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The Power of iClarify in Rural Areas

The Power of iClarify in Rural Areas
20 July 2015

The Solution To ITV

iClarify™ is a unique property insurance validation tool that provides the insurance industry with the knowledge they need to assess risk with confidence. Developed from the largest nationwide repositories of total loss claims from ClaimsPro and inspection data from SCM Risk Management Services (RMS), iClarify™ is the only validation tool that provides instant access to precise geo-coded property intelligence, valuation data, and streetscape imagery. Our valuations are validated by ongoing research that considers and monitors economic factors, industry trends, local restoration costs, residential inspections, and Canadian total loss data. When combined, this information provides tremendous insight used to ensure that our clients receive the most current, local, and accurate valuation costs through iClarify™.

The Research

In support of this validation, Opta conducts several studies throughout the year which include:

  • Canadian Total Loss Studies
    iClarify™ valuations are updated quarterly based on research into total loss records nationwide and through other total loss claims across Canada’s regions.
  • Canadian Inspection Reports
    New reports from RMS are updated quarterly based on research into total loss records nationwide and through other total loss claims across Canada’s regions.
  • Canadian Reconstruction Cost Studies
    Opta conducts three extensive studies each year from 86 cities across Canada which have been identified as ‘Centres of Influence’. Data is collected from 300 licensed contractors and generates over 7750 data points annually that are used to validate the accuracy and regional relevance of iClarify™ replacement costs across Canada. These studies gather local reconstruction cost data on multiple sample homes which vary in size and features. Local taxes, overhead and profit, productivity, debris removal, general conditions and other essential costs are completely and accurately reflected in the local reconstruction values of homes.

As the largest aggregator of property data in Canada, iClarify™ has the power to generate accurate replacement values on ANY residential risk, be it urban, suburban or rural.

A recent total loss study was conducted for rural communities across Canada using 32 losses. As shown, there is very minimal variance between Contractor Estimates and iClarify Valuations. With an average variance of -1.32% throughout Canada. All 32 results are well within the industry benchmark of +/- 15%.

Province City Number of Stories Total Area
(sq.ft.)
Contractor
Estimate
iClarify Valuation Variance
AB Debolt 1 1,600 $434,300 $395,440 -8.95%
AB Slave Lake 1 1,736 $504,407 $492,416 -2.38%
AB Drayton 1 1,677 $422,948 $411,653 -2.67%
AB Lac La Biche Tri-Level 2,000 $420,000 $459,620 9.43%
AB Slave Lake 2 2,500 $674,518 $666,125 -1.24%
BC Vanderhoof 1 760 $131,762 $134,064 1.75%
BC Peachland 1 1,430 $487,900 $516,688 6%
BC Enderby 1.5 2,098 $407,609 $417,208 2.35%
BC Osoyoos Bi-Level 1,280 $203,136 $199,194 -2%
BC Salmo 1 1,200 $253,521 $229,776 -9.37%
MB Narol 1 1,956 $533,414 $579,524 8.64%
MB Melita 1 1,800 $381,972 $418,806 9.64%
MB St Clement Tri-Level 1,400 $345,920 $347,116 0.35%
ON Rideau Ferry 1 2,657 $634,636 $632,845 -0.28%
ON Ayr, North Dumfries 1 2,258 $563,699 $538,172 -4.53%
ON Carleton Place 1 1,152 $199,637 $188,433 -5.61%
ON Cameron, Kawartha Lakes 1 1,800 $357,676 $357,858 0.05%
ON Goderich 1.5 976 $218,359 $196,518 -10.00%
ON Erinsville, Stone Mills 2 1,286 $258,829 $247,735 -4.29%
QC Pabos (Chandler) 2 1,350 $254,898 $229,136 -10.11%
QC Newport (Chandler) 1.5 1,650 $334,836 $308,996 -7.72%
QC Lac Des Ecorces 1 1,040 $235,534 $226,221 -3.95%
QC Moisie 1 960 $236,667 $220,445 -6.85%
QC Saint-Leon Le Grand 1 840 $157,482 $152,300 -3.29%
NS Port Hawkesbury Tri-Level 1,650 $292,246 $291,639 -0.21%
NB St-Jean-Baptiste 1 1,062 $202,268 $202,300 0.02%
NL Southern Bay 1 1,694 $442,407 $404,290 -8.62%
NL Goos Bay 1 1,500 $457,995 $456,807 -0.26%
NL Fox Roost 2 2,160 $267,963 $265,140 -1.05%
NL Lark Harbour 1 980 $219,391 $208,005 -5.19%
NL Cabonear 2 2,763 $627,098 $672,514 7.24%
NL Bishops Falls Tri-Level 2,680 $426,103 $472,162 10.81%
* Based on 2014 study TOTAL $11,589,131 $11,539,146 -1.32%

The Results

iClarify™ Total Loss Cost Variance - Rural

Drayton, Alberta

Contractor Estimate: $422,948
iClarify™ Valuation: $411,653

Enderby, British Columbia

Contractor Estimate: $407,609
iClarify™ Valuation: $417,208

St. Clement, Manitoba

Contractor Estimate: $345,920
iClarify™ Valuation: $347,116

Rideau Ferry, Ontario

Contractor Estimate: $634,636
iClarify™ Valuation: $632,845


 

Newport (Chandler), Quebec

Contractor Estimate: $334,836
iClarify™ Valuation: $308,996
 

Bishops Falls, Newfoundland

Contractor Estimate: $426,103
iClarify™ Valuation: $472,162

Why do rural homes cost more to construct?

  • Local skilled labour tends to be scarcer in rural areas than in urban. Hence, extra costs for travel and accommodation are incurred when pulling in skilled labour from urban centres for rural work.
  • Equipment and material are usually not available in rural areas which increases the costs for material delivery and equipment sourcing.
  • Access to and around rural sites is usually more difficult and time consuming which further increases the costs of rural construction. Narrow and rough roads, fencing and extensive vegetation all play a part in this increase.
  • Productivity at rural construction sites tends to be lower than in urban centres due to delays in material/equipment deliveries and difficulties in coordinating the timing of skilled labour.

These factors all contribute to increased costs of constructing rural homes over those in more urban settings. On a case by case basis, there could be other secondary factors which tend to drive up rural costs even further.

Supported by 90% of Canadian Insurance Companies, iClarify™ is the only desktop solution that lets you validate property data instantly, accurately and efficiently.



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