Insurance professionals have a new option for property valuationdata as RSMeans, a product line of Reed Construction Data (RCD) andan estimator of building construction costs for more than 60 years,launched its Means CostWorks Valuator software program. CostWorksValuator employs RSMeans cost data to prepare replacement costvaluations of residences for insurance underwriting.

Judy Jackson, president of NLC Insurance Companies, says theproperty/casualty insurer is pleased with what the product offers,and she is looking forward to it moving from a CD ROM product tobeing available on the Web. NLC is working with RCD on developing aWeb site for the product.

The CostWorks Valuator pro- duct is based on a firm backgroundof knowledge of the construction and insurance industries, shesays. It does a great job of customizing each valuation of thespecific features of the home we want to use.
The software offers multiple options for underwriters, includingvarious home foundations and HVAC options. It also produces aprofessional- looking valuation form, so youve got something toshow your agents or insureds when they question where you aregetting your prices, she says.

Coming up with solid valuations of homes is important in a hardinsurance market. Many insurers and customers have battled over thecorrect valuation of a house and whether it is underinsured.Property underwriting is not an exact science. Whats the value of ahome, anyway? Jackson asks. If a house has a big fire, the price tofix 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 ofwhat is the correct coverage has a lot of answers.

While not disclosing the price of the new product, Jackson saysCostWorks Valuator offers P&C insurers another underwritingoption. The price [of the software] is absolutely in the correctballpark, she says. [The product] minimizes subjectivity because itis quick and easy to use and does a good job of coming up with adecent valuation.

Means CostWorks Valuator is a Windows- based program that isdriven by RSMeans comprehensive residential component cost modelingsystem. The user can enter specific property information and selectpredetermined criteria in the electronic forms, and the programcalculates a property valuation in summary or detail format.Sophisticated cost models determine quality levels for eachstructure greatly reducing user subjectivity. Each valuation iscomponent built from RSMeans collection of unit and assembly costdata and priced by location for all U.S. ZIP Codes and Canadianpostal codes. Valuations are stored and managed in a familiarWindows file-and-folder system, offering numerous output options.In addition, direct Web access allows for data updates to keepcosts current.
Capturing the important de-tails that describe a property is key toaccurate valuations, says Roger Grant, vice president, productmanagement for Reed Construction Data. CostWorks Valuators simpleforms make it easy and straightforward to enter just theinformation needed to value a wide range of properties. RSMeans[takes] cost-engineered rules and contractor-tested data then usesthat information to generate reliable results for every locationacross the U.S. and Canada.

All components for a valuation are assembled from the data thatreflects the actual reconstruction process. Reed Construction DatasRSMeans product line has earned a reputation as a leading source ofconstruction cost information by providing comprehensive, accurate,and consistent products and services to the construction industryfor more than 60 years, says Curtis Allen, president of ReedConstruction Data. With the Means CostWorks Valuator, we areextending the information contractors, designers, and buildingowners rely on to meet the needs of appraisers and underwriters forcomprehensive, consistent, and accurate residential propertyvaluations through our CostWorks platform.

Product: Means CostWorks Valuator
Company: Reed Construction Data
Web site: www.reedconstructiondata.com