Stillwater Insurance Estimating Guidelines

Transcription

1 Stillwater Insurance Estimating Guidelines The intent and purpose of these guidelines is to set forth a standard and generalized process for vendor partners, by outlining specific estimating and administrative principles. While these are a general guideline to be followed on all field assignments, each claim must be reviewed on a case by case basis with the authority of a Stillwater Insurance Representative. Administrative: 1. Acknowledgment of Assignments: Same Day 2. Policyholder Contact: 24 hours 3. Inspection- Uninhabitable: Same Day Water / Fire: 24 hours All Others: 3 days Hour Reserve Status Report 5. Immediate Large Loss Reserve Notification from the loss site for all loss reserves over $25, Signed and Dated Non Waiver s should be obtained on all Non Weather Water, Fire, Vandalism, Malicious Mischief and theft losses. If the policyholder refuses to sign the Non Waiver, an immediate call should be made to the desk adjuster to notify. 7. Final Estimate: 10 days 8. First Report: 10 days 9. Subsequent Reports: 20 days 10. Ladder Assist: Pre-Approval Required 11. Expert / Engineer: Pre- Approval Required 12. Mileage Authority: 75 Miles Included Pre-Approval Required for Additional Mileage. 13. Time and Expense: Pre-Approval Required 14. The field adjuster should advise the desk adjuster of separate occurrences. 15. Do Not Recommend Contractors or Experts to the Policyholder without prior approval. 16. Field adjusters should not make or relay any coverage decisions or issues without prior approval. 17. Adjusters should Not write estimates for obvious coverage exclusions. They should document, photograph and scope the loss only. 18. Field Adjuster has No authority to obtain an Agreed Cost for repairs without prior approval. 19. Do not Release Copies of Estimates or Expert Reports without prior approval. 20. Do not re-inspect losses without prior approval. Field Adjuster should notify the desk adjuster if any additional communications are received after the initial file handling is completed. 21. An Insured-To-Value (ITV) evaluation should be obtained on ALL losses. Xactimate Parameter Settings: 1. Utilize Xactimate Estimating Software for all Claims. 2. Utilize the Vendor s Individual Logo and header. 3. Utilize the Stillwater Insurance Model opening statement.

2 NOTICE: This is a repair estimate only. The insurance policy may contain provisions that will reduce any payments that might be made. This is not an authorization to repair. Authorization to repair or guarantee of payment must come from the owner of the property. No adjuster or appraiser has the authority to authorize repair or guarantee payment. The insurer assumes no responsibility for the quality of repairs that might be made. 4. Utilize the Vendor s estimator name in the Estimator Field. 5. Utilize the Stillwater Adjuster s name in the Adjuster s Field. 6. Use the current quarterly price list for the loss location. 7. Set estimate parameters to Restoration / Service / Remodel with the exception of total losses which should be set to New Construction. 8. Apply Tax based on your local tax jurisdiction in your operating territory. Tax rates vary by state, county and city. In addition to varying tax rates, there are also areas in which tax is only applicable on material or labor or even cases where it may not be applicable on cleaning. Additionally, various entities may be tax exempt such as schools, businesses and government organizations. 9. Apply Tax after Overhead and Profit. 10. Overhead and Profit should be 10% and 10% = 20%, not 21%. Leave cumulative O&P unchecked on settings. 11. Base Service Charges set to broken out 12. If applicable, review each Base Service Charge and determine if it is applicable and required for the loss to facilitate repairs, ie: will that trade be utilized. 13. If Applicable, Review each Minimum Labor Charge and determine if it is applicable and required for the loss to facilitate repairs, ie: will that minimum labor be utilized or is it encompassed by another worker. 14. Final Report Version should be Final Draft With or Without Depreciation. 15. Utilize the Xactimate Photo Report, apply 2 Photos Per page with comments and narrative. 16. Set Maximum Depreciation Applied to 75%. 17. Enter Policy Limits and Deductibles- across all coverages 18. Subtract All Openings Greater than 32sf from the estimate. Ignore All Openings less than 32sf. For example: Doors, windows, partial walls. 19. Estimate Format should be written in one of three ways: 1. Order of Construction 2. From top to Bottom: ceiling>walls>floors (exterior: roof>siding>ground) 3. From bottom to top: floors>walls>ceilings (exterior: ground>siding>roof) 20. Estimates need to show separate totals for each exposure such as Building, Outdoor Equipment, Contents, Dwelling and / or Other Structures. 21. Create a General Category to accommodate items that apply to the whole job. Ie.Temporary Electric, Portable Toilet, Engineering, Permits, Dumpster etc. 22. Estimate closets as separate rooms but include them as sub rooms to avoid duplication. 23. All Estimates should be renumbered during the final print phase to assure proper and sequential line item numbering.

3 24. Xactimate Waste Expert should be turned off and waste factors should be added on a line item basis % waste factor to be used on Flooring and Sheet goods. Diagrams: 1. All estimates should be accompanied by a diagram for all affected areas, whether damaged or not. 2. Footprint and elevation Diagrams are required for all large or total losses. 3. All Roof Inspections require a full roof diagram and measurements if damages are found. 4. Provide a legend (arrow) on the diagram to show the direction of the storm and / or location of the loss etc 5. All Rooms must be connected as a single diagram and show connecting areas / doorways. 6. Enter and show all doors, windows and openings. Remove All Openings Greater than 32sf / Ignore All Openings less than 32sf. 7. Measurements must be within 3 of actual dimensions. 8. Exterior estimates must contain Diagrams of each elevation. Enter all openings and show the entire elevation. Lump Sum / Sub Bids: 1. No Lump Sum or Single Line Item bids / estimates will be accepted. 2. All subcontractor bids must be evaluated and verified by comparing unit cost pricing in Xactimate. If not possible, Lump Sum or Sub Bids should Not be included in an Xactimate estimate total or included in the field adjuster billing total. 3. When needed an Open Line item with a $0.00 amount should be entered. A line item note should be added to explain that there is a forth coming sub bid. Demo and Debris Removal: 1. For Large losses and Total Losses, the estimate should be written with +Replace pricing only and all demolition and removal costs should be calculated on a time and material basis, hourly or separated as a sub bid. 2. Roof Estimate line items usually include tear off, haul and dispose in the individual line item (ARMV), therefore a separate dumpster should not be added for roofing only estimates. 3. (ARMVN) Roof replacement without haul and dispose Line items should be considered for large roofs. A separate dumpster should be added with the usage of this line item. See dumpster guide attached. 4. Lump Sum Demo and Debris Removal are not acceptable and must be broken out and explained or have a cost breakdown attached. Contractor s sometime use their own dumpsters therefore haul off and disposal invoices should be considered and reviewed when calculating this expense.

4 Itel: 1. Use AV Average grade for all losses. If the unit cost is determined to be above or below AV grade, a line item note must be added to explain the cost variance and how it was determined. 2. The use of ITEL for pricing evaluation should be used when the replacement square footage exceeds 300 square feet (laminate, engineered, tile, carpet, vinyl). Photographs: 1. Address verification photograph on all losses 2. Front, Rear and Side elevation photos of all risks 3. Photos of Outbuilding s, fences and other structures on all losses 4. Photos should be in order consistent with the damage estimate 5. Roof photos must show overview of the roof, overview of test squares, closeup photos of damage, collateral photos of vents, ridges, gutters flashing, pitch gauge, roof layers, HVAC, window trim and screens 6. Interior photos must show overview of damages of the room and affected area, as well as closeup photos of the damage. 7. Photos should include adjacent rooms and areas to show additional damage or the lack of. 8. Photos above and below the area are required. This includes attic and crawlspace photos for ceiling and floor water losses. 9. Photos should be submitted on an Xactimate Photo Report with 2 photos per page, include comments and narrative on the photos. 10. Photo Narratives should explain the photograph and view. Overhead and Profit: Overhead and Profit is acceptable on losses where the use of a General Contractor is likely needed to facilitate the repairs and coordinate the activities of sub-contractors. This additional cost should be calculated as 10% and 10% for a total of 20% before the application of taxes. (uncheck cumulative O&P in Xactimate settings) If local or regional market conditions suggest deviated O&P costs, a line item note should be added to explain the deviation and basis for the increased cost. This is a reasonable and fair expense that should be included on our settlements. It should be recognized that many contractors in the market place utilize pricing systems that include O&P in their unit costs such as roofing contractors, siding companies, carpet installers, cleaning and mitigation companies, fencing, pool companies and mechanical contractors. Therefore, individual trades and repair costs must be reviewed on a case by case basis to determine if the increased cost is reasonable and fair. Sub-Contractor Bids and Lump Sums usually contain taxes as well as O&P. A breakdown of these items is required to determine if these costs are inclusive and to avoid duplication. Depreciation:

5 Depreciation and the correct application should be reviewed and considered on each and every loss. The individual Insurance policy and endorsements should be considered, as well as local state and federal mandates, when considering the correct application of depreciation. A determination should be made as to whether the depreciation will be deemed Recoverable or Non Recoverable and the correct Xactimate settings should be utilized. Determining the Actual Cash Value or (ACV) should be determined by determining the age and condition of the item. A line item note should be included in the estimate to explain the calculation method used, ie: 40% depreciation is applied based on 4 year old paint with a 10 year useful life. Minimum Charges: Including Base Service Charges, Minimum Charges, and Minimum Labor Charges- These trade minimums are utilized differently in each version of Xactimate. They represent the overall general flat fee allocation to compensate a worker for a small job that falls below the line item pricing encompassed in the estimate. When reviewing the correct application of these minimums, the entire estimate should be reviewed as a whole. The actual worker or tradesman that will complete the task should be considered and a determination should be made, case by case, to assure the correct application of these minimum costs. Duplication of minimums applying to the same trade should be avoided, ie: Acoustic ceiling minimum with Drywall line items, finish carpenter trim minimum with Hardwood floor installers, plumbing labor minimum to D/R Fridge by hardwood floor installer or HVAC minimum labor charge for roof vent. Personal Property Content Losses: 1. Xactimate should not be used to enter large Personal Property Content losses. 2. A small amount of Personal Property damaged can be entered as miscellaneous items, with line item notes explaining the item. Personal Property items should be calculated as separate coverage under Contents. 3. Immediate contact to the desk adjuster must be made to advise of Personal property loss exposures and reserve recommendations. 4. Personal property Inventory Worksheets should be delivered and explained to the policyholders. 5. Photographs and documentation of personal property damage should be obtained on all losses, if applicable. Emergency Services: 1. Emergency Services that have already been incurred and have a separate sub bid or invoice, should Not be added to the Xactimate line item estimate. An Open Line item with a $0 amount should be entered, a line item note should be added to explain that there is an attached sub bid or lump sum total.

6 2. Emergency Service costs being estimated by the adjuster should be completed in Xactimate, by entering individual line item prices. Tree Removal: 1. Tree Removal must be entered into Xactimate with two separate linesa. Tree Removal- The cost associated with the removal of the tree from a covered structure and placed on the ground. b. Tree Debris Removal- The cost associated with the removal of tree debris off the residence premises after it has been removed from the covered structure and placed onto the ground. Usual coverage limit is $500 per tree, not to exceed $1,000 total maximum. 2. Tree and Tree Debris Removal are usually subject to special limits and limitations. These limits should be discussed with the desk adjuster when applicable. Cleaning and Remediation: Adjusters should not prepare Cleaning and/or Mitigation estimates. These estimates should be prepared by an approved industry certified vendor and then reviewed and approved by the adjuster. 1. Advise adjuster immediately if mitigation or remediation is required and not being completed. 2. Photograph and document all restoration or mitigation equipment onsite. The type and Quantity of equipment should be photographed and documented. It should also be noted if the equipment is operational, correctly placed and installed correctly. 3. Document the date and start time of the drying or remediation process. 4. Document power sources being used for the equipment. 5. Photograph and document specialized equipment and procedures being utilized, ie: inject drying, Containment barriers 6. Document Excessive or Insufficient mitigation processes. 7. While adjusters should not complete stand-alone mitigation estimates, a separate Line Item note should be added for any mitigation or remediation equipment that is added to the estimate. This may be required for a policyholder that has completed their own water extraction or placed a fan themselves. 8. Overhead and Profit is normally Not included on Stand Alone Cleaning and mitigation estimates. These operations are normally completed by a stand-alone single trade vendor. 9. If a General Contractor is engaged in the claim process and will be completing the actual cleaning and remediation work themselves, O&P should be considered. A thorough and complete analysis of the General Contractors estimate should be completed to verify that O&P is not already included. 10. Cleaning and mitigation line items written into the field adjusters estimate, may incur O&P if completed by a separate cleaning vendor who will be mobilized to complete the operations. 11. A separate line item for Supervisor Labor should Not be added as a separate line item cost. These costs are normally built into the contractors costs and estimate line item pricing. If an

7 actual onsite supervisor is required, a line item note should be added. Documentation should be requested regarding this expense. ie: employee name, time sheets, etc. 12. The field adjuster should avoid mitigation line items such as Apply Antimicrobial. These line items and operations should be completed and estimated by a mitigation vendor in a separate mitigation estimate. 13. Post Construction and Pre Construction cleanup are generally Not required and should not be included as separate line items. Xactimate includes an average amount of cleanup in each Remove and Replace line item cost therefore additionally cleanup labor is usually not required. If additional pre or post construction cleanup is required, a separate line item note should be added to explain the additional cost. Flooring: The proper identification of flooring is a key requirement in properly estimating floor repairs and replacement. There are a wide variety of flooring types, quality, thickness, grade and application. Additional consideration should be taken into account for specialized repairs, alternative repair techniques and peripheral items associated with flooring repairs. Flooring experts, vendors and manufacturing consultation are all acceptable means of flooring identification if required but should only be considered with the direct and prior authorization of the desk adjuster. 1. Care should be taken when estimating continuous Flooring replacement. The policy may contain special endorsements which should be reviewed with the desk adjuster that limit the replacement of flooring in certain states or local jurisdictions. Care should be taken with continuous flooring to stop at door thresholds or natural breaking points where flooring transition normally occurs and runs the same direction as the doorway. 2. Additional estimating and peripheral costs related to flooring line items should be reviewed and considered closely, IE: is the removal of cabinetry required- does flooring continue under cabinetry. 3. Content Manipulation should be estimated on a per room basis. Pack Out should be avoided unless required to facilitate repair, a line item note should be added to explain this increased cost. 4. Multiple Flooring layers. Flooring should be estimated with one finish layer. IE: Carpet over Hardwood would be replacement of the finish layer with a repair of the obsolete second layer. Carpet and Vinyl: 1. (AV) Average grade should be used for all flooring applications. If the unit cost of the item is determined to be above or below AV grade, a line item note must be added to explain the cost variance and how it was determined. 2. Do Not Utilize ITEL or obtain ITEL samples unless prior authorization is received. 3. Apply a 10% waste factor to Sheet Goods and Roll Goods. This is our preferred method of applying waste to flooring.

8 Wood: 4. Do not use a manual drop and fill method for flooring waste calculations. 5. Xactimate Automated Drop and Fill (Flooring Calculator) May be used. Caution should be used with Xactimate s automated calculator. Waste factors, seam lines and flooring direction all play vital roles in the correct application. 6. (-) Remove flooring at Actual SF 7. (+) Replace Flooring at Actual SF plus waste factor 8. Remove and Replace Carpet pad as a single line item, at actual SF. 9. Floor Prep is Not required when replacing roll goods carpet. Commercial grade carpet or residential glue down carpet may require a separate line item for floor prep (scraping of residual adhesive) 10. Floor Prep is usually Not required when replacing Vinyl Sheet Goods. It is common to replace underlayment when replacing vinyl therefore floor prep would not be required. If underlayment is not being replaced and floor prep is added to remove residual adhesive a line item note should be added to explain this variance. 11. The removal of combined items such as Vinyl and Underlayment should be combined into a single line item whenever possible. 12. Leveling Compound may be required as a separate line item for vinyl sheet goods if underlayment is not replaced. 1. Do not add waste to Hardwood Floors. Xactimate pricing includes an average amount of waste. 2. Photographs and documentation should be taken of the floor s thickness whenever possible. 3. Matching Issues: If there is a matching issue during the replacement of laminate or engineered wood flooring and a suitable match is not available line of sight guidelines should be followed. All line of sight decisions should be justified on a case by case basis and subject to specific policy language as well as local, state and federal mandates. Laminate or engineered wood floors should be repaired (with suitable match) or replaced to the closest doorway, threshold, stairway or opening of 3 or less if a suitable match cannot be found. It is generally not necessary or required to refinish into adjoining rooms if the flooring runs the same direction as the doorway. 4. Individual 100% hardwood floor planks can be replaced (if needed) followed by sanding, staining and refinishing of the remaining wood floor. Floor finish can be easily matched as individual boards and adjoining planks have natural color variances. 5. Engineered Wood Floors can be sanded and refinished at least one time for slight cupping or finish discoloration. 6. Engineered Wood Floor pricing is considered to be Nailed Down therefore is normally included in the line item cost. 7. Laminated Wood Floors are considered Glue Down therefore adhesive is normally included in the line item cost. 8. Additional items such as sleepers, transition strips and thresholds should be added separately.

9 Tiles: 9. Dust Protection. Xactimate considers the usage of Dustless Sanding Machines and includes a normal amount of dust protection in the line items costs. If additional allowances for dust removal or protection are required, a separate line item note is required. Items such as add for Dustless Sanding should be reviewed closely as these applications usually entail truck mounted dustless vacuum systems which are not commonly used. 1. There are multiple tile types and caution should be taken to properly identify the correct type of tile flooring. a. Resilient: This includes tufted rubber and vinyl composition flooring. Generally a commercial grade application installed over a solid surface using adhesive. b. Vinyl Tile: Typically located in bathrooms or utility rooms and primarily used for residential applications. These tiles can be installed using adhesive or a more commonly used peel and stick tile that includes an adhesive backing that is pre-attached during manufacturing. c. Ceramic: this includes Quarry, Travertine, Saltillo and standard grade ceramic. This floor application uses a mortar bed and grout and is usually installed on a concrete slab or solid surface. The use of a thick mortar bed or cement / fiber board is also an acceptable means of installation. d. Stone: This includes marble tile, slate, natural stone, man-made (manufactured) stone and terrazzo. These materials are usually always installed over a solid floor surface or concrete slab due to their weight, using mortar and grout. 2. Basic Mortar and grout are included in the Xactimate line item pricing. 3. Cement / fiber board or mortar beds should be addressed as separate line items as required. 4. Sub floor consideration should be given when replacing tile floors. In many cases, cement / fiber board is replaced without affecting the subfloor, while mortar beds or direct adhesive tiles attached to the subfloor may cause significant damage during removal. 5. Additional consideration should be given for residual adhesive, thinset or mastic which will require removal or leveling compound to obtain a solid surface for new application. 6. No additional Waste should be added to tile floor coverings in Xactimate as an average amount of waste is included in the line item pricing. Door and Hardware: 1. Xactimate has numerous door quality and types. These choices range from standard, average, high, premium and deluxe. Doors may also be pre-hung, which includes all mounting hardware and most trim or slab only for just the door. Care must be taken to review the line item description and definition to determine the correct door application. 2. Do not Remove door hardware when replacing doors. Locksets should be Replace only. 3. Detach and reset locksets when they can be reused. 4. Door slabs may need to be Detached and Reset when replacing carpet, add a line item note to explain why this operation is being added.

10 5. Door jambs are rarely removed to replace flooring and should not be considered. Roofing: 1. A 10 x 10 test Square shall be required on each directional roof slope. This test square must have visible corners marked and outlined. 2. All Roof Inspections Require a full roof diagram. Roof measurements will be required only if roof damage is found. 3. All Roofs should be combined into a single roof diagram. All roofs must be entered as Sub Roofs of the main roof. 4. Provide a legend on the diagram to show the direction of the storm. 5. A shingle Gauge and photo of the gauges reading is required on all losses. 6. A Roof Pitch Gauge and photo of the pitch gauge reading is required on all losses. Do Not use the I-phone app as a pitch gauge, an actual pitch gauge is required. 7. Photographs of roof layers are required. 8. All roof inspections must be performed on the roof. If a roof is not accessible a ladder assist should be requested from the desk adjuster. 9. Roof Estimate line items usually include tear off within the line item (ARMV) therefore a separate dumpster should not be added for roofing only estimates. Additional debris and dumpster consideration should be considered if the amount of extra debris would exceed the dumpster onsite utilized for roofing materials. 10. Roof replacements without haul and dispose Line items (ARMVN) can be considered for large roofs. A separate dumpster should be added with the usage of this line item. 11. Use 3 separate Line Items for all roof estimates. a. Remove Shingles at Actual Squares- Includes removal of felt. b. Replace Felt at Actual SF- Do not include Felt Replacement with Shingle Line Item. c. Replace shingles at Actual Squares plus waste. i. Allow 10% waste on a standard gable roof ii. Allow 12% waste on a standard hip roof. iii. Allow 15% waste on a cut-up roof. 12. Ridge Cap is entered as Replace only if applicable since Ridge Cap is removed within the roof tear-off line item. 13. Pipe Jacks, Turtle vents, turbine vents and Drip edge should be entered as Replace Only. 14. Power vents are entered as Remove and Replace or Detach and Reset. 15. Vents and Flashing should only be replaced if damaged. 16. Chimney Flashing, step flashing and counter flashing are generally Not damaged by wind or hail and should not be included in roof replacement estimates. If flashing replacement is deemed necessary it is added as Replace only, except in the case of Chimney flashing which is Removed and Replaced due to extra labor. 17. Detach and Reset Satellite Dish should be entered as D/R. Re-Calibration of dish is not required as the general elevation and azimuth settings are not affected or adjusted.

11 Siding: 18. Ice and Water Shield should only be included if already on the home. If Ice and water shield is required due to local or state codes an enforcement letter or a copy of the code from the local jurisdiction should be obtained. 19. Drip Edge should only be replaced if already on the roof. If local or state code requires the addition of drip edge, a line item note should be added to the estimate. 20. All Roof slopes should be combined into a single roof diagram. All slopes must be entered as Sub Roofs of the main roof. 21. Steep and High charges should be entered as separate line items: a. Additional Cost to Remove- Steep b. Additional Cost to Replace- Steep c. Additional Cost to Remove- High d. Additional Cos to Replace- High 22. Steep and High Charges should only be applied to the actual square foot of the slopes involved. 23. All Roof tarps or Emergency roof repairs must be photographed and documented. While a field adjuster should never remove a tarp, the insured s contractor must allow access to photograph and document damages under the tarp area. 24. Eagleview or other Aerial View Expenses are Not Authorized. If this expense is deemed necessary, pre-approval should be obtained from the desk adjuster. 25. Roof Felt Requirements: a. #15lb Felt should be used on all shingle roof applications between 2/12 and 8/12. b. #30lb Felt should be used on all shingle roof applications above 8/12 c. If the existing roof felt has been documented to be heavier than #15lb felt, #30lb felt should be added with a line item note explaining the variance. 1. Waste is included in Xactimate siding line items, estimate siding replacement at Actual SF. 2. Siding replacement should be on a per elevation basis. 3. All Exterior elevations must be diagramed with measurements and all openings removed, when siding is affected. 4. House wrap or Tyvek should not be added, unless it was already on the home and damaged by the loss. If local or state building codes require the addition of House Wrap when replacing siding, add a line item note explaining the requirement. 5. Door and Window wraps should be estimated as separate line items. 6. Alternative repair methods should be considered for siding replacement. Siding can be detached and reset from area to area on a home to facilitate repairs of smaller areas therefore consider replacing one elevation and using existing pieces to repair other areas. 7. Splatter marks, with no impact damage, that removes oxidation is not considered damaged. Drywall: 1. Xactimate includes a 15% waste factor on all drywall line items, which also includes the mud, tape, screws, corner bead and installation labor up to a two story application.

12 2. If additional scaffolding or height charges over 2 stories are required, add a line item note to explain the additional costs. 3. Drywall Patch should be used to repair small areas of drywall. 4. For drywall repairs under 2 high on the lower wall, use DRY LF (drywall replacement per LF up to 2 high) 5. (DRY MSK) Drywall Masking should be used to cover floors. Do not use Peel and Stick on floor. Do not include Masking of Walls for drywall ceiling repair unless you are protecting the walls to save paint coats. 6. Drywall Line Item Descriptions must be reviewed to determine the correct application to apply. For example, the line item hung, taped, floated, ready for paint entry includes an orange peel textured finish. 7. Although opening of less than 32sf can be ignored you should consider removing multiple openings in drywall during replacement to accurately reflect the SF totals. 8. Minimum charges for drywall should consider ALL types of drywall applications. For example, acoustic ceiling, texture, drywall patch and drywall are all Drywall functions subject to the same minimum charge. Painting: 1. Masking is normally not necessary or required when working with professional painters. Most professional painters do not mask or prep wall surfaces and they do not apply peel and stick floor covering or protection. Xactimate assumes that professional painters will be used for the repairs and uses this assumption for cost evaluations. 2. Do Not add Mask and Prep For Paint. Paint line items include a normal amount of prep and masking. Painters typical move items away from walls and cover with a tarp. If additional masking is needed please explain the variance in a line item note. 3. Typically, walls have 1, 2 or even 3 coats of paint already applied. Therefore pre-existing walls should be painted with 1 coat of paint. 4. Damaged areas, stains or new drywall areas should be painted with a separate Seal coat on the actual damaged, replaced or stained area only. 5. PVA Primer should be considered for heavy Soot or smoke applications. Seal line items are used for new drywall, stains or repainting applications. 6. On new drywall it is expected that 1 coat of Seal and up to 1 coat of finish paint will be required. On certain applications up to 2 coats may rarely be required. If additional coats are needed for high gloss, bright colors or smoke and soot applications, a line item note should be added. 7. Acoustic Ceilings include paint in the mix therefore do not include a separate line item to paint acoustic ceilings after replacement. 8. Trim and molding should be painted as separate line items unless the paint is the same grade, quality and color of the walls being painted. 9. Do not estimate to remove light switches, light fixtures, remove plug covers etc. These are included in paint line items.

13 10. Content manipulation charges are factored into Painting to move items away from the walls. Do not estimate to Move contents out of a room to facilitate painting. Professional painters generally cover and tarp contents in place while painting. If contents require manipulation a line item note should be added to explain the additional cost. Wallpaper: 1. Xactimate includes a waste factor for wallpaper replacement line items. 2. Do not remove wallpaper and wallpaper border separately. 3. Do not remove wallpaper when replacing drywall. Wallpaper would be entered as Replace Only. 4. Remove missing walls, cabinet spaces, windows etc.. from square footage calculations. Cabinetry: 1. Repair to the cabinet boxes should always be evaluated versus automatic replacement. The Furniture Medic can be used to verify a repair but preauthorization by the adjuster is required. Detailed photos should be taken to verify the grade of the cabinets and doors. Age needs documented as well. 2. Matching Upper and Lower Cabinets: If matching becomes an issue keep in mind that we can repair / replace the boxes and sand / stain to match them to the existing cabinet doors. Likewise, cabinet doors can be replaced for matching purposes. 3. Counter Tops can be detached / reset and we should never estimate to remove / replace if not damaged (excludes tile). 4. Sinks, faucets, plumbing, disposals should all be detached / reset if not damaged. Fencing: 1. Documentation needs to be gathered regarding ownership. a. Who installed the fence if known b. How long has the insured owned the house and did the fence come with c. Does the neighbor know anything about ownership d. What side of the fence (insured or neighbor) does the fence post reside 2. Document the total LF of damaged fencing. If the fence is shared write estimate for 1/2 the damages and insert a note in the estimate explaining. For example: 40 LF of shared fencing damaged. Estimate covers repairs to 20 LF due to shared fence. 3. Document and take photos whether the fence is connected to the house. If connected the depreciation applied in the estimate is recoverable. If not, the depreciation is non recoverable. Subrogation 1. Documentation is needed to verify the age of the failed item. Information needed should include: Year the house was build Is the item original construction (if not, when installed)

14 How long has the insured owned the home Has any work been done to the failed item Who has custody of the item (Needs to be saved, preserved and not altered or moved). Notify adjuster immediately Detailed photos of the failed item Make, model, serial number etc. Ice Damming If the adjuster inspects the property and water is continuing to leak into the house due to excessive snow above the ice damming, an additional allowance can be made to remove that excessive amount of snow above the ice dam (snow roof rake). This allowance is only to remove the snow from the roof slope or valley in question and not the entire roof. Risk Alert Criteria: Please document your claim reports addressing the below areas of concern if discovered. Address change: Dwelling is vacant or not owner occupied: Provide address where insured resides Occupancy Hazard: Non-owner Occupied, Roommate/Boarder, Tenant, Seasonal, Vacant, Multiple Families Fire Protection Hazard: No Fire Department within 5 miles and no fire hydrant within 1000 ft. Chimney Hazard: (collapsing, cracking, damaged etc ) Detached Structure Hazard: (collapsing, exterior wall damage, broken glass, roof damage, exceeds 900 square feet etc.) Exterior Wall Hazard: (cracking, holes, peeling paint, asbestos, EIFS Stucco, Log, etc ) Foundation Hazard: (piers/pilings/stilts, settling damage, cracking etc.) Electrical Hazard: (fuses, Knob & Tube, loose / hanging wires, frayed wires etc.) Plumbing: Other than PVC or copper (Galvanized and Polybutylene are not acceptable) Pool Hazard: (diving board, empty pool, pool slide, unfenced or unsecured pool, unmaintained) Construction Hazards: (ongoing renovations, garage converted to living area) Tree Hazard: (Overhanging, rotting / dead, in contact with the dwelling) Roof Hazard: (Asbestos shingles, deteriorating / curling / missing / T-lock shingles, Warped or Wavy Roof, Excessive moss growth, Evidence of Patches / Repairs, Pre-existing Hail damage, leaking roof, etc.) Pre-existing Damage such as: Soffit / fascia / eave damage, missing / damaged gutters, damaged / collapsing fence, etc. Premise Hazard: Debris / Clutter, inoperable vehicles, unsecured appliances, overgrown / unmaintained. Attractive nuisance or liability hazard: Trampoline, trip / fall hazards Fire Hazard: (with details) Animal Hazard: Any dog bites along with any of the following breeds: Akita, Alaskan malamute, American Staffordshire Terriers, Boxer, Chow, Dalmatian, Doberman pinscher, German shepherd, Husky, Pit Bull, Presa Canario (Canary dog), Rottweiler, Staffordshire Bull Terriers, Wolf-dogs, Wolf Hybrids or is a mix of any of the above listed dogs. In addition any dog that is known to be aggressive, has a previous bite history or any dog not kept inside or in a fenced area. Also any livestock or exotic pets. Business Exposure on Premises: (with details) Manufactured/modular/mobile homes: Barns/ranching equipment/any farming: (with details)

15 Homeowner policies where dwelling share a common wall with another dwelling: (with details) Townhouses written as an HO 6 with no HOA coverage. Other: (Pertinent Information you feel the underwriter needs to know) Underwriting also requires on older homes (more than 40 years of age) that we ask the insured the following: When the roof was last replaced? Is the electrical system fuses, knob / tube, or circuit breakers? When was the plumbing updated? (Galvanized and Polybutylene are not acceptable) When was the HVAC updated? John Olson Property Field Claim Supervisor Formerly Fidelity National P&C Group 4905 Belfort Road Suite 110 Jacksonville, FL Tele Fax: [email protected] stillwaterinsurance.com

16