STATE FARM ESTIMATICS EXAM REVISION
HANDBOOK 2026 CLAIM EVALUATION AND
INSURANCE ESTIMATE ACCURACY
◉ Basic Perils in Homeowners Policy.
Answer: There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft,
windstorm, vandalism, malicious mischief, theft.
◉ Basic Property Policy Structure (DICEE).
Answer: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
◉ Blanket Insurance.
Answer: Type of insurance policy that covers more than one item of
property at a single location or one or more items of property at
multiple locations
◉ Builders Risk Coverage Form.
,Answer: Commercial property coverage forms that covers
commercial, residential, or farm buildings that are under
construction or during remodeling.
◉ Cargo Insurance.
Answer: Type of ocean marine insurance that covers goods while
they are in transit over water.
◉ Binder.
Answer: Oral or written statement that provides immediate
insurance protection for a specified period; designed to provide
temporary coverage until a policy is issued or denied.
◉ BOP.
Answer: Package policy designed to provide broad property and
liability coverage for small businesses; eligibility requirements are
stricter than the CPP.
◉ Business Income Policy.
Answer: Pays for loss of income that the insured sustains due to a
direct physical loss from a covered peril that forces the insured to
suspend operations until the property can be repaired, rebuilt, or
replaced with reasonable speed; available with or without extra
expense coverage.
, ◉ Causes of Loss Form.
Answer: Separate form used with the commercial property coverage
part of the commercial package policy that lists covered perils and
exclusions. Several different versions provide increasingly broader
coverage from basic to broad to special.
◉ Condominium Association Coverage Form.
Answer: Commercial Property coverage form that covers the
buildings in a condominium complex. Does not cover condominium
owner's personal property.
◉ Coverage D on a HO Policy - Loss of Use.
Answer: If property loss makes the residence premises
uninhabitable, the additional living expenses are covered; or if a
covered loss to the insured's property makes a part of the residence
premises uninhabitable that is rented to others or held for rental by
the insured, this coverage will pay the fair rental value.
◉ coverages excluded on dwelling policy.
Answer: Theft, vandalism, and malicious mischief excluded on basic
policy. Liability excluded on all policies.
◉ Coverage B of homeowners policy.
HANDBOOK 2026 CLAIM EVALUATION AND
INSURANCE ESTIMATE ACCURACY
◉ Basic Perils in Homeowners Policy.
Answer: There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft,
windstorm, vandalism, malicious mischief, theft.
◉ Basic Property Policy Structure (DICEE).
Answer: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
◉ Blanket Insurance.
Answer: Type of insurance policy that covers more than one item of
property at a single location or one or more items of property at
multiple locations
◉ Builders Risk Coverage Form.
,Answer: Commercial property coverage forms that covers
commercial, residential, or farm buildings that are under
construction or during remodeling.
◉ Cargo Insurance.
Answer: Type of ocean marine insurance that covers goods while
they are in transit over water.
◉ Binder.
Answer: Oral or written statement that provides immediate
insurance protection for a specified period; designed to provide
temporary coverage until a policy is issued or denied.
◉ BOP.
Answer: Package policy designed to provide broad property and
liability coverage for small businesses; eligibility requirements are
stricter than the CPP.
◉ Business Income Policy.
Answer: Pays for loss of income that the insured sustains due to a
direct physical loss from a covered peril that forces the insured to
suspend operations until the property can be repaired, rebuilt, or
replaced with reasonable speed; available with or without extra
expense coverage.
, ◉ Causes of Loss Form.
Answer: Separate form used with the commercial property coverage
part of the commercial package policy that lists covered perils and
exclusions. Several different versions provide increasingly broader
coverage from basic to broad to special.
◉ Condominium Association Coverage Form.
Answer: Commercial Property coverage form that covers the
buildings in a condominium complex. Does not cover condominium
owner's personal property.
◉ Coverage D on a HO Policy - Loss of Use.
Answer: If property loss makes the residence premises
uninhabitable, the additional living expenses are covered; or if a
covered loss to the insured's property makes a part of the residence
premises uninhabitable that is rented to others or held for rental by
the insured, this coverage will pay the fair rental value.
◉ coverages excluded on dwelling policy.
Answer: Theft, vandalism, and malicious mischief excluded on basic
policy. Liability excluded on all policies.
◉ Coverage B of homeowners policy.
