calculate premiums based on defined classifications and exposures.

Masonry Noncombustible – Construction Class 4

In Verisk/ISO Construction Classifications, buildings in which the exterior walls are constructed of masonry materials that are at least four inches thick or are made of fire resistive construction with a rating of no less than one hour. The floor and roof are either steel, noncombustible or slow burning materials, irrespective of the insulation used. These structures might be brick, stone, hollow concrete block or tilt‐up concrete walls with heavy steel framing. Fire‐resistance rating: Not less than 1 hour. Advantages: Uses materials that don’t readily burn. Examples: Shopping centers, office buildings, warehouses and schools.

Membrane Filtration

In water/wastewater processing, an advanced filtration process that uses semi-permeable membranes to remove fine particles, microorganisms, and dissolved contaminants from water. Common membrane systems include microfiltration, ultrafiltration, and reverse osmosis. This is relevant to property valuations because membrane filtration systems involve high-value modules, pressure vessels, and control systems with technology-driven pricing and replacement cycles, making bundled valuation particularly risky.

Minimum Premium
The lowest amount an insurer will charge for providing coverage, regardless of the calculated exposure. Often applies to policies with small schedules or limited coverage needs.

Mitigation
The process of implementing actions or improvements to reduce the frequency or severity of potential losses. Common mitigation strategies include installing sprinkler systems, upgrading roofing, or performing regular maintenance.

Mitigation Plan
A documented strategy outlining actions to reduce the likelihood or impact of specific risks. These plans are part of broader risk and resilience efforts.

Modified Fire Resistive – Construction Class 5

In Verisk/ISO Construction Classifications, buildings with exterior walls, floors and roofs made up of either masonry materials that are between four and eight inches thick OR fire resistive materials rated for at least one hour but under two hours. Exterior nonbearing walls may be slow‐burning or combustible. Exterior bearing walls must be noncombustible or made of masonry. Protected steel supports for floors and roofs are common. Fire‐resistance rating: Less than 2 hours, but greater than 1 hour. Advantages: Allows greater height and area. Examples: High and mid‐rise office buildings and condos.

N

Named Perils Policy
An insurance policy that only covers specific perils listed in the contract, such as fire, theft, or vandalism.

Non-Combustible
Materials or building elements that do not ignite or contribute to flame spread under fire exposure. Often used in low-risk construction classes.

Noncombustible – Construction Class 3

In Verisk/ISO Construction Classifications, buildings with exterior walls, floors, roofs and supports made up of slow‐burning and/or noncombustible materials. Steel frames are common in this classification, and slow-burning fiberglass insulation may be used. Fire‐resistance rating: None. Advantages: Easy to erect, economical. Examples: Warehouses and manufacturing facilities.

O

Occupancy Type
The use or function of a building (e.g., residential, educational, industrial), which, in combination with construction class, affects insurance risk.

Onsite Appraisal
A valuation conducted through physical inspection of a property or asset, providing detailed, firsthand data for insurance and planning.

Operational Risk
The potential for loss resulting from failed internal processes, human error, or external events that affect business operations.

Ordinance or Law Coverage
Insurance coverage that pays for the increased costs of construction or repair required to comply with local building codes, zoning laws, or regulations after a covered loss.

Overinsurance
A condition where a property or asset is insured for more than its replacement or actual cash value, potentially resulting in higher premiums without added benefit.

P

Peril
In the insurance industry, specific risk or cause of loss covered by an insurance policy, such as wind, hail, vandalism, or theft.

Primary Treatment

A wastewater treatment stage that removes readily settleable and floatable solids through sedimentation. Wastewater flows through primary clarifiers where solids settle to form sludge and oils and grease rise to the surface for removal. Primary treatment significantly reduces suspended solids but does not remove dissolved pollutants. This is relevant to property valuation because primary clarifiers, sludge collection mechanisms, and associated structures are major capital assets with unique construction and mechanical components that require individual consideration in replacement cost valuations.

Policy Management
In the insurance industry, the administrative process of tracking, updating, and renewing insurance policies, including managing terms, endorsements, and documentation.

Preliminary Treatment

The initial stage of wastewater treatment that removes large debris and heavy materials from incoming wastewater. This process typically uses screens to capture items such as sticks, rags, and plastics, along with grit chambers to settle sand, gravel, and other dense particles. Preliminary treatment protects downstream equipment and helps ensure efficient operation of subsequent treatment processes. This is relevant to property valuation because preliminary treatment systems often include specialized mechanical screens, grit removal equipment, and conveyors that represent distinct replacement costs and should be valued separately from downstream treatment assets.

Proof of Loss
A formal statement provided by the insured to the insurer detailing the amount and circumstances of a loss, required before a claim is processed.

Property Risk Management
The process of identifying, evaluating, and mitigating risks associated with physical assets, including buildings, equipment, and infrastructure.

Property Schedule
A structured list of properties or assets, including their values and attributes, submitted for insurance underwriting and risk planning.

Protection Class
A fire protection rating assigned to a building’s location based on available firefighting resources, such as hydrant or proximity and fire department.

Public Entity Risk
Risks specifically associated with municipalities, school districts, utilities, and other government-run organizations, often requiring tailored insurance strategies and risk management tools.

Q

Qualitative Risk Assessment
A non-numerical evaluation of risks based on subjective judgment, such as expert opinion or scenario analysis, often used when quantitative data is limited.

Quantitative Risk Assessment

A numerical approach to evaluating risks by assigning measurable values to the probability and potential impact of various threats. This method relies on data, modeling, and statistical analysis to support decision-making and prioritize mitigation efforts.

R

Rate Adequacy
A measure of whether current insurance rates are sufficient to cover expected losses and expenses, often reviewed in the context of pool sustainability or insurer profitability.

Rating Modifier
An adjustment applied to a base insurance rate to reflect specific risk factors, such as building improvements, fire protection systems, or geographic hazards.

Reinsurance
Insurance purchased by insurers or risk pools to protect themselves against large or catastrophic losses.

Replacement Cost Value (RCV)
The cost to replace an insured item or property with a new one of like kind and quality, without deducting for depreciation.

Reproduction Cost Value
The estimated cost to rebuild a property using the same materials, construction methods, and design as the original, regardless of current building codes or modern materials. It generally is used for historical properties or properties with rare/unique features.

Resilience Planning
A proactive approach to risk management focused on preparing for, responding to, and recovering from disruptions to maintain continuity.

Retention Limit/Self-Insured Retention (SIR)
The maximum amount of loss a self-insured entity or risk pool retains before reinsurance coverage applies.

Risk Assessment
The process of identifying, analyzing, and evaluating risks to determine their impact and likelihood, forming the foundation for mitigation strategies.

Risk Mitigation
The implementation of strategies to reduce the severity or likelihood of a risk, including preventative maintenance, training, and system upgrades.

Risk Pool
A group of public entities or organizations that collectively share risks through pooled resources and mutual insurance agreements.

Risk Register
A centralized document or tool used to log identified risks, assess their likelihood and impact, and track mitigation actions.

RiskStar
Centurisk’s cloud-based risk management platform designed to centralize COPE data, property details, inspections, and valuation tools to support smarter insurance and resilience planning.

Risk Management Information System (RMIS)
A software platform used to collect, analyze, and manage risk-related data such as claims, policies, inspections, COPE details, and property valuations.

S

Scalability
The ability of a system or process to grow and adapt as an organization’s size, complexity, or data volume increases—especially important in risk management information system (RMIS) and property risk management solutions.

Schedule Rating
A method of adjusting base insurance rates by applying debits or credits based on specific property characteristics or risk improvements.

Secondary Treatment

In water/wastewater treatment, a biological treatment process that removes dissolved and remaining suspended organic matter after primary treatment. This stage commonly uses activated sludge systems or biological filters, where microorganisms break down organic pollutants. Secondary clarifiers then separate the biological solids from the treated water, significantly reducing biochemical oxygen demand (BOD) and suspended solids. This is relevant to property valuation because secondary treatment systems often contain high-value aeration equipment, blowers, tanks, and control systems that are costly to replace and should not be grouped with primary or tertiary treatment assets.

Sedimentation

A water treatment process in which flocculated particles are allowed to settle out of the water by gravity. Water flows through sedimentation basins or clarifiers, where the settled material (sludge) is collected and removed. This stage significantly reduces suspended solids prior to filtration. This is relevant to property valuation because sedimentation basins and clarifiers involve large structural components and mechanical collection systems that represent substantial replacement exposure and merit individual valuation.

Self-Insured Retention (SIR) / Retention Limit
The amount a risk pool or entity agrees to pay out-of-pocket before insurance coverage begins, similar to a deductible but specific to self-insurance programs.

Sludge Dewatering Equipment

In water/wastewater processing, mechanical systems used to remove excess water from sludge after digestion or thickening, reducing volume and weight for disposal or reuse. Common equipment includes centrifuges, belt filter presses, and screw presses. This is relevant to property valuations because dewatering equipment consists of specialized, high-cost machinery with shorter service lives than concrete structures, requiring separate valuation to avoid understating replacement exposure

Soft Market
A period in the insurance cycle characterized by lower premiums, broader coverage, and increased competition among insurers.

Solids Processing

The treatment and management of sludge and biosolids generated during primary and secondary wastewater treatment. Solids processing typically includes thickening, digestion, and dewatering to reduce volume, stabilize organic material, and prepare solids for safe disposal or beneficial reuse, such as land application. The goal is to minimize environmental impact while managing treatment byproducts effectively. This is relevant to property valuations because solids processing systems often operate as a parallel treatment stream with dedicated tanks, digesters, and dewatering equipment that carry significant replacement costs and should be scheduled separately from liquid treatment processes.

Sprinklered Building
A building equipped with an automatic sprinkler system designed to suppress or control fires and reduce potential damage. Sprinkler systems come in two types: wet and dry. SEE Wet Sprinkler System, Dry Sprinkler System

Statement of Values (SOV)
A standardized document submitted to insurers that summarizes the total value and details of insured properties, often required for underwriting and premium calculation.

Subrogation
The legal process by which an insurer seeks reimbursement from a third party that caused an insurance loss after the insurer has paid the claim.

T

Tertiary Treatment

The final stage of wastewater treatment that further improves effluent quality before discharge or reuse. Tertiary treatment may include filtration, nutrient removal, chemical treatment, or disinfection using chlorine or ultraviolet light. This stage ensures the treated water meets regulatory and environmental standards. This is relevant to property valuation because tertiary treatment frequently involves advanced and highly specialized equipment with rapidly evolving technology, making accurate, up-to-date valuations critical to avoid underinsurance.

TIV Allocation
The method of distributing a total insured value across individual properties or assets for the purposes of underwriting or premium distribution.

Total Cost of Risk (TCOR)
The complete cost of managing risk, including insurance premiums, retained losses, administrative expenses, and loss control investments.

Total Insurable Value (TIV)
The combined value of all property, contents, and income-producing capabilities insured under a policy, often used to calculate premiums.

Total Loss

A scenario where the cost to repair or replace an item exceeds its insured value, triggering full replacement treatment under policy terms (actual or constructive).  This is relevant to property valuations because understanding total loss helps in planning adequate limits, especially for high value or unique assets.

U

Underinsurance
A situation where a property or asset is insured for less than its actual value, which can lead to significant financial loss after a claim.

Underwriter
A professional who evaluates insurance applications and determines the terms, conditions, and pricing of coverage based on risk assessment.

Underwriting
The process insurers use to evaluate risk, determine eligibility for coverage, and set appropriate premiums.

Unprotected Structure
A building that lacks modern fire protection features such as sprinklers or fire-rated construction, increasing the property’s risk profile.

User Permissions
Role-based access settings in software systems that allow organizations to control which users can view, edit, or manage specific data or tools. In Centurisk’s RiskStar, user permissions allow users to see only the functionality they need, and nothing they don’t.

USPAP
Uniform Standards of Professional Appraisal Practice—national standards developed by The Appraisal Foundation that govern appraisal ethics and performance.

USPAP Appraisal
A property valuation conducted in accordance with USPAP standards, ensuring compliance, objectivity, and documentation in the appraisal process.

UV Disinfection System

In water/wastewater processing, a disinfection method that uses ultraviolet light to inactivate microorganisms in treated water without chemical additives. UV systems typically include reactors, lamps, power supplies, and monitoring controls. This is relevant to property valuations because UV disinfection systems are specialized, electronics-heavy assets with regulatory performance requirements and frequent component replacement needs, requiring distinct valuation from traditional chemical disinfection systems.

V

Valuation Clause
A section of a policy that defines how the value of insured property will be determined at the time of a loss such as the replacement cost value (RCV), actual cash value (ACV), agreed value, etc.

Valuation Lag
A delay between property value changes and when those changes are reflected in the organization’s insurance data, which can result in underinsurance or inaccurate premiums.

Valuation Trending
A method for adjusting property values over time based on inflation, construction cost indexes, or regional market trends, often used in between appraisal years or when full reappraisal isn’t feasible.

Virtual Valuation
The process of estimating a property’s value using remote tools such as satellite imagery, historical data, and digital walkthroughs, rather than in-person site visits.

W

Wastewater Treatment Plant
A facility that removes contaminants from sewage and industrial wastewater, requiring specialized equipment and risk considerations due to environmental and operational factors.

Water Treatment Plant
A facility that processes raw water to make it safe for public consumption, often involving complex systems and infrastructure with specific appraisal and insurance requirements.

Wet Sprinkler System
A fire suppression system where water is constantly present in the pipes, allowing for immediate discharge upon sprinkler head activation.

Wind Missile
A piece of debris or loose material that becomes airborne during high-wind events, posing significant risks to buildings, windows, and roofs.

Wind Zone
A classification indicating a region’s susceptibility to wind-related hazards, used to guide building codes and insurance underwriting.

Workflows
Defined sequences of steps or tasks within a risk management or appraisal system, often customized to ensure consistent data collection, review, and approval processes.

X

X-Factor
An unpredictable element or external variable that can significantly influence risk, often used informally in discussions of emerging threats or uncertain outcomes.

Y

Yield Management
A strategy typically used in financial or operational contexts to maximize returns. In risk management, it may apply to optimizing resources or coverage limits based on exposure data.

Z

Zone of Influence
The geographic area surrounding a facility or asset where risks such as flooding, fire spread, or hazardous material exposure can extend. Important for site assessments and COPE analysis.