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RCT ESTIMATOR TRAINING

February 2005

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MSB RCT Updates

• MSB has updated their Residential Component Tool (RCT) to better Serve their customers. New screen layouts are user friendly allowing you to easily move from one screen to another.

• Navigation through all screens is required to ensure that the proper information regarding a home are captured. This will ensure that a home is insured to the proper value.

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Overview of Changes to MSB’s Estimator ToolEffective February 18, 2005

• New screen flow provides easier navigation.• Quick Quote has been eliminated and is no longer an option with the

updated Replacement Cost estimator.• Navigation through all screens is required for verification of defaults.• Exterior Walls and Roofs are required entry fields. • Kitchens and Baths are required entry fields. You must select at least

one of each.• Debris Removal is set to 5%

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General Estimator Information

• The current Marshall Swift & Boeckh (MSB) product – Residential Component Technology (RCT) is being updated on February 18, 2005.

• Replacement Cost Calculation continues to be accessed through Agent Communications on the First Trenton Website .

• The First Trenton policy number will be placed on the Replacement cost estimate based on the Name, Address, and Zip Code.

• If an estimate does not have a policy number it will eventually purge.

• Unit Cost method is no longer acceptable unless part of the RCT (Marshall Swift & Boeckh product) tool.

• Paper copies of the Replacement Cost must still be submitted to Underwriting.

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Calculation Results

• RCT Calculation is a component based estimate which results in Reconstruction Cost, not Cost New.

• MSB’s tool will always calculate with standard construction type unless the agent wants to calculate with ‘Pre-1940/Pre-1930 materials’.

• Agents must change the materials if the customer would like the home replaced with ‘Pre-1940/Pre-1930 construction materials’.

• Agents can change materials used in calculation.

• Travelers tool will add Debris *Removal at 5%, however it will not add *Architect Fees, *Overhead and *Profit. Agents may add these fees if they believe necessary

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Additional Information

• Agents will only be able to view their own estimates.

• There is no change to the claim settlement practices based on the replacement cost tool. Policy number is being matched nightly – based on agent code, year built, Name, Address and coverage A amount.

• Inspection vendors and Claims will use the MSB website to do Replacement Cost Calculations. All Replacement Cost data will be stored on the RCT website.

• Estimates created on the previous MSB tool will be editable and viewable from the updated tool.

• When an agent creates an estimate with the policy number before a vendor creates an estimate with the same policy number, it will be viewable/editable by the agent.

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MSB SCREENS

The link on Agent Communications connects to the MSB website. Agents can do a new valuation or search for an existing valuation. The first time that a new user logs in, you are asked to change your password.

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MSB SCREENS

Users need to change your password every 90 days. Make sure that your password is easy to remember or that you write it down and secure it in a safe place that is accessible “just in case.”

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MSB Screens

After logging-in you, will link to the MSB website where new valuations can be created or existing valuations reviewed.

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Search for an Estimate

• Searches are available on the home screen.• There are many different options for searching.

– Remember, estimates with no policy numbers will purge.

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Search Results

When the search is completed you may edit, view or look at the history of an estimate. Edit allows you to change an estimate.

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Viewing a Profile

• You can now see who created an estimate on the home screen. It is listed under Assigned User.

• When creating a new risk, your user ID that you logged on with will display.

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History

History will allow you to see any estimates that have been completed ona home. You can view these from the history screen.

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Creating a New Valuation

From the home menu select New Valuation.

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Creating a Valuation

• Fill in all required fields as noted by an * as well as Name, Address and Zip Code.– Reminder, the policy number will not get assigned to the risk without

the Name, Address and Zip Code.

• Click on the Next Step, this can be found at the bottom or top of each screen.

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General Information

• There is a navigation bar on the left side of each screen.• As each screen is completed a check mark will appear next to the screen name.• Navigation through all screens is required for verification of derived

information. • Fields with an * must be filled out on all screens.

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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.

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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).

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General Information

• Information about a field can be obtained by clicking on the hyperlink, which is the name of the field.

• A new window will open with information pertaining to explaining the field selected.

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Creating a Quote• The RCT system has knowledge tables, which provide information

used to pre-fill screens based on the location of the home and year built.

• After the defaults have pre-filled, be sure to check them for accuracy.• Construction Type defaults to Standard, be sure to verify Construction

Type on homes built prior to 1940. For Vintage reconstruction select Pre-1930/Pre-1940.

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General Information

• To view additional selections click on Display Long List• You will be required to enter a value of at least 100% on the following

screens before you can navigate off of them:– Exterior Walls– Roof

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BuildingRoom Count

• Room Count should only be used on an exception basis and should not be submitted with an application.

• Click on Calculate Using Room Count. • The insured will need to verify the total living area prior to issue. • If a policy has Additional Replacement Cost Coverage this method is not

acceptable.

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BuildingSpecial ConstructionSpecial construction can be captured by clicking on Optional Building Data at the bottom of the Building Screen. A new window will open and the

following can be captured:– Perimeter & Site Access– Ceiling & Roof– Wall Height, Framing & Foundation

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Building

If a home has a wing (an addition that projects from the mainstructure) added to it, you can add this information by selecting Add Wing.Another column will open with field to be filled in.

Wings

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Exterior Walls

• Exterior Wall construction is required.• The total must be at least 100% before you can navigation off of the

screen can occur. • Click on Display Long List for additional exterior wall selections.

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Roof

• Roof construction is required.• The total must be at least 100% before navigation off of the screen can

occur. • Click on Display Long List for additional selections.

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Attached Structures

• The system does not have any pre-filled items on this screen.• Enter any decks, porches, closed porches, etc.. • Click on Display Long List for additional selections.

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Detached Structures

• The system does not have any pre-filled items on this screen.• Enter any sheds, swimming pools, hot tubs, etc.. • Click on Display Long List for additional selections.

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Exterior Features

• The system does not have any pre-filled items on this screen.• Enter any bay windows, picture windows, stained glass windows, etc..• Click on Display Long List for additional selections.

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Partition Walls• The RCT system has knowledge tables, which provide information for

Partitions 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)

• Verify that they are correct for each risk.• Click on Display Long List for additional selections.

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Wall Finish

• The RCT system has knowledge tables, which provide information for 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 Wall Finish would be, 83% paint, 3% sheet paneling and 14% vinyl wallpaper)

• Verify that they are correct for each risk.• Click on Display Long List for additional selections.

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Ceiling Finish

• The RCT system has knowledge tables, which provide information 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)

• Verify that they are correct for each risk.• Click on Display Long List for additional selections.

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Floor Finish

• The RCT system has knowledge tables, which provide information 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)

• Verify that they are correct for each risk.• Click on Display Long List for additional selections.

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Heating & Cooling

• The RCT system has knowledge tables, which provide information 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)

• Verify that they are correct for each risk.• Click on Display Long List for additional selections.

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Interior Features

• The system does not have any pre-filled items on this screen.• Enter any alarms, sprinkler system, fireplaces, etc. • Click on Display Long List for additional selections.

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Garage & Carport

• The system does not have any pre-filled items on this screen.• Enter garages or carports.• Click on Display Long List for additional selections.

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Kitchens & Baths

• You will be required to enter at least one Kitchen and one Full or ¾ Bath before navigating off of the Kitchens and Baths screen.

• It is very important that the correct Kitchen(s) and Bath(s) are selected. For descriptions of each item, click on the item name and a new window will open with a description for the item.

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Materials Summary

• The Materials Summary screen has all the materials entered for an estimate.

• To change any item, you can click on the category heading above the material to move to that screen or use the navigation bar on the left.

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Reports / Calculate

The total Replacement Cost amount is shown under the category,Valuations Totals Summary.

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Markups & Adjustments

• There are times when you may want to include or add building costs in your estimate. To make these adjustments, click Markups & Adjustments.

• A new window will open, if changes are made they will automatically re-calculate and update the Replacement Cost amount.

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Markups & Adjustments

Below is a description of the Markups & Adjustment Available:

• Architects Fees – Default is No. If you select YES, and do not enter a % the system will default to the standard MSB architect fees. Select YES, and enter a % if you want to set your own architects fees.

• General Contractor’s Overhead – Default is NO. If you select YES, and do not enter a % the system will default to 10% (standard MSB Overhead). Select YES, and enter a % if you want to set your own general contractor’s overhead percentage.

• General Contractor’s Profit – Default is No. If you select YES, and do not enter a % the system will default to 10% (standard MSB profit). Select YES, and enter a % if you want to set your own general contractor’s profit percentage.

• Debris Removal – Default is YES. The system will default to 5%. If you wish to change the Debris Removal, enter a % or click on NO to remove it.

• Adjustment Factor – Enter an Adjustment Factor (%) if you want to increase all cost in the report. For example, to increase all costs 4.5%, enter 4.5.

• Depreciation Factor – Enter a depreciation percentage if you want to include depreciation in the report. This percentage applies to the home and attached structures. For example, to depreciate costs 12.5%, enter 12.5

• Wage – The system will default to Reconstruction which is Travelers acceptable wage.

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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.

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Important Information Regarding Older Homes

• First Trenton 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.

• It is very important that the agent counsel customers on Replacement Cost.

• There are 3 interior items that need to be reviewed:– Floor covering other than carpet– % interior walls with millwork or ornate paneling– Heating & cooling

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Homes over 3400 sq. feet

• If the home is over 3400 sq. you must review the following:– Floor covering other than carpet– % Interior Walls with Millwork or Ornate Paneling– Heating & Cooling– You must also verify information on the Exterior Features screen,

such as Atrium or Bay windows.

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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.

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Reports

Select a report from the drop down box. You can print a hard copy,preview the report or download it.

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Reports – Standard Report

• Preview of the Standard Report. Print a copy of this report and file the 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– Be sure to Print report and save in your files.

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Reports - Detailed Report

Preview of the Detailed Report. There are only two categories in this report,General Information and Cost Details.

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Reports – Data Entry Report

Preview of the Data Entry Report. There are six main categories:• General Information• Additional Information• Building• Optional Building Data• Materials• Markups and Adjustments

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Saving Estimate

• Once you have completed the estimate, click on Finish/Close. A new window will• open.• To save 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.