Shedding Light on Reconstruction Costs

first_img The 2018 Camp and Woolsey Wildfires in California caused devastating losses between $15 and $19 billion, according to a CoreLogic Natural Hazard Press Release. In a blog titled “Explaining to Homeowners Reconstruction Costs Versus Other Valuations,” Guy Kopperud, Principal of Industry Solutions at CoreLogic discussed several aspects of reconstruction costs vs. other valuations in the wake of damage caused by recent natural disasters. Kopperud noted that natural hazards such as wildfires have forced insurance carriers to reevaluate the need for more accurate insurance coverage to better protect their policyholders if a natural disaster should destroy their property. Speaking of the consequences of underinsurance, he said that it can “affect the mortgage industry as well.” “Many times, if a homeowner doesn’t have enough insurance coverage to rebuild, they simply walk away from their mortgages,” he added. The effects of natural disasters were evident in CoreLogic’s data on delinquency, wherein the areas affected by natural disasters have seen an increase in delinquency rates while other parts of the country are experiencing a steady decline, he noted.While the focus of insurance and mortgage industries is largely on making Insurance to Values more accurate, Kopperud emphasized that property insurance agents and carriers often receive questions from homeowners who lack clarity on reconstruction cost values and market or appraisal values. Property owners ask three most common questions after receiving a quote from their agent, says Kopperud. One of them pertains to why their homeowner’s insurance coverage is more than what the home is worth. “Many homeowners assume the cost to rebuild a property should be equal to what they paid for the property. However, insurers determine reconstruction cost values (RCVs) using sophisticated residential estimating tools that deliver RCVs at today’s prices,” he said. Answering the aforementioned query, Kopperud explains, “the reconstruction cost value is the cost to replace or rebuild a home to original or like standards at current material and labor costs within a certain geographical area. Meanwhile, a home’s market value is the price a consumer is willing to pay for the home.”Addressing questions about why the reconstruction cost value is higher than what was initially paid for the home, Kopperud said that “CoreLogic research has shown that reconstruction cost values average close to 12 percent more than new construction costs. This is because newly constructed communities can benefit from material discounts and labor efficiencies that a contractor rebuilding a home does not have.”To those homeowners who inquire about using the appraised or assessed value to determine their insurance coverage limits, he indicated that Replacement Cost New (RCN)—a term generally used by the assessor and appraisal industry—is not recommended to determine the cost to rebuild a home. He further explains that this is because RCN is based on the cost to build, at one time, an entire building of equal utility, quality, features, and finishes with neither the contractor nor property owner being under duress to have it done in a shorter time frame. Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Loss Mitigation, Market Studies, News, Servicing February 6, 2019 3,642 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Home / Daily Dose / Shedding Light on Reconstruction Costs Data Provider Black Knight to Acquire Top of Mind 2 days ago Camp Fire CoreLogic Delinquencies Guy Kopperud Insurance Coverage Natural Disasters Reconstruction Costs Woolsey Fires 2019-02-06 Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img Previous: How Aging in Place Is Restricting Young Homebuyers Next: Working in the Clouds Subscribe Demand Propels Home Prices Upward 2 days ago Related Articles Share Save The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Donna Joseph Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Shedding Light on Reconstruction Costs Tagged with: Camp Fire CoreLogic Delinquencies Guy Kopperud Insurance Coverage Natural Disasters Reconstruction Costs Woolsey Fires  Print This Postlast_img read more

Mr. Spock won’t survive the Smart Machine Age … will you?

first_img 21SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr We are on the cusp of a new era, led by artificial intelligence and deep learning. This so-called Smart Machine Age will lead to technology and robots outperforming humans in many tasks. This is bad news on the job front. In fact, research from the University of Oxford states there is a high probability that 47 percent of jobs in the U.S. will be automated over the next 15 years. Further, based on that research along with independent research, the chief economist of the Bank of England predicted that the United States could lose upward of 80 million jobs during that time frame.At first glance you might think the solution is for you to become more robot-like to fit into this brave new high-tech work world. But Ed Hess says don’t start channeling your inner Mr. Spock just yet. On the contrary, the key to staying employable in the Smart Machine Age is to further excel at what makes us unique as human beings—our real, not artificial, emotional and social intelligence.“Mr. Spock valued logic above all else, and frowned upon human beings because of their emotions,” says Hess, coauthor along with Katherine Ludwig of Humility Is the New Smart: Rethinking Human Excellence in the Smart Machine Age. “However, in the coming Smart Machine Age, our emotional intelligence will be the very factor that makes us unique and employable.”Hess and Ludwig explain that our emotions fuel our imaginations and enable personal connections to others in ways that machines cannot replicate. When we use our emotions to serve and collaborate with each other, there are no limits to our thinking, creativity and performance. continue reading »last_img read more