*Aggregate Material Index of the 9 most commonly used building materials Residential

Symbility Solutions™ is pleased to provide you with an overview of updates in the 1st Quarter 2015 release of CoreLogic® Insurance Solutions’ Partial Loss Database.

This overview will provide you with an understanding of this quarter’s changes in residential building costs.

To ensure that our clients receive the most current building material and labor costs, CoreLogic® Insurance Solutions’ Data Team continuously researches labor, material, and equipment costs (hard costs) including mark-ups. Our research is extended to cover taxes and fringes (soft costs) for reconstruction work performed within the insurance industry in the United States and Canada. Research professionals monitor data from nearly 3,000 unique economies in the United States and over 100 in Canada. The process includes monitoring demographics and econometric statistics, government indicators, and localization requirements, including market trends. Other factors in this process include:

 Wage rates for more than 85 union and non-union trades

 Over 100,000 line items of construction data

 Productivity rates and crew sizes

 Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information.

NOTE: The cost information in this bulletin is only intended to give you a general

sense of reconstruction cost trends in North America. We do not advocate using these

factors when adjusting renewal values or claim estimates for specific locations or across your book of business. The building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials used in a typical 2,400 square foot, single family, 2-story home. For more information or explanation, please contact your sales consultant or account manager.

CLAIMS BULLETIN

CLAIMS DATA UPDATE BULLETIN-USDC

CLAIMS DATA UPDATE BULLETIN-USDC

1

_Quarter

_{2015 Symbility™ Mobile Claims}

TECHNICAL SUPPORT: 1-877-862-8069 7 a.m. to 7 p.m. CT  [email protected] © 2015 Symbility Solutions. All rights reserved.

© 2015 CoreLogic®, Inc. and its licensors.

MATERIAL COSTS

QUARTERLY

CHANGES

U.S.

CORELOGIC® INSURANCE SOLUTIONS DATA TREND NOTES – USA Plywood

Plywood prices are now starting to stabilize after a big run-up in the second half of 2014. Price increases were in response to a fire in July that destroyed the Swanson Springfield Plywood and Veneer Mill in Oregon, which represents roughly 2% of the North American production. After the news broke of the fire, a large quantity of plywood orders began driving prices upward throughout North America. Despite the short-term spike in prices, experts do not believe the loss of the Mill will continuously disrupt the plywood market long term, as prices will eventually stabilize in 2015.

Drywall

Drywall prices leveled off throughout the quarter. However, it is still trending in a positive direction as housing starts continue to increase. In addition, the price of drywall’s main component, gypsum, continues its steady incline, as it reflects positive home construction demand today and in the near future.

CORELOGIC® INSURANCE SOLUTIONS DATA CHANGES – AT A GLANCE

The average for U.S. building materials increased 0.4% for the quarter. For labor, the average wage rate increased 0.4%, based on construction trade contracts that were renewed during the quarter.

CoreLogic® Insurance Solutions monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

US

Asphalt Felt 15# -0.7 -0.9 -0.3 -0.3 0.0 -0.3 -0.1 -0.3

Asphalt Shingles 25yr, 3-tab -0.4 -0.6 -1.6 -0.6 -0.2 1.1 -0.8 0.1

1/2" Copper Pipe -1.0 0.3 -1.5 -0.2 -0.4 -1.0 -0.4 0.8

CopperWire -0.8 0.3 -3.3 0.3 -0.6 -1.4 -1.7 0.5

1/2" Drywall 0.0 0.4 2.6 3.1 1.5 3.9 4.7 4.5

2x4 Lumber 1.4 1.7 2.9 0.7 -2.1 1.1 6.3 3.0

1/2" Plywood 2.9 10.4 0.7 -2.8 -5.0 1.3 6.9 3.0

R-13 Fiber Batt Insulation 0.3 0.6 1.6 2.7 5.6 4.8 1.7 0.8

Ready-Mix 0.9 -0.2 -0.7 2.3 1.4 0.1 -0.6 2.0

*Aggregate Material Index of the 9 most commonly used building materials – Residential ** This table represents the percent change from one quarter to the next period.

0.3 0.7 % 0.4 % 0.0 1.4 2.9 1.0 % 0.8 % 0.9

CLAIMS DATA UPDATE BULLETIN-USDC

1

_Quarter

_{2015 Symbility™ Mobile Claims}

TECHNICAL SUPPORT: 1-877-862-8069 7 a.m. to 7 p.m. CT  [email protected] © 2015 Symbility Solutions. All rights reserved.

© 2015 CoreLogic®, Inc. and its licensors.

CORELOGIC® INSURANCE SOLUTIONS DATA TREND NOTES – CANADA Copper Wire

Copper wire prices took a breather in the 4th quarter of 2014 with no change, while copper pipe decreased 0.4%. Uncertainty for manufacturing production is caused by a continuous slump in overall mining performance. Global copper prices continue a downward trend, influence suggesting both materials will decrease further into the upcoming quarter.

Plywood

Plywood prices continued their incline with a 5.0% increase over the quarter. The affects of high demand in the U.S. market has filtered into the Canadian market throughout the second half of 2014.

CORELOGIC® INSURANCE SOLUTIONS DATA CHANGES – AT A GLANCE The average for Canadian building materials increased 0.7% over the quarter. For labor, the average wage rate revealed little to no change for the quarter, based on construction trade contracts that were renewed during the quarter.

CoreLogic® Insurance Solutions monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

CANADA

Asphalt Felt 15# -0.3 -0.6 0.0 0.0 -0.1 -0.3 -1.4 -0.6

Asphalt Shingles 25yr, 3-tab 0.4 -1.2 -0.2 0.4 -0.1 -1.3 -1.1 0.6

1/2" Copper Pipe -0.4 -0.1 -0.3 -0.8 -0.5 -1.1 0.3 -2.0

Copper Wire 0.0 0.2 -2.0 -1.6 -0.3 -1.4 -2.1 -1.6

1/2" Drywall -1.9 -2.2 -1.6 1.1 -0.5 -0.8 0.9 0.0

2x4 Lumber 1.4 2.4 2.6 2.3 0.1 2.2 4.9 3.8

1/2" Plywood 5.0 9.7 -1.7 -1.0 -3.4 -1.7 3.6 4.8

R-13 Fiber Batt Insulation -1.5 -0.2 0.9 0.2 0.1 1.9 -0.4 1.3

Ready-Mix 0.2 0.1 -1.8 2.6 1.8 -1.1 -1.3 3.0

*Aggregate Material Index of the 9 most commonly used building materials – Residential **This table represents the percent change from one quarter to the next period.

MATERIAL COSTS

QUATERLY

CHANGES

CANADA

ASPHALT FELT ASPHALT SHINGLES COPPER PIPE COPPER WIRE DRYWALL LUMBER PLYWOOD INSULATION READY MIX

MATERIAL

COSTS

ANNUAL

CHANGES

CANADA

U.S.

TECHNICAL SUPPORT: 1-877-862-8069 7 a.m. to 7 p.m. CT  [email protected]

© 2015 Symbility Solutions. All rights reserved. © 2015 CoreLogic®, Inc. and its licensors.

Q. What factors are considered for the claims labor billing rate?

A. The billing rate found in the CoreLogic Claims database is

made up of many different components. These components consist of an hourly base rate, employee costs,

sub-contractor overhead, and sub-sub-contractor profit. Examples of employee costs include: benefits and fringes,

unemployment, social security, health care, disability, and worker’s compensation. Sub-contractor overhead is split between business overhead and job overhead. Business overhead represents fixed costs of doing business and costs that are not directly associated with a particular project or job. Examples of business overhead are general overheads such as: office rent, office equipment, utilities, and

marketing. Job overhead represents costs that are directly associated with site work. Examples of job overhead might include: shared job equipment rental, tools, consumable job supplies, uniforms, permits, fees and warranties. Both types of overhead can vary by trade.

CLAIMS DATA UPDATE

BULLETIN-USDC

1

Quarter

2015

FAQ’s

MATERIAL

COSTS

ANNUAL

CHANGES

p

New Item Updates for January 2015

(63 Items)

Category Description Action UOM

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Remove & Reset EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Remove EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Replace EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Tear Out EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Remove & Reset EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Remove EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Replace EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Tear Out EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Remove & Reset EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Remove EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Replace EA

RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Tear Out EA

SFG-Fascia Fascia, Aluminum, 10" Remove & Reset LF

SFG-Fascia Fascia, Aluminum, 10" Remove LF

SFG-Fascia Fascia, Aluminum, 10" Replace LF

CLN-Exterior Fascia, Aluminum, 10" Clean LF

PNT-Exterior Fascia, Aluminum, 10" Paint LF

SFG-Fascia Fascia, Aluminum, 10" Tear Out LF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Remove & Reset SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Remove SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Replace SF

CLN-Ceiling, Floors and Walls Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Clean SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Tear Out SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Remove & Reset SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Remove SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Replace SF

CLN-Ceiling, Floors and Walls Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Clean SF

MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Tear Out SF

INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Remove & Reset SF

INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Remove SF

INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Replace SF

INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Tear Out SF

INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Remove & Reset SF

INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Remove SF

INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Replace SF

INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Tear Out SF

INS - Rigid Insulation, Polyisocyanurate, 4" Remove & Reset SF

INS - Rigid Insulation, Polyisocyanurate, 4" Remove SF

CLAIMS DATA UPDATE BULLETIN-USDC

Category Description Action UOM

INS - Rigid Insulation, Polyisocyanurate, 4" Replace SF

INS - Rigid Insulation, Polyisocyanurate, 4" Tear Out SF

FEN - Chain Link Fences Security Fence Top, Barbed Wire Remove & Reset LF

FEN - Chain Link Fences Security Fence Top, Barbed Wire Remove LF

FEN - Chain Link Fences Security Fence Top, Barbed Wire Replace LF

CLN - Exterior Security Fence Top, Barbed Wire Clean LF

FEN - Chain Link Fences Security Fence Top, Barbed Wire Tear Out LF

MIT - Equipment & Accessories Heat Drying, Per Day, Thermal Exchanger, Self Regulating Special EA

MIT - Equipment & Accessories

Heat Drying, Per Day, Thermal Air Exchanger, Booster

Unit Special EA

MIT - Equipment & Accessories Heat Drying, Per Day, Drying Blanket or Mat Special EA

MIT - Equipment & Accessories Additional Remote Monitoring, Sensors (EA) Special EA

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Remove & Reset Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Remove Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Replace Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Tear Out Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Remove & Reset Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Remove Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Replace Each

HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Tear Out Each

RFG - Accessories Felt, Synthetic Good Remove SQ

RFG - Accessories Felt, Synthetic Good Replace SQ

RFG - Accessories Felt, Synthetic Very Good Remove SQ

RFG - Accessories Felt, Synthetic Very Good Replace SQ

RFG - Accessories Felt, Synthetic Excellent Remove SQ

RFG - Accessories Felt, Synthetic Excellent Replace SQ

TECHNICAL SUPPORT: 1-877-862-8069 7 a.m. to 7 p.m. CT 

[email protected]

© 2015 Symbility Solutions. All rights reserved. © 2015 CoreLogic®, Inc. and its licensors.