CoreLogic , a global property information, analytics, and data-enabled solutions provider, announced the availability of its updated RCT Express reconstruction estimating and risk assessment solution that now includes the ability to provide valuations for large tract homes (LTH). This update gives insurers the ability to better assess and price LTH policies, bringing more powerful coverage adequacy tools to the insurance industry.
“The rising popularity of large tract homes has created new challenges for insurers, who have historically struggled to distinguish these structures from high value homes that have more custom attributes,” said Benjamin Abbott, Product Manager for CoreLogic Insurance Solutions group. “Because of the size of these LTHs, many LTH homeowners policies have valuations more suitable for a custom home.”
Within RCT Express, CoreLogic can identify granular traits of LTH structures. Some general distinctions between LTHs and high value homes include:
- Location and design: LTHs usually make up an entire sub-division and have minimal variations in the building layout.
- Materials: The materials used to construct LTHs are of less quality compared to materials used in the construction of a high-value home.
- Construction protocol: LTH construction practices are designed to be as efficient as possible, resulting in less waste, reducing costs, and increasing overall productivity in time to build.
- Soft costs: Other construction costs, such as contingencies, architect work, engineering fees, and markups, are all more predictable and less expensive in LTHs compared to high value homes.
“With our latest RCT Express release, CoreLogic is making it possible for insurers to bring new levels of accuracy to their clients’ home property insurance policies, helping insurers continue to build trust and confidence with policyholders.” Abbott added.
RCT Express is a reconstruction estimating and risk assessment solution that offers an unprecedented view of structure risk to support the underwriting workflow in helping insurance carriers extend the right coverage and better protect policyholders.