1. MSB High Value Tool
Detailed Example
August 2006 1

2. High Value Home replacement Cost Tool
High Value Replacement Cost Tool Implementation
When to Use the High Value Tool
How to access Replacement cost Tool
General Information
Building Information
Wing Entry
Foundation/Basement
Superstructure/Framing
Using Help Definitions
Exterior Walls
Roof
Kitchen Packages
Kitchen/Appliance build-up
Heating & Cooling
Garage & Carport
Attached Structures
Material Summary
Custom Items
Calculation Page
Questions & Answers 1 1

3. High Value Replacement Cost Tool
August 20th 2006
Introduction of a tool to calculate the Replacement Cost on High Value Homes
General Estimator Information:
Replacement Cost Calculation continues to be accessed through Agent Headquarters
Paper copies of the Replacement Cost must still be maintained in the files
In August there will be a choice of calculations. High Value and Regular Value
The High Value Tool has the ability to capture the unique characteristics of a High Value Home
The High Value Replacement Cost will be calculated using materials of quality used in a High Value Home
ISSUE—The tool is as good as the information that is input. If the information used to calculate the Replacement Cost is the same as an inspection vendor the replacement cost results will be the same. If the information is not as detailed as the inspection vendor there will still be differences in the calculation results 2

4. 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
<= ,200
> ,000
State
Current Coverage A CW
$800,000 3

5. 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 1

6. How to access the Replacement Cost Tool
Log onto Agent HQ
Click on the Tools & Systems tab
Scroll down and click on MSB – Home Replacement Cost Estimator 5

7. Starting a High Value estimate
Click on the Valuation Type drop down and select the High Value Home – Standard Entry Method.
Then, click on the Create New Valuation button to begin the estimate. 6

8. General Information Items with asterisk must be filled in.
These items are no different from the regular value (Main Street) tool. 7

9. Building Information Required Items Year Built Construction Type
Number of Stories
Total Living Area
Perimeter and
Floor-To-Floor Height
Floor-To-Floor height will default to 100% 8 feet (standard)
Clicking on any item will open up
the definition box for that item.
Wings are meant for additions completed after
the original construction of the main dwelling 8

10. Building Information Year Built & Construction Type
If the year built is Pre-1930 then the
default construction type will be
vintage versus standard. This will
affect the replacement cost as well
as the defaults on later screens 9

11. Wing Entry
A wing is a part of the home that
was built after the initial
construction of the home
Construction type and number of stories are the same as they are on the building information screen
Verify for accuracy as these items will factor into the replacement cost of the wing
Year built information will not pre-fill from the building information screen however it will factor in the replacement cost of the wing. 10

12. Foundation/Basement
There are two options on how to complete a calculation:
Allow the system to default additional information based on Year built and Zip code OR
Go through every screen and input each all items based on insured information 11

13. Superstructure/Framing
The pre-filled information should not be
overwritten unless you have accurate
data to support the change. 12

14. Using Help Definitions
Clicking on any item will open up
the definition box for that item.
Use to verify that you are entering
the most accurate item. 13

15. Exterior Walls Framing will Pre-Fill Exterior Frame Walls will
Pre-fill but should be verified
for accuracy. 14

16. Roof – Part 1 Choose roof style and shape, both play critical
roles in establishing the
cost of roof replacement 15

17. Roofing Specialty Items
Roof – Part 2
Verify Roof Type
Roofing Specialty Items
Select if applicable. 16

18. Kitchen Packages A couple key items:
There are two ways to calculate the Replacement Cost of kitchen’s and bathrooms
The Kitchen-Complete considers all items in a kitchen.
The help will describe what is considered part of the custom
Built up kitchen allows user to choose each item in a kitchen to calculate the Replacement Cost
If the home has 1 kitchen the replacement cost should use either the custom or built up kitchen
Items can be added to the Complete kitchen if a key item is not already reflected in the definition 17

19. Kitchen/Appliance Build-Up.
Example: If you selected a custom
kitchen, that package does not include
a wet bar. Selecting wet bar will
include the cost into the calculation. 18

20. AC and Heating will pre-fill
Heating and Cooling
AC and Heating will pre-fill
Verify for accuracy 19

21. Garages & Carports This screen will not pre-fill
however it’s a important
feature for an accurate
replacement cost. 20

22. Attached Structures This screen will not pre-fill
however it’s a important
feature for an accurate
replacement cost.
Use for decks, porches, sunrooms 21

23. Material Summary
Review information
for accuracy 22

24. Custom Items
Custom items can be added by clicking on the Custom Items icon at any time.
A new window will open, click on Add Custom Item.
Fill in all information that has an * next to it, click OK. 23

25. Custom Items
Type the Description, Quantity and Total Cost (For example: Description – Custom Chandelier, Quantity – 1, Cost - $4,000).
Unit of Measure is used to determine how custom items will be counted (For example: Each).
Report Location shows where in the home the description refers to (For example: Ceiling Finish). 24

26. Remember to print or save
Calculation Page
The same reports are available for
the HV tool as the Regular Value
Standard Report
Detailed Report
Data Entry Report
Remember to print or save
a copy for your records 25

27. Questions and Answers
What if I enter data into the Regular Value home and realize that I needed to do a High Value estimate?
You will need to re-enter all your information as they are separate tools and the data is not shared between the rating engines
A future enhancement will eliminate the having to pick the high value or main street tool. More to come on this enhancement later this year
There was an inspection done on the home and the value is different than what the agent calculated?
There can be several reasons for this:
The inspection vendor may have had different detail than the agent
The agent may be using a different tool for calculating their Coverage A, verify that the estimate the agent is using is the “Travelers MSB” tool
Verify that the Cost Data are the same, this can be found on the “Report/Calculate” screen 26

28. Questions and Answers What should be included in “Total Living Area”?
This should only be areas of the home where there are finished living areas. One exception is for built in garages, this should be included in the square footage, the MSB tool will adjust behind the scenes. You will still enter the Built in Garage on the “Garages & Carport” screen as well.
Garages & Carports – should not be included in the square footage as this is not living area (with the exception of Built in Garage). unfinished basements and unfinished attics are not counted in this space. Square footage for garages and carports are captured separately on the “Garages & Carport” screen.
Multiple story home – all living areas should be included, not just ground level. MSB’s system takes into account the style of the home when calculating the TLA (total living area).
Finished basement, attached structures (ie: porches, decks, etc) should not be included as these items are capture in other areas. 27

29. Questions & Answers
There are many options for Kitchen’s and Bath’s, how do I know which one to use?
Descriptions for each item can be found by clicking on the option.
You should not use the “Basic” option for either.
The Coverage A amount shown on the “Standard Report” is different than the “Detail Report”.
The Coverage A amount shown on the “Standard Report” includes Mark-ups and Adjustments. The “Detail Report” just shows totals
How do I enter crown molding in the High Value tool?
There are two options to enter this detail
On the “Partition Walls” screen there is an option called “Mill work” where the tool will ask for a percentage
On the “Ceiling Finish” screen there are options for entering Linear feet if you have this level of detail 28