CPR Insurance Estimating & Xactimate 3 — Questions and Answers
Question 1: A supplemental estimate is submitted after an initial estimate is approved. What is the PRIMARY reason supplements are necessary in restoration?
- To increase profit margins
- To account for hidden damage discovered during work (Correct answer)
- To revise labor rates retroactively
- To add unrelated improvements requested by the homeowner
Correct answer: To account for hidden damage discovered during work
Supplements address concealed or latent damage that could not be identified during the initial inspection and scope development.
Question 2: In insurance restoration estimating, 'O&P' refers to overhead and profit. What percentage does Xactimate typically default to for general contractors?
- 10% overhead / 5% profit
- 10% overhead / 10% profit (Correct answer)
- 15% overhead / 10% profit
- 20% overhead / 10% profit
Correct answer: 10% overhead / 10% profit
Xactimate's standard default for general contractor overhead and profit is 10% overhead and 10% profit, totaling 20% combined.
Question 3: Which document does a carrier typically use to formally communicate disagreement with line items in a restorer's Xactimate estimate?
- Certificate of Insurance
- Denial of Claim Letter
- Desk Review or Field Adjuster's Report (Correct answer)
- Proof of Loss Form
Correct answer: Desk Review or Field Adjuster's Report
A desk review or field adjuster's report outlines the carrier's position on disputed or removed line items line by line.
Question 4: When estimating contents pack-out and storage for a residential water loss, which Xactimate category is used?
- CNT — Contents (Correct answer)
- WTR — Water Damage
- PKG — Packaging
- STR — Storage
Correct answer: CNT — Contents
Contents-related line items including pack-out, inventory, and storage fall under the CNT division in Xactimate.
Question 5: A restorer estimates 500 SF of Category 3 water-damaged subfloor removal. The correct Xactimate line item should reflect:
- Standard subfloor removal only
- Hazardous material removal with additional protective measures (Correct answer)
- Mold remediation protocols
- Fire damage cleanup procedures
Correct answer: Hazardous material removal with additional protective measures
Category 3 water (grossly contaminated) requires hazardous-level PPE and disposal protocols, which must be reflected in the line items selected.
Question 6: In Xactimate's sketch module, what is the purpose of the 'Area' feature versus the 'Room' feature?
- Area calculates only ceiling measurements; Room calculates only floor measurements
- Area allows irregular polygon shapes; Room is limited to rectangles
- Area is used for exterior spaces; Room is for interior spaces only (Correct answer)
- Area auto-applies flooring; Room auto-applies paint
Correct answer: Area is used for exterior spaces; Room is for interior spaces only
In Xactimate sketch, Area is used to define exterior surfaces such as roofs and decks, while Room is used for interior spaces.
Question 7: What is the purpose of the 'Xactimate price list date' when submitting an estimate to a carrier?
- It determines which carrier's rates apply
- It establishes the market pricing data used for all line items (Correct answer)
- It sets the depreciation schedule for contents
- It controls the overhead and profit percentages
Correct answer: It establishes the market pricing data used for all line items
The price list date locks in the regional market pricing data so all line item costs reflect rates for that specific time period.
CPR Insurance Estimating & Xactimate 3
A supplemental estimate is submitted after an initial estimate is approved.
What is the PRIMARY reason supplements are necessary in restoration?