Xactimate Level 2 Certification Exam Study Guide – CST 220 Property Estimating – Sketch Tools, Line Items & Depreciation (100 Questions)

This document contains 100 exam-style questions with verified answers designed to help candidates prepare for the Xactimate Level 2 Certification examination. The material focuses on core competencies required for professional property damage estimating, including project setup, estimate creation, sketching tools, line item entry, depreciation calculations, and insurance coverage documentation. The questions are presented in a structured study format to help estimators, insurance adjusters, contractors, and restoration professionals reinforce the technical skills commonly tested in Xactimate certification exams. The study guide begins with project creation and estimate setup procedures within the Xactimate software environment. Creating a new estimate typically involves selecting New Project from the dashboard, confirming that the estimate type is selected, assigning a project name, choosing the correct estimating profile, selecting the appropriate price list, and identifying the tax jurisdiction before completing the setup. These steps ensure that estimates use the correct regional pricing database and insurance profile settings. Another section explains the Claim Information window, which stores key information about the insurance claim and insured party. This section allows users to record contact details, loss location, policy information, and important claim-related dates. Information related to insured individuals, claim parameters, and documentation statements can also be entered in this section, making it one of the most important areas of the estimate setup process. The document also discusses project profiles used in estimating workflows, such as carrier profiles and contractor profiles. These profiles determine what information and features are available within the estimate. For example, the Coverage/Loss tab is not available when using a contractor profile, since contractors typically focus on repair cost estimates rather than insurance coverage analysis. If a project must be converted from a contractor profile to a carrier profile, the estimate can be duplicated and assigned a different profile to maintain proper data structure. Another important concept covered is price list management. Xactimate price lists contain the labor, material, and equipment pricing used to calculate repair estimates. These price lists are typically updated monthly to reflect regional market conditions and changes in construction costs. Selecting the correct price list ensures that estimates accurately reflect current pricing for the geographic area where the loss occurred. The study guide also examines estimate item entry and quick entry fields, which are used to add line items to an estimate. Line items include information such as unit of measurement, item activity, and quantity calculations. The unit field identifies measurement units such as square feet (SF), each (EA), or units (UN), while the activity field determines the type of work performed on the item. Examples of activity codes include: + Replace – Remove & Remove and replace I Install only R Detach and reset M Material only These activity codes allow estimators to specify exactly how a building component will be repaired or replaced within the estimate. Another section reviews sketching tools used to create diagrams of structures. The Sketch window typically consists of four primary sections: Tools panel Search panel Sketch workspace Item panel These tools allow users to draw rooms, walls, doors, windows, roofs, and other structural components. The Plan View is the default view displayed when entering the sketch interface, while zoom tools allow users to adjust the view of the sketch to better examine details. For example, Zoom to Selection allows users to zoom in on specific measurements or features in the diagram. The guide also explains how to modify room and structural measurements in sketches. Measurement values must appear blue before they can be edited, allowing the estimator to click the measurement and manually enter a new value. Users can also create new rooms by holding down the CTRL key while dragging a wall handle, which automatically generates a new room boundary in the sketch. Another section explores roof modeling and roof design tools used in Xactimate estimates. Roof structures are defined by elements such as rafters, ridges, slopes, and spans. The ridge represents the horizontal intersection where two roof planes meet, while rafters are structural members that support the roof sheathing. Roof slope describes the angle of the roof and is expressed as a ratio of rise to run. Roof modeling tools allow estimators to accurately calculate roofing materials, waste factors, and repair costs. The study guide also discusses line item quantity adjustments and waste calculations. Certain construction materials such as carpet, vinyl sheet goods, and roofing shingles do not automatically include waste in the item cost calculation. In these cases, estimators must manually apply a waste factor using a formula such as: Quantity × 1.15 This calculation adds 15 percent material waste to account for cutting, trimming, and installation losses. Another important topic reviewed in the document is depreciation and insurance claim settlement calculations. Depreciation represents the reduction in value of property due to age, wear, and obsolescence. Two major types of depreciation are used in insurance claims: Recoverable depreciation, which the policyholder can recover after completing repairs. Non-recoverable depreciation, which is permanently deducted from the claim payment. Understanding these depreciation types is essential for accurately estimating claim payments and final settlement values. The study guide also reviews insurance coverage categories commonly referenced in property insurance policies, including: Coverage A – Dwelling: Covers damage to the primary residential structure. Coverage B – Other Structures: Covers detached structures such as garages, fences, or sheds. Coverage C – Personal Property: Covers personal belongings and household contents. Coverage D – Additional Living Expenses (ALE): Covers temporary living costs when the home is uninhabitable after a loss. These coverage categories help determine the limits and payment eligibility for insurance claims related to property damage. Another section examines estimate completion and quality inspection procedures. When an estimate is marked Completed, Xactimate performs an inspection process that checks for common estimating errors such as missing information or incomplete documentation. If modifications are required after completion, the estimate status must be changed back to In Progress before edits can be made. The document also reviews keyboard shortcuts and efficiency tools used during estimate creation. Examples include: Ctrl + Z for undoing previous actions Tab to move between quick entry fields Enter to move to the next line item Esc to remove an item from the cursor These shortcuts allow estimators to work more efficiently while building estimates. The concepts presented in this study guide align with widely used training resources such as Xactimate Training Workbook by Verisk and Xactware, which is a primary reference used in insurance adjusting and property restoration training programs. This document may be particularly useful for students enrolled in courses such as: CST 220 – Property Damage Estimating with Xactimate INS 310 – Property Insurance Claims and Adjusting Construction Estimating Software Training Programs Insurance Adjuster Certification Courses Xactimate Level 1 and Level 2 Certification Preparation Programs It is relevant for learners and professionals including: Insurance adjusters preparing for Xactimate Level 2 certification Restoration contractors creating property damage repair estimates Construction estimators learning digital estimating software Property claims professionals working in insurance loss assessment Students studying property restoration and insurance estimating systems Because the material is structured as exam-style questions covering Xactimate estimate creation, sketch modeling tools, line item calculations, depreciation methods, and insurance coverage categories, it serves as a comprehensive resource for Xactimate Level 2 certification exam preparation, property damage estimating training, and insurance claims management education. 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