Insurance professionals have a new option for property valuation data as RSMeans, a product line of Reed Construction Data (RCD) and an estimator of building construction costs for more than 60 years, launched its Means CostWorks Valuator software program. CostWorks Valuator employs RSMeans cost data to prepare replacement cost valuations of residences for insurance underwriting.
Judy Jackson, president of NLC Insurance Companies, says the property/casualty insurer is pleased with what the product offers, and she is looking forward to it moving from a CD ROM product to being available on the Web. NLC is working with RCD on developing a Web site for the product.
The CostWorks Valuator pro- duct is based on a firm background of knowledge of the construction and insurance industries, she says. It does a great job of customizing each valuation of the specific features of the home we want to use.
The software offers multiple options for underwriters, including various home foundations and HVAC options. It also produces a professional- looking valuation form, so youve got something to show your agents or insureds when they question where you are getting your prices, she says.
Coming up with solid valuations of homes is important in a hard insurance market. Many insurers and customers have battled over the correct valuation of a house and whether it is underinsured. Property underwriting is not an exact science. Whats the value of a home, anyway? Jackson asks. If a house has a big fire, the price to fix that house is whatever you can get a contractor to do it for. That can depend on how busy the contractors are. The whole issue of what is the correct coverage has a lot of answers.
While not disclosing the price of the new product, Jackson says CostWorks Valuator offers P&C insurers another underwriting option. The price [of the software] is absolutely in the correct ballpark, she says. [The product] minimizes subjectivity because it is quick and easy to use and does a good job of coming up with a decent valuation.
Means CostWorks Valuator is a Windows- based program that is driven by RSMeans comprehensive residential component cost modeling system. The user can enter specific property information and select predetermined criteria in the electronic forms, and the program calculates a property valuation in summary or detail format. Sophisticated cost models determine quality levels for each structure greatly reducing user subjectivity. Each valuation is component built from RSMeans collection of unit and assembly cost data and priced by location for all U.S. ZIP Codes and Canadian postal codes. Valuations are stored and managed in a familiar Windows file-and-folder system, offering numerous output options. In addition, direct Web access allows for data updates to keep costs current.
Capturing the important de-tails that describe a property is key to accurate valuations, says Roger Grant, vice president, product management for Reed Construction Data. CostWorks Valuators simple forms make it easy and straightforward to enter just the information needed to value a wide range of properties. RSMeans [takes] cost-engineered rules and contractor-tested data then uses that information to generate reliable results for every location across the U.S. and Canada.
All components for a valuation are assembled from the data that reflects the actual reconstruction process. Reed Construction Datas RSMeans product line has earned a reputation as a leading source of construction cost information by providing comprehensive, accurate, and consistent products and services to the construction industry for more than 60 years, says Curtis Allen, president of Reed Construction Data. With the Means CostWorks Valuator, we are extending the information contractors, designers, and building owners rely on to meet the needs of appraisers and underwriters for comprehensive, consistent, and accurate residential property valuations through our CostWorks platform.
Product: Means CostWorks Valuator
Company: Reed Construction Data
Web site: www.reedconstructiondata.com
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