Estimating and Loss Documentation
What this domain tests
Converting a loss into a line-item estimate and a claim file that survives appraisal, examination under oath, or litigation.
Building the estimate
- Measure rather than guess: room dimensions, roof squares and pitch, siding elevations, linear feet of cabinets and trim.
- Use a line-item format with quantity, unit, unit cost, labor, material, equipment, and overhead and profit. Overhead and profit is generally justified when three or more trades are required or a general contractor is necessary.
- Add sales tax, permits, debris removal, code-required items, and temporary repairs; note labor minimums.
- Contents schedule: item, quantity, age, condition, original cost, replacement cost, and source such as a receipt, photo, or model number.
- File discipline: date-stamped photographs, moisture readings, signed inventory, correspondence log, expert reports, proof of loss, and a summary tying every dollar to a document.
Worked example
A kitchen fire damages cabinets, counters, flooring, and paint. The estimate lists demolition, cabinet replacement by linear feet, countertop by square feet, flooring, paint, and appliance cleaning, plus overhead and profit because four trades are required. Contents are inventoried separately with age and replacement cost. Each line is measurable and traceable; a lump-sum "kitchen, $40,000" cannot be defended in appraisal.
Traps that cost marks
- Quantities larger than the measurements support.
- Mixing retail and contractor pricing in one estimate.
- Omitting tax, permits, and code items.
- Photographing after debris removal.
- Withholding depreciation without a documented basis.