CA Loss Assessment & Damage Valuation Flashcards
6 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CA Loss Assessment & Damage Valuation flashcards as text
When adjusting a water damage claim, which factor most directly affects the scope of drying equipment needed?
Answer: The moisture readings and affected square footage
Moisture meter readings and the square footage of affected areas determine the category and quantity of drying equipment required per IICRC standards.
A California adjuster discovers hidden mold during a water damage inspection. What is the proper course of action?
Answer: Document it and include remediation costs in the estimate if covered by the policy
The adjuster must document the mold, determine whether the policy covers mold remediation, and include applicable costs in the estimate if coverage applies.
Which of the following best describes 'code upgrade' coverage in a property insurance policy?
Answer: Coverage for the added cost of repairing to current building codes after a covered loss
Code upgrade (ordinance or law) coverage pays the additional cost to bring a repaired or rebuilt structure into compliance with current building codes after a covered loss.
What does 'insurable interest' mean in the context of a California property claim?
Answer: The insured's financial stake in the property that would result in a loss if the property is damaged
Insurable interest requires that the insured would suffer a financial loss if the property were damaged, which is a fundamental requirement for a valid insurance contract.
When a California adjuster determines a loss is caused by both a covered and an excluded peril acting concurrently, which doctrine often applies?
Answer: Efficient proximate cause doctrine
California courts apply the efficient proximate cause doctrine, which looks to the dominant or moving cause of the loss to determine coverage.
An adjuster applies 'straight-line depreciation' to a 10-year-old HVAC unit with a 20-year lifespan valued at $4,000 new. What is its ACV?
Answer: $2,000
With 50% of its useful life consumed (10 of 20 years), the unit is depreciated by $2,000, leaving an ACV of $2,000.