Property Damage Assessment Flashcards
7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Damage Assessment flashcards as text
When assessing storm damage to a roof, an adjuster discovers both hail impact and pre-existing wear. How should the adjuster handle this situation?
Answer: Allocate damages between storm-caused loss and pre-existing deterioration
Adjusters must segregate covered storm damage from pre-existing wear and apply payment only to the portion of loss caused by the covered peril.
Which document serves as the primary reference for pricing repair materials and labor when preparing a property damage estimate?
Answer: A recognized estimating database such as Xactimate
Industry-standard estimating software like Xactimate provides current, regionally adjusted pricing for materials and labor used in loss estimates.
An adjuster inspects a fire-damaged kitchen and notes the cabinets were a discontinued custom style. What valuation method best addresses this scenario?
Answer: Replacement cost of the closest comparable available product
When exact replacement is unavailable, the adjuster uses the cost of the closest comparable item currently available to restore the insured to pre-loss condition.
What does 'matching' refer to in a property damage claim context?
Answer: Replacing undamaged portions to achieve a uniform appearance with repaired areas
Matching involves replacing or supplementing undamaged materials so the repaired area blends uniformly with the rest of the structure, as required by many policy provisions.
Under a replacement cost value (RCV) policy, when is the recoverable depreciation typically released to the insured?
Answer: Once repairs are actually completed and documented
Under most RCV policies, the insured first receives ACV and can recover the withheld depreciation only after providing proof that repairs have been completed.
A property adjuster observes that the basement flooded after a heavy rainstorm caused a nearby river to overflow its banks. Which coverage scenario most likely applies?
Answer: The loss is likely excluded from homeowners but covered under an NFIP flood policy
Standard homeowners policies exclude flood damage from surface water overflow; such losses are typically covered only under a separate NFIP or private flood insurance policy.
What is the purpose of an 'examination under oath' (EUO) in a property damage claim?
Answer: To give the insurer a formal right to question the insured under oath to investigate the claim
An EUO is a contractual right granted to insurers that allows them to formally question the insured under oath to gather facts and detect potential fraud.