Property Damage Estimation Flashcards
7 cards from real CCP 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 Estimation flashcards as text
Which document serves as the legally binding basis for determining what property losses are covered and to what extent?
Answer: The insurance policy declarations and conditions
The insurance policy—including declarations, insuring agreement, conditions, and endorsements—is the controlling legal document that defines coverage scope and limits.
When a property claim involves both wind and flood damage, and the homeowner has separate policies for each, adjusters must perform what task?
Answer: Segregate damages attributable to each peril for proper allocation
When multiple perils and policies are involved, adjusters must carefully segregate damages by cause (wind vs. flood) to ensure each policy pays only for the losses it covers.
An estimate for mold remediation in a bathroom includes containment, HEPA vacuuming, and antimicrobial treatment. Which additional cost is routinely required but often overlooked?
Answer: Post-remediation clearance testing by an industrial hygienist
Post-remediation clearance testing by a certified industrial hygienist verifies that mold has been successfully removed and is commonly required but often excluded from initial estimates.
Under a replacement cost policy, the actual cash value (ACV) payment at the time of loss is calculated as:
Answer: RCV minus the deductible and depreciation
ACV is calculated by subtracting both the applicable depreciation and the policy deductible from the replacement cost value, representing what the insurer pays before repairs are completed.
A claimant disputes the insurer's estimate, and both parties cannot reach agreement. Which formal process allows each party to select an independent appraiser to resolve the disagreement?
Answer: Appraisal clause invocation
The appraisal clause in standard homeowners policies provides a structured process where each party hires an independent appraiser, and a neutral umpire resolves differences, resulting in a binding award.
Which of the following is the correct approach when estimating repairs for a historic property with custom millwork that cannot be replicated with stock materials?
Answer: Obtain bids from specialty millwork contractors and document custom fabrication costs
Custom millwork that cannot be replicated with stock materials requires specialty contractor bids to accurately capture fabrication costs necessary to restore the property to pre-loss condition.
Which element distinguishes a 'supplemental claim' from the original property damage estimate?
Answer: A supplemental addresses damages or costs discovered after the initial estimate was agreed upon
A supplemental claim covers legitimate additional damages or costs identified after the original estimate was finalized, such as hidden damage uncovered during demolition.