State Farm Property/ Estimatics Exam Questions And
Correct Answers With Rationales.
State Farm Property / Estimatics Exam – Practice Questions 1–30
Question 1
Which of the following is the primary purpose of a property estimate?
A. To determine the cost to repair or replace damaged property for insurance claims
B. To evaluate real estate market value
C. To estimate mortgage rates
D. To schedule maintenance inspections
Correct Answer: A
Rationale:
Property estimates are designed to calculate repair or replacement costs accurately to settle
insurance claims fairly.
Question 2
Which of the following is the first step in a property claim estimate?
A. Inspect the property and document damage
B. Contact the contractor
C. Submit the claim immediately
D. Schedule routine maintenance
Correct Answer: A
Rationale:
A thorough inspection and documentation ensures all damages are accounted for before cost
calculations.
Question 3
Which factor most affects replacement cost in property insurance?
,A. Materials, labor, and extent of damage
B. Owner’s personal preference
C. Property color
D. Location of the nearest fire station
Correct Answer: A
Rationale:
Replacement cost is based on actual repair or rebuild expenses, including materials and labor.
Question 4
Which of the following best describes “actual cash value (ACV)”?
A. Replacement cost minus depreciation
B. Full replacement cost without adjustments
C. Market value of surrounding properties
D. Appraised land value only
Correct Answer: A
Rationale:
ACV considers wear and tear, adjusting replacement cost for depreciation to determine payout.
Question 5
Which document is required when submitting a property claim estimate?
A. Detailed damage report with photos and cost breakdown
B. Owner’s grocery receipts
C. Vehicle registration
D. Utility bill only
Correct Answer: A
Rationale:
A complete estimate report supports accurate claim processing and insurance review.
Question 6
Which of the following is considered hidden damage in property claims?
A. Structural issues behind walls, under floors, or in ceilings
B. Cracked window glass
C. Damaged garden plants
D. Peeling paint
Correct Answer: A
, Rationale:
Hidden damage is not immediately visible and requires careful inspection or specialized tools.
Question 7
Which of the following affects repair cost for a home claim?
A. Material type, labor cost, and local code requirements
B. Color of walls
C. Homeowner’s furniture style
D. Property owner’s insurance premium
Correct Answer: A
Rationale:
Repair costs depend on materials, labor rates, and compliance with building codes.
Question 8
Which of the following is true about water damage estimates?
A. Must include drying, mold remediation, and structural repair costs
B. Only accounts for visible stains
C. Ignores affected flooring
D. Only affects exterior walls
Correct Answer: A
Rationale:
Water damage often affects multiple layers, requiring complete remediation, not just surface fixes.
Question 9
Which of the following is true about roof damage estimation?
A. Include materials, labor, tear-off, disposal, and permits
B. Ignore old shingles
C. Only measure area in square feet
D. Count only the color of the roof
Correct Answer: A
Rationale:
Roof estimates must reflect full repair costs, including labor, materials, and local permitting.
Question 10
Which of the following is considered part of a structural repair estimate?
Correct Answers With Rationales.
State Farm Property / Estimatics Exam – Practice Questions 1–30
Question 1
Which of the following is the primary purpose of a property estimate?
A. To determine the cost to repair or replace damaged property for insurance claims
B. To evaluate real estate market value
C. To estimate mortgage rates
D. To schedule maintenance inspections
Correct Answer: A
Rationale:
Property estimates are designed to calculate repair or replacement costs accurately to settle
insurance claims fairly.
Question 2
Which of the following is the first step in a property claim estimate?
A. Inspect the property and document damage
B. Contact the contractor
C. Submit the claim immediately
D. Schedule routine maintenance
Correct Answer: A
Rationale:
A thorough inspection and documentation ensures all damages are accounted for before cost
calculations.
Question 3
Which factor most affects replacement cost in property insurance?
,A. Materials, labor, and extent of damage
B. Owner’s personal preference
C. Property color
D. Location of the nearest fire station
Correct Answer: A
Rationale:
Replacement cost is based on actual repair or rebuild expenses, including materials and labor.
Question 4
Which of the following best describes “actual cash value (ACV)”?
A. Replacement cost minus depreciation
B. Full replacement cost without adjustments
C. Market value of surrounding properties
D. Appraised land value only
Correct Answer: A
Rationale:
ACV considers wear and tear, adjusting replacement cost for depreciation to determine payout.
Question 5
Which document is required when submitting a property claim estimate?
A. Detailed damage report with photos and cost breakdown
B. Owner’s grocery receipts
C. Vehicle registration
D. Utility bill only
Correct Answer: A
Rationale:
A complete estimate report supports accurate claim processing and insurance review.
Question 6
Which of the following is considered hidden damage in property claims?
A. Structural issues behind walls, under floors, or in ceilings
B. Cracked window glass
C. Damaged garden plants
D. Peeling paint
Correct Answer: A
, Rationale:
Hidden damage is not immediately visible and requires careful inspection or specialized tools.
Question 7
Which of the following affects repair cost for a home claim?
A. Material type, labor cost, and local code requirements
B. Color of walls
C. Homeowner’s furniture style
D. Property owner’s insurance premium
Correct Answer: A
Rationale:
Repair costs depend on materials, labor rates, and compliance with building codes.
Question 8
Which of the following is true about water damage estimates?
A. Must include drying, mold remediation, and structural repair costs
B. Only accounts for visible stains
C. Ignores affected flooring
D. Only affects exterior walls
Correct Answer: A
Rationale:
Water damage often affects multiple layers, requiring complete remediation, not just surface fixes.
Question 9
Which of the following is true about roof damage estimation?
A. Include materials, labor, tear-off, disposal, and permits
B. Ignore old shingles
C. Only measure area in square feet
D. Count only the color of the roof
Correct Answer: A
Rationale:
Roof estimates must reflect full repair costs, including labor, materials, and local permitting.
Question 10
Which of the following is considered part of a structural repair estimate?
