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Q&A for SE’s: ITV 2007 Program

What is the ITV program?

The Insurance to Value (ITV) program was developed to make sure our customers have enough coverage to rebuild their home in the event of a total loss.

If a customer was to lose their home due to catastrophic events like fires, tornados and/or hurricanes, they may not have enough coverage within their home policy to rebuild because of increased replacement costs.

What is the Replacement Cost?

The replacement cost of a home is the cost to rebuild today with similar materials and craftsmanship, used during its original construction.

Why is the Replacement Cost of a House, Not the Same as the Sales Price?

The calculation method that we use to determine replacement of a home is based on Reconstruction costs not Market Value or the cost of New Construction.

What is the difference between the costs of Reconstruction, New Construction and Market Value?

• Reconstruction – Builders used for reconstruction require a higher skill set since they are required to work around existing structures, landscaping and power lines. They also need to be able to match up existing materials to new materials. Building experts say that it costs up to 30% more to rebuild a house than to build it new.*

• New Construction – These are typically built as part of a development and contractors are able to purchase lumber, electrical and plumbing supplies at discounts because they are purchasing them in large volumes (economy of scale).

• Market Value – Takes into account the locality of a home, the cost of the land and can be influenced by the quality of the schools, desirability of the neighborhood, etc.

*Researched by Marshall & Swift/Boeckh

What are the goals of the ITV program?

ITV is a proactive program to make sure Travelers has the most up-to-date information on our customer’s homes, so that in the event of a loss, their policy will completely cover them.

The goals of the program are:

• To make sure that our customers policies are up-to-date and accurate so that they are fully covered.

• To acquire estimates on all policies into our MSB system so that we can recalculate on renewal.

|FAST FACT: Travelers data show that on average 43% of homes insured with us are underinsured by 21%. |

How does ITV work?

We have partnered with MSB (Marshall Swift/Boeckh), a company that specializes in collecting property policy information for use in determining an updated replacement cost estimate. Below are the steps of the program:

1. The program begins with a letter to customers asking them to submit a worksheet with all updated information on their homes. The customer can do this either online at or send paper forms via mail.

2. Customers who do not respond to the initial letter will be sent a second request letter. Final follow-up is by a postcard reminder.

3. All of the submitted information will be entered into the MSB replacement cost tool and an updated replacement cost estimate will be calculated. The agent will have full access to the estimator through the MSB link on Agent HQ.

4. An Agent Summary report will be available through the MSB link on Agent HQ via a link displayed on the main page (ITV Delivery Report). This report outlines whether or not the customer’s current coverage would need to be increased.

How much work is involved for agents?

• The ITV program is designed to minimize the workload on agencies.

o Travelers will process all changes.

o All surveys are directed to MSB.

o A help line directly to MSB for questions is offered in our communications to the insured.

Who is targeted in this program?

• Insureds that have been with Travelers for more than 3 years (MSB was not available online prior to this.)

When will the 2007 ITV program launch?

• Agent reports will begin in July for November.

• The first renewals will begin in November.

Scenarios and Solutions: ITV 2007 Program

Scenario #1: After insured submits updated information, they will need new coverage.

• The agent must update estimate with correct information and change current coverage.

• The agent must submit changes to the Business Center (BC) and provide documentation with updated estimate.

• The BC will then update the Work Management Diary and ultimately update the policy.

Scenario #2: After insured submits updated information, coverage is higher.

• Agents must first review the estimate for accuracy.

• If there are no errors, agents will need to update the estimate that was completed with information they have on the property.

• They are directed to contact Underwriters or Counselors with the new “Coverage A” or replacement cost. Underwriters and Counselors will forward the Agent’s request to the assigned ITV Support team.

• Include customer name, policy number and the new "Coverage A" amount when requesting an update.

Scenario #3: Agent asks “Why is my agency part of this program? We do estimates on all of our insureds.”

• Often time, homes undergo changes as their policy ages. For instance, if the insured renovates or builds an addition on their house, it can affect the estimate to be higher than the original. We want to be sure that the customer has the most up-to-date estimate on their home.

• Travelers also needs to enter an estimate on each of policy, so that we can recalculate on renewal.

Scenario #4: Agent asks how to obtain a copy of the worksheet.

• Agents should login to Agent HQ.

• Click on MSB Home Replacement Cost Estimator.

• Click on ITV 2007.

• This will open a PDF version of the worksheet.

• Select the insureds policy number.

• If the worksheet is unavailable, agents can contact the BC to request a copy.

Scenario #5: Agent cannot access MSB.

• Agents should go to ITV 2007 Agent Dashboard Training for help.

• If problem persists, the agent should contact the BC.

• The BC rep will contact the agent once the issue has been resolved (allow 3 business days).

Scenario #6: Agent cannot get access to the Agent Summary Report on the MSB site.

• The report is only available approximately 50 days prior to the first group of renewals (via ITV Delivery report link).

• If agent is having trouble accessing, they should go to ITV 2007 Agent Dashboard Training.

• If problem persists, the agent should contact the BC.

• The BC rep will contact the agent once the issue has been resolved (allow 3 business days).

Scenario #7: Agent asks, “Why did I receive this Agent Packet? I was in a previous

ITV program.”

• Inform agent that those who write policies in multiple states will receive a list of policies for each state that is running the ITV program.

Scenario #8: Agent is terminated.

• To have the agent removed from the program, send Master Producer and Sub Producer codes to Bela Seco at fseco@.

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