Price List Commentary & New Line Items – May 2018

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Price List Update Commentary

May 2018 was another huge month for the Xactimate pricing department – 24 new line items!

Did you ever wonder why carriers were reluctant to pay for bags to dispose of contaminated items? We did, and as we explored this encumbrance to swift claims settlement we discovered that the reason some carriers were reluctant to reimburse for this activity was two-fold:

(a) Many WTR/HMR line items already include the cost associated with bag material, thus invoicing separately for (WTRBAG Plastic bag – used for contaminated items) is often not warranted

(b) Contractors have been known to deploy hefty style contractors bags, and subsequently invoice for (WTRBAG Plastic bag – used for contaminated items).

As it relates to the carrier’s aversion to pay for the bags twice, that seems reasonable. In addition, their reservations about paying for ~10mil abatement bags when only ~4-mil contractor bags are being consumed, also make sense.

Okay, having established what the issues are, what might the solutions include? How about a hot new line item?

Well, historically, that was the most accurate line item, (DMOBAG Plastic contractor debris bag). Now don’t get too excited water guys, there is a reason why this line item was added to DMO and not WTR – there is no need to work (DMOBAG Plastic contractor debris bag) into every dry down invoice moving forward. That said, at least there is a viable option that reasonably reimburses the Policyholder when the construction bags are required and their use is not otherwise satisfied by the associated line items. It is with this understanding and perspective that we are excited to see the new addition to the price list, (DMOBAG Plastic contractors debris bag).

How about that new Padlock/Disk Lock line item (CPSSTOPP Padlock/disk lock)? Those that are using mobile storage containers to relocate contents will be interested to see that there is now an opportunity to be institutionally reimbursed for the expense associated with the disk lock. It is interesting to note that the line item does not specify whether this is a rental fee or a one time use. We assume it is the latter, but perhaps this line item’s description could benefit from clarity here. If it is a one time fee, then technically speaking these locks would are owed to the Policyholder at the conclusion of the project.

Now, here is a nuanced line item: (DRYPATCHJ Tape joint for new to existing drywall – per LF). There are a lot of discussions about drywall providing suboptimal Policyholder reimbursement on small-scale drywall projects. This is most apparent when working with drywall line items that are calculated by sqft (i.e., the linear foot line items tend to be more favorable for the Policyholder). The sqft line items are the most accurate selection in a Class 3 environment (ceilings and walls floor to ceiling are affected). In order to address these overarching concerns and perceived shortages, the Pricing Department has added this line item. It is reasonable to assume that this line item is to be applied anytime new drywall is butted up against the existing drywall, to include covers and wall to ceiling joints. We think this will really help expedite claims settlement, the only downside we can identify is the fact that we now have to go back and update the associated drywall Insight Sheets…

You guys ever use ducting when setting up negative air systems? Well if so, you will be pumped to see the addition of (WTRDUCT6 Ducting – flexible – 6” round). Restorers were getting crossways with carriers by applying (HVCDCTF6 Ductwork – flexible – insulated – 6” round), which, for a number of reasons, is not an appropriate line item in a mitigation environment, e.g., wrong trade code, includes materials and labor, permanent installation concessions. Alternatively, the new (WTRDUCT6) is a materials only line item and is intended to be applied on a one-time use basis and more accurately reflect the cost to set-up this aspect of the negative air system. That said, restorers are encouraged to employ and invoice for lay-flat ducting (WTRDUCTLF Ducting lay-flat) as it relates to the positive air pressure aspect of a negative air system. To be clear, (WTRDUCT6 Ducting – flexible – 6” round) is to be employed and invoiced when a flexible yet rigid ductwork is required to complete the negative air aspect of the dry out assembly.

How about foam pipe insulation! The International Code Council and local building departments continue to call for an ever-increasing amount of foam pipe insulation. In order to acknowledge this, the Pricing Department has added a myriad of new foam pipe insulation line items. In our estimation, these line items reimburse the Policyholder adequately, and although they represent additional cost to the carriers, this activity and the associated cost will be offset by the reduced frequency of frozen pipe water losses in the coming decades.

You roofers out there will be happy to see the addition of (RFGVENTD Roof vent – dormer type – Metal). This line item was introduced in order to accurately reimburse the Policyholder for vents associated with dormers. It does not necessarily pay more than the existing roof vent line items, however, it helps clarify the acute application of the named vent assemblies. As Geomni continues to build out their automated roof estimating engine we expect to continue to see more granular line RFG line items introduced and adopted.

Now isn’t this interesting, the price list is going full circle now. Polyethylene vapor barriers are installed and subsequently invoiced for via (INSVIS Polyethylene vapor barrier). On the flip side, restorers can now invoice for their removal in a mitigation environment via (WTRCSV Remove polyethylene vapor barrier). We feel this is a prudent addition to the price list due to the fact that invoicing for INS line items in a mitigation environment is generally frowned upon. Historically, restorers were invoicing for (INSVIS Polyethylene vapor barrier) and setting the activity code to “-”. This approach is suboptimal for a number of reasons, to include insulation labor minimums being triggered in a mitigation environment. We believe this new WTR line item will help the carriers and contractors reach ZORA (Zone of Reasonable Agreement) faster, without adding significant cost our burden to either side of the claim.

Finally, let’s all observe a moment of silence for the Apple iPod Shuffle. After 10+ years of good service to the price list and the associated materially interested parties, the Pricing Department has chosen to retire (ELCMP3I MP3 Player – iPod shuffle). The shuffle’s contribution to both our workout playlist and noble claims settlement were immeasurable.

Did we miss anything? Please submit feedback via the “Request a New Line Item” portal. There is proven power associated with speaking with one voice!

Price List Update Summary

1. CELSTERS< Clean stereo - comp. - speakers - small - ext. wipe down 2. CELSTERS<+ Clean stereo - comp. - speakers - small - int. & ext. 3. CONSTOPP Padlock/disc lock 4. CPSSTOPP Padlock/disc lock 5. DMOBAG Plastic contractor debris bag 6. DRYPATCHJ Tape joint for new to existing drywall – per LF 7. FCVPLK++ Vinyl plank flooring – Premium grade 8. HMRDUCT6 Ducting – flexible – 6" round 9. PLMPF1 Foam pipe insulation – 1" wall for 1" to 1 1/2" pipe 10. PLMPF1/2 Foam pipe insulation – 1/2" wall for 1" to 1 1/2" pipe 11. PLMPF1/2< Foam pipe insulation - 1/2" wall for 1/8" to 3/4" pipe 12. PLMPF1/2> Foam pipe insulation – 1/2" wall for 2" to 3" pipe

13. PLMPF1< Foam pipe insulation - 1" wall for 1/8" to 3/4" pipe 14. PLMPF1> Foam pipe insulation – 1" wall for 2" to 3" pipe

15. PLMPF3/4 Foam pipe insulation – 3/4" wall for 1" to 1 1/2" pipe

16. PLMPF3/4< Foam pipe insulation - 3/4" wall for 1/8" to 3/4" pipe 17. PLMPF3/4> Foam pipe insulation – 3/4" wall for 2" to 3" pipe

18. PNTJPP Additional cost to pre-stain wood judges paneling

19. PNTMNTLP Additional cost to pre-stain wood fireplace mantel

20. PNTPNL1 Paint paneling – one coat

21. PNTPNLP Additional cost to pre-stain paneling

22. RFGVENTD Roof vent – dormer type – Metal

23. WTRCSV Remove polyethylene vapor barrier

24. WTRDUCT6 Ducting – flexible – 6" round

Items modified for the May 2018 price lists

1. CELCMPUPS+ Modified labor component yield in (+) assembly.

2. CELFAX+ Modified labor component yield in (+) assembly.

3. CELFAX>+ Modified labor component yield in (+) assembly.

4. CLNCA Modified material component yield in (+) assembly.

5. CLNREG Modified material component yield in (+) assembly.

6. DRYPATCHLF Modified yield for material component DRYTAPE in (+) assembly and added text to Note field of (+) definition to clarify item is for repairing an existing tape joint.

7. FCCAV Removed Default Calculation (F).

8. FCCAV- Removed Default Calculation (F).

9. FCCAV– Removed Default Calculation (F).

10. FCCAV+ Removed Default Calculation (F).

11. FCCAV++ Removed Default Calculation (F).

12. FCCAVB Removed Default Calculation (F).

13. FCCCP* Removed Default Calculation (F).

14. FCCGD* Removed Default Calculation (F).

15. FCCI/O* Removed Default Calculation (F).

16. FCCNFCP Removed Default Calculation (F).

17. FCCNFCPGD Removed Default Calculation (F).

18. FCCWOOL* Removed Default Calculation (F).

19. FCVAV Removed Default Calculation (F).

20. FCVAV- Removed Default Calculation (F).

21. FCVAV– Removed Default Calculation (F).

22. FCVAV+ Removed Default Calculation (F).

23. FCVAV++ Removed Default Calculation (F).

24. FNCB6 Modified item associated with (R) activity.

25. FNCB6H* Modified item associated with (R) activity.

26. FNCB6M* Modified item associated with (R) activity.

27. FNCBR> Modified description and Note field of (+) definition to remove reference to “oversized" trim.

28. FNCBRS> Modified description and Note field of (+) definition to remove reference to “oversized" trim.

29. HMRBAG Added text to Note field of (+) definition to provide a reference of HMR category items that already include assumptions for bags.

30. MBLVTSNK* Modified version 28 Sketch Properties.

31. MBLVTSNKO* Modified version 28 Sketch Properties.

32. PNTCA Modified (+) assembly and definition to reflect painting a metal cold air return and to clarify stripping of old paint/enamel would not be included.

33. PNTBALP Modified labor and material component yields in (+) assembly.

34. PNTDORP Modified labor yield in (+) assembly.

35. PNTDORTP Modified labor and material component yields in (+) assembly.

36. PNTDORTP> Modified labor and material component yields in (+) assembly.

37. PNTRGSTR Modified labor component yield in (+) assembly.

38. PNTTRIMP Modified labor component yield in (+) assembly.

39. RFGPAV Modified labor component yield in (+) assembly.

40. RFGPAV> Modified labor component yield in (+) assembly.

41. TILSWR Modified size range in description and modified Included field of (+) definition to clarify radius trim piece/bullnose is included.

42. TILSWR+ Modified size range in description and modified Included field of (+) definition to clarify radius trim piece/bullnose is included.

43. TILSWR<* Modified Included field of (+) definition to clarify radius trim piece/bullnose is included. 44. TILSWR>* Modified size range in description and modified Included field of (+) definition to clarify radius trim piece/bullnose is included.

45. TILTUB* Modified Included field of (+) definition to clarify radius trim piece/bullnose is included.

46. WTRBAG Modified Note field of (+) definition to include reference to all WTR category items that already include assumptions for bags.

Contents items deleted from the May 2018 price lists

1. ELCMP3I MP3 Player – iPod shuffle

2. TOYDLPP Polly Pocket

3. TOYDLPP- Polly Pocket – Standard grade

4. TOYDLPP+ Polly Pocket – High grade

Material components added for the May 2018 price lists

1. CLNBAG< Plastic debris bag - 42-45 gal 3-4 mil (based on 50 cnt. bx) 2. FCVPLK++ Vinyl plank flooring – Premium grade 3. RFGVENTD Roof vent – dormer type – Metal Green Items added for the May 2018 price lists 1. FCVPLK++ Vinyl plank flooring – Premium grade 2. PLMPF1 Foam pipe insulation – 1" wall for 1" to 1 1/2" pipe 3. PLMPF1/2 Foam pipe insulation – 1/2" wall for 1" to 1 1/2" pipe 4. PLMPF1/2< Foam pipe insulation - 1/2" wall for 1/8" to 3/4" pipe 5. PLMPF1/2> Foam pipe insulation – 1/2" wall for 2" to 3" pipe

6. PLMPF1< Foam pipe insulation - 1" wall for 1/8" to 3/4" pipe 7. PLMPF1> Foam pipe insulation – 1" wall for 2" to 3" pipe

8. PLMPF3/4 Foam pipe insulation – 3/4" wall for 1" to 1 1/2" pipe

9. PLMPF3/4< Foam pipe insulation - 3/4" wall for 1/8" to 3/4" pipe 10. PLMPF3/4> Foam pipe insulation – 3/4" wall for 2" to 3" pipe

11. PNTPNL1 Paint paneling – one coat

12. RFGVENTD Roof vent – dormer type – Metal

Future changes and additions to look for in upcoming price list publications

1. Item for detaching a water heater by a mitigation company (when another company is resetting).

2. Item(s) for temporary tarps secured using sandbags.

3. Item(s) for deluxe grade appliances.

* Signifies changes to multiple items with similar selectors.