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 depreciation method allocates equal amounts of value loss across each year of an item's useful life?
Answer: Straight-line method
The straight-line method divides the depreciable value evenly across the item's useful life, making it the most common method for property insurance depreciation calculations.
An estimate includes 'general conditions' as a line item. What costs does this typically cover?
Answer: Job-site overhead such as supervision, portable toilets, and dumpsters
General conditions cover job-site overhead costs—supervision, temporary facilities, equipment rentals, and site management—that are necessary but not tied to a specific trade.
Under the replacement cost value (RCV) policy, when is the recoverable depreciation typically released to the insured?
Answer: After repairs are completed and receipts are submitted
Recoverable depreciation is released after the insured completes repairs and provides proof of completion, ensuring the funds are used to restore the property.
A property claim estimate includes a line for 'sales tax on materials.' In which scenario is sales tax most commonly excluded from the estimate?
Answer: When the insured is a tax-exempt entity such as a municipality or nonprofit
Tax-exempt entities (municipalities, nonprofits) do not pay sales tax on materials, so including it in an estimate would overstate the actual repair cost.
When estimating storm damage to a wood fence, which measurement method is standard?
Answer: Measure total linear feet of damaged fence sections
Fencing is priced by linear foot in estimating platforms, so damaged sections are measured in linear feet for accurate pricing.
A claim involves vehicle impact damage to a brick exterior wall. Which trade line items would typically appear in the structural repair estimate?
Answer: Masonry repair, framing repair, and exterior finish restoration
Vehicle impact can damage the masonry veneer, underlying framing, and exterior finishes, so estimates typically include all three trade scopes for complete restoration.
Which factor most directly affects the local labor cost multiplier applied in estimating software?
Answer: The geographic location of the loss
Estimating software applies geographic cost multipliers based on local labor markets, union prevalence, and material availability, all of which vary by location.