Insurance Documentation and Claims Flashcards
6 cards from real Flood Restoration practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Documentation and Claims flashcards as text
What is the standard deductible under a typical NFIP flood insurance policy for a residential building?
Answer: It varies by policy but is typically $1,000 to $5,000 for building coverage
NFIP residential building policy deductibles typically range from $1,000 to $5,000 depending on the specific policy terms selected by the policyholder at purchase.
What documentation should a flood restoration contractor collect immediately upon arrival at a loss site?
Answer: Signed authorization to proceed, photo documentation of all damage, and pre-existing condition notes
Contractors must collect a signed work authorization, comprehensive photo documentation of all damage, and notes on pre-existing conditions before beginning any work.
What is 'overhead and profit' (O&P) in an Xactimate restoration estimate?
Answer: A standard markup added to restoration estimates to cover contractor business costs and profit margin
Overhead and profit is a standard percentage markup (typically 10% overhead and 10% profit) added to restoration estimates to cover contractor operating costs and reasonable profit.
When should a flood restoration contractor notify the insurance carrier about discovering hidden structural damage?
Answer: Immediately upon discovery, before proceeding with additional demolition
Contractors must notify the insurer immediately upon discovering hidden damage so the adjuster can authorize the additional scope before further work proceeds.
What is the maximum building coverage limit under an NFIP standard flood policy for a residential property?
Answer: $250,000
NFIP standard residential building coverage is capped at $250,000, which may be supplemented by private excess flood insurance for higher-value properties.
Why is it important to distinguish between 'mitigation' and 'reconstruction' costs in a flood claim?
Answer: Insurers may process them separately under different coverage provisions or with different adjusters
Mitigation (emergency water removal and drying) and reconstruction (rebuilding) may be handled under different claim provisions, by different adjusters, or paid at different times.