CCP Property Damage Estimation 4

Question 1

A homeowner's policy covers 'additional living expenses' (ALE). Which cost is typically NOT covered under ALE?

Accepted Answer

Mortgage payments on the damaged home

Answer

Mortgage payments are a fixed obligation the insured would incur regardless of displacement and are not considered additional expenses caused by the loss.

Question 2

During an exterior damage inspection, an adjuster notices the siding is a discontinued profile. The insurer's obligation under a standard homeowners policy is to:

Accepted Answer

Replace the entire side of the house to achieve a reasonable match

Answer

When damaged siding cannot be matched, standard practice requires replacing the entire affected elevation to achieve a reasonably uniform appearance, not the whole structure.

Question 3

What is the primary purpose of a 'scope of loss' document in property damage estimation?

Accepted Answer

To detail all items and areas requiring repair or replacement

Answer

A scope of loss identifies every damaged component, required repair action, and quantity, forming the foundation from which a cost estimate is built.

Question 4

An adjuster estimates interior painting after water damage. Which area is most commonly missed in painting estimates?

Accepted Answer

Trim, baseboards, and door casings

Answer

Trim, baseboards, and door casings are frequently omitted from painting estimates despite requiring painting when walls are repainted, creating supplemental claim issues.

Question 5

Which condition would most likely support a total loss determination for a residential structure?

Accepted Answer

Repair costs exceeding 80% of the structure's actual cash value

Answer

While state laws vary, many jurisdictions use a threshold (commonly 50-80% of ACV) to determine constructive total loss, and repair costs near or above ACV strongly support a total loss finding.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Property Damage Estimation 4