CALA Property Damage Assessment 3

Question 1

A homeowner's detached garage is destroyed by fire. The main dwelling is undamaged. Under a standard HO-3 policy, which coverage section applies to the garage?

Accepted Answer

Coverage B – Other Structures

Answer

Coverage B – Other Structures applies to structures on the residence premises that are separated from the dwelling by clear space, including detached garages.

Question 2

When measuring roof square footage for an estimate, one 'square' of roofing material equals how many square feet?

Accepted Answer

100 square feet

Answer

In roofing, one square equals 100 square feet of roof surface, which is the standard unit used when ordering and pricing roofing materials.

Question 3

An adjuster finds that a burst pipe caused water damage to drywall, flooring, and personal property. Which step should be taken first after inspecting the loss?

Accepted Answer

Determine whether the insured mitigated the loss to prevent further damage

Answer

Policyholders have a duty to mitigate after a loss; the adjuster must verify that reasonable steps were taken to prevent further damage before calculating the full claim.

Question 4

What is 'betterment' in the context of property damage claims?

Accepted Answer

A deduction applied when repairs restore the property to a condition better than its pre-loss state

Answer

Betterment is a reduction in claim payment when the repair or replacement leaves the insured in a better position than before the loss, such as replacing worn materials with new ones.

Question 5

A commercial building adjuster needs to determine the building's insurable value. Which method calculates the cost to rebuild the structure at current prices without regard to land value?

Accepted Answer

Replacement cost new (RCN) approach

Answer

The replacement cost new (RCN) approach estimates the current cost to construct a building of like kind and quality, excluding land, which is the standard for property insurance valuation.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA Property Damage Assessment 3