MSB Estimator Travelers Updated June 2007

MSB Main Street Home Tool Determining an accurate replacement cost is essential to guaranteeing premium adequacy and ensuring proper coverage for our customers! The MSB Main Street replacement cost calculation is a component based estimate which results in Reconstruction Cost, not Cost New. The tool uses “knowledge tables” to pre-fill information based on the zip code, total living area and year built of the home. Standarized “Preference Settings” set costs for things like Contractor’s Overhead & Profit and Architect’s Fees. Navigating through every screen is not required, only those screens where information does not pre-fill. Inspection vendors and Claims use the MSB website to do Replacement Cost Calculations.

Agent Specifics Agents continue to access the RCT tool via the Agent Headquarters. Paper copies of the Replacement Cost estimate must still be maintained in the agents’ file along with the application. When an agent creates an estimate, a policy number is matched to and placed on the estimate nightly – based on Agent Code, Year Built, Name, Address and Coverage A amount. Agents can only view their own estimates. If an agent creates an estimate and the policy number is applied, and then a vendor (inspection company) creates an estimate with the same policy number – the agent can still view/edit their estimate.

Agent HQ Click on the Tools & Systems tab Scroll down and click on MSB – Home Replacement Cost Estimator

Agent HQ Click on MSB Home Replacement Cost Estimator

Determining When to Use the High Value Tool Tool will be used by Agents, BC’s and Inspection Vendors The High Value Tool should be used if the home meets the following criteria: *If current coverage A is not available use Total Living area as a guide Yr built Total Living Area <=1940 5,200 >1940 6,000 State Current Coverage A CW => $800,000 3

Differences in the Regular Value & High Value Tools Increased levels of choice for features of the home Foundation considers a 9 ft basement rather than typical 8 ft Framing considers rough timbers, wood beams, steel and steel with beams Roofing considers more style and pitch adjustments Additional High Quality Wall finishes considered including French Doors, Walnut raised panel doors, Marble, Wall Molding, Ornate Oak Raised Panel, Hand painted wall paper Deluxe kitchen with double ovens, High End Above Range Microwave Ovens, Built In Specialty Appliances (Ice Makers, Wine Captains) Greater accuracy on larger homes System defaults to characteristics found in the higher value homes 4

MSB Screen Specifics Three options exist on this screen: When entering the MSB RCT tool your brought to the “Home” page. Three options exist on this screen: Create a “New Valuation” (new Estimate) Search for an estimate Edit, View or see the History of existing replacement cost estimates. 1 2 3

MSB Screen Specifics You can also see who created an estimate under the Assigned User heading. In this example, the agent completed this estimate.

Search for an Estimate The search criteria defaults to “Recent Activity”. There are many different options available for searching (i.e. Name, Address, etc.) The recommended search method is Property (Street) Address (# and name only).

Use “Back to Search” to go back to the Home page. Edit/View/History When the search is complete you may edit, view or look at the history of the estimate. Only “Edit” allows you to make changes to an estimate. Clicking History allows you to view a list of estimates completed on a home. Click the View hyperlink to view the actual estimate information. Use “Back to Search” to go back to the Home page.

Creating a New Estimate! On the home page, select Create New Valuation.

STEP 1: General Information Required fields are noted by an ( * ). Always assign the policy number for existing policies. If the policy number already exists in MSB, an edit prompts you to enter another number. To bypass this edit, enter a space or a letter at the end of the policy number. Click the Assign Policy Number hyperlink to enter the existing policy number. Note: Estimates not assigned a policy number will purge after 1 year.

STEP 1: General Information The Additional Information section is optional input, however, it is recommended that at minimum you enter the Property (Street) Address.

Navigation Information There is a navigation menu on the left side of each screen. As each screen is completed a check mark appears next to the screen name. Use the “Next Step” and “Previous Step” buttons to move from screen to screen. Fields with an * must be filled out on all screens. Each screen name represents a “step”. Only six screens automatically appear in the flow (numbered 1 through 6).

STEP 2: Building Information Once the required information on the General Information screen is entered, clicking “Next Step” brings you to the next sreen in the flow, the Building Information screen. Required fields are noted by a red asterisk (*). Enter: Year Built Style Number of Stories Total Living Area

Neat Feature! Definition Help Information about a field can be obtained by clicking on the name. A new window opens with detailed information explaining the field selected, for example clicking on “Style” provides a list of styles. Clicking on a specific style provides a definition.

STEP 2: Building Information The RCT system makes assumptions and pre-fills screens, based on the location of the home and year built. After the defaults have pre-filled, be sure to check them for accuracy. The “Construction Type” defaults to Standard, which calculates the replacement cost with modern materials. ALWAYS verify Construction Type on homes built prior to 1940. If the customer has an older home and would like the home replaced with “Pre 1940 or 1930”, it must be selected.

Older Homes The Travelers will always default to Standard Construction which calculates the replacement cost with modern materials. Agents may change the materials in the calculation if the customer wants exact replica materials used prior to 1930 or 1940. These materials are more expensive and take longer to locate. There are 3 interior items that need special attention for older homes: Floor covering other than carpet % interior walls with millwork or ornate paneling Heating & cooling

STEP 2: Building Information Caution! The “Style” defaults to Ranch. The correct home style must be selected from the list. Click on the “Style” hyperlink for descriptions and sketches of each type.

STEP 2: Building Information If a home has had a wing (an addition that projects from the main structure) added, this information can be added by selecting “Add Wing”. A column will open with input fields. Total Living Area should always be used if possible. Room Count (a.k.a. Unit Count) should only be used on an exception basis. Unit Cost method is not an acceptable means of calculating Replacement Cost. Unit count is not an accurate determinant of the total living area of a home as room sizes vary. We recommend the insured verify the square footage of their total living area to ensure an accurate replacement cost. Encourage the customer to verify the total living area prior to using this tool. Explain to the customer the importance of this factor in determining the replacement cost.

STEP 2: Building Information Special construction information such as unique wall heights, cathedral ceilings etc., can be captured by clicking on Optional Building Data at the bottom of the “Building” info screen. A new window opens and the following can be captured: Perimeter & Site Access (Terrain of site i.e. Hillside access) Ceiling & Roof (Do they have Cathedral Ceilings?) Wall Height, Framing & Foundation (Do they have 10 foot ceilings?)

STEP 3: Garages & Carports The next screen that appears in the flow is the Garages & Carports screen. The system does not have any pre-filled items on this screen. Enter the number of garages or carports. Be careful! The system is looking for “#s” of garages or carports, the selection includes the number of car slots. Click “Display Long List” for additional selections. Click “Display Long List” for additional selections.

STEP 4: Attached Structures The system does not have any pre-filled items for Attached Structures. Enter any decks, porches, closed porches, etc. Click “Display Long List” for additional selections.

STEP 5: Materials Summary The Materials Summary screen has all the materials entered or pre-filled for the estimate. Most of the information listed is pre-filled based on the MSB knowledge tables. Be sure to verify the information listed on the Material Summary Screen for accuracy.  

STEP 5: Materials Summary To change any of the information listed, click the bolded heading or click the screen name in the left navigation menu to navigate to the applicable screen. Once you’ve made the changes, return to the Material Summary screen to review. Clicking Reload Assumptions will clear all entries that were made, meaning – all items other than “assumptions” will be cleared.

We’ll review these screens on the following pages. STEP 5: Materials Summary Again, to make changes to the information listed on the Materials Summary screen click the bolded heading or click the screen name in the left navigation menu to navigate to the applicable screen. The following screens are not part of the ‘automatic’ screen flow: Exterior Walls Roof Exterior Features Kitchens & Baths Partition Walls Wall Finish Ceiling Finish Floor Finish Heating & Cooling Interior Features We’ll review these screens on the following pages.

This message remains until a value equaling 100% is provided. Exterior Walls Indicate the percentage for the applicable exterior wall category. A value totaling 100% is required before navigating to the “Next Step”. To view additional selections click on Display Long List. This message remains until a value equaling 100% is provided.

Use hyperlinks for definitions of the types! Roof A percentage entry for the applicable Roof type is required, A value totaling 100% must be input before navigation off of the screen can occur. Click on Display Long List for additional selections. Remember! Use hyperlinks for definitions of the types!

Exterior Features Enter the number of bay windows, picture windows, stained glass windows, etc.. Click on Display Long List for additional selections.

Kitchens & Baths Entry of at least one Kitchen and one Full or ¾ Bath is required before navigating off of the Kitchens and Baths screen. It is very important that the correct type of Kitchen(s) and Bath(s) is selected. REMEMBER! For descriptions of each item, click the item name and a new window opens with a detailed description for the item selected.

Partition Walls & Wall Finish The RCT system makes assumptions on information for Wall Partitions and Wall Finish based on construction type, location of home and year built. For example: In CT for a home built in 1938 the default for Partition Walls would be 100% plaster. A value totaling 100% must be shown, verify that the assumed items are correct for each risk. Click on Display Long List for additional selections.

Ceiling Finish The RCT system makes assumptions for Ceiling Finish based on construction type, location of home and year built. For example: In CT for a home built in 1938 the default for Ceiling Finish would be 100% plaster. A value totaling 100% must be input. Verify that the assumption is correct before going to the next step. Click on Display Long List for additional selections.

Floor Finish The RCT system makes assumptions for Floor Finish based on construction type, location of home and year built. For example: In CT for a home built in 1938 the default for Floor Finish would be, 17% carpet, 20% carpet over hardwood, 52% hardwood and 5% tile. The value must total 100%. Verify that the assumptions are correct. Click on Display Long List for additional selections.

Heating & Cooling The RCT system makes assumptions for Heating and Cooling based on construction type, location of home and year built. For example: In CT for a home built in 1938 the default for Heating & Cooling is 100% oil heat. The total for at least Heating must equal 100% before the moving on to the next step. Verify that the assumptions are correct. Click on Display Long List for additional selections.

Interior Features Enter any alarms, sprinkler system, fireplaces, etc. Click on Display Long List for additional selections. Notice that some of these items require a % and some look for a number. For example, the % for Central Alarm refers to the percentage of the total floor area served by the alarm.

STEP 6: Reports / Calculate Selecting “Next Step” on the Materials Summary screen provides the total Replacement Cost amount as shown under the category, Valuations Totals Summary. The default Report Type is Standard Report. The Report Type field contains drop down selections. Additional types include Detailed Report and Data Entry Report. Markups and Adjustments allows you to add things such as a depreciation percentage and it is rarely used.

Saving an Estimate Once you have completed the estimate, click on Finish/Close. A new window will open! To save the estimate, click Save Data Changes. There are two options for saved estimates: In Preparation – work is not complete, changes will be made to this estimate. Complete – work is complete on this estimate and any changes will be made to a copy of this estimate. To delete estimate, click on Discard Data Changes. All information will be deleted. After making selection click on Close Valuation.

IMPORTANT INFORMATION The MSB Main Street Replacement Cost Tool makes certain assumptions based on the on the zip code, total living area and year built of the home. The tool uses “knowledge tables” to pre-fill information about the exterior wall material, roof material, number & style of kitchens, and number & style of bathrooms. It does not make assumptions for “Custom Items” such as custom designed crown molding. If any custom items exist, specific actions are necessary as noted on the next two screens.

Custom Items Custom items can be added by clicking on the Custom Items icon at any time (This icon: ). A new window, click “Add Custom Item”

Custom Items Required fields are noted by a red asterisk (*). Type the Description, Quantity and Unit Costs associated with the custom item (For example: Description – Custom Chandelier Quantity – 1 Material Cost - $4,000. Unit of Measure is used to determine how custom items will be counted (For example: Each). The Report Location allows you to specify under which category in the report you want the custom item to appear. Example, for a Custom Chandelier, you could select “Ceiling Finish”. Click Add to add the item and Close when you’ve added all of the custom items for the home.

Comments Comments about the risk can be added from any screen, click on the Comments icon . A New window will open. Add comments and click OK.

Reports Detailed information on the estimate can be found by selecting one of four reports: Standard - Contains the general information, comments, cost summary, building information, and materials/components summary. Detailed - Contains the general information and a cost breakdown by cost type (Framing, Walls, Roof, etc.). Attachments - Contains the photo attachments (if any) for the valuation. Data Entry - Contains all the data entered for the valuation, except for the attachments.  Included would be; general information, comments, building data (including length/width or room count data if entered), special conditions, materials/components summary, custom items, and cost markups and adjustments. Select a report from the drop down box. You can print a hard copy, preview the report or download it.

Reports – Standard Report Here’s a preview of the Standard Report. There are 4 main categories: General Information – Location of home and policy# Results – Calculation of Replacement Cost Building Descriptions – Summary of property information Materials – Summary of exterior and interior items used in calculation.

Reports – Detailed Reports Here’s a preview of the Detailed Report. There are only two categories in this report, General Information and Cost Details.

Reports – Data Entry Reports This is a preview of the Data Entry Report which has six main categories: General Information Additional Information Building Optional Building Data Materials Markups and Adjustments

Summary The MSB Main Street replacement cost calculation is a component based estimate which results in Reconstruction Cost, not Cost New. The tool uses “knowledge tables” to pre-fill information based on the zip code, total living area and year built of the home. Standarized “Preference Settings” set costs for things like Contractor’s Overhead & Profit and Architect’s Fees. “Hyperlinks” provide more detailed definitions/descriptions of items. Navigating through every screen is not required, only those screens where information does not pre-fill.