CALA Property Damage Assessment 4

Question 1

A loss-of-use claim is filed after a house fire makes the home uninhabitable. Under Coverage D of an HO-3, which expense is NOT typically covered?

Accepted Answer

The mortgage payment on the damaged home

Answer

Coverage D covers the increased cost of living (hotel, rent, excess food costs) but does not pay for normal ongoing expenses like mortgage payments the insured would have regardless of the loss.

Question 2

When estimating the cost to repair a structure, an adjuster applies a regional cost factor. What does this factor account for?

Accepted Answer

Differences in labor and material costs between geographic markets

Answer

Regional cost factors adjust base estimates to reflect local labor rates and material costs, which vary significantly across different US markets.

Question 3

Which of the following best defines 'subrogation' in property insurance?

Accepted Answer

The insurer's right to pursue a third party responsible for a loss after paying the insured's claim

Answer

Subrogation allows the insurer who paid the insured's claim to step into the insured's shoes and recover from the negligent third party who caused the loss.

Question 4

An adjuster re-inspects a property and finds damage items not in the original estimate. What document is used to add these items to the claim?

Accepted Answer

A supplemental claim or supplemental estimate

Answer

A supplement is an additional estimate that captures discovered or additional damages not included in the original estimate, added to the existing claim without reopening it.

Question 5

Under the appraisal process in a homeowners policy, what is the role of the 'umpire'?

Accepted Answer

A neutral third party who resolves disagreements between the two appraisers

Answer

When appraisers appointed by the insurer and insured cannot agree, they select an umpire whose decision, when joined by either appraiser, is binding on both parties.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA Property Damage Assessment 4