Dear Mobile Claims Professional,

Uncertainty in today's construction market is not surprising. Since the onset of Covid-19 and multiple variants later, we have learned to deal with radically changing prices in most residential and commercial construction segments.

At CoreLogic®, we gather and monitor cost data daily across the U.S. and Canada. The fuel price has always had a measure of volatility. Whether natural disasters impact pricing on a local level or world events, such as what we see now with Ukraine, the CoreLogic team analyzes the information to determine what materials are involved, geographic location, and to what extent it will have a permanent effect.

CoreLogic values our clients, and we pride ourselves on the accuracy of our products. While it is impossible to immediately reflect the effect of sudden fuel cost spikes on fuel-related items, we are offering the following estimating recommendations to address fuel price changes currently being encountered across the U.S. and Canada.

Our CoreLogic Mobile Claims® material and labor pricing have always included consideration for fuel costs, i.e., transport vehicles to collect or deliver materials to job sites and equipment requiring fuel such as generators, commercial air compressors, forklifts, etc. Mobile Claims incorporates the IRS rate of $0.59 per mile for 2022. The IRS does not make changes to this based on current events and only revises it annually.  Mileage allowance is an all-inclusive item for fuel and regular maintenance on the vehicle and is the most widely used method for companies and carriers. However, it is limiting when fuel prices unexpectedly spike significantly, such as in the current environment. Additional or adequate compensation may be required for mileage line items such as FEE-Permits & Fees and/or FEE - Mileage Charge, Per Mile.

To compensate for higher fuel costs, CoreLogic is adding an additional FEE - Fuel Surcharge, (ea) line item to the Mobile Claims platform. This line item will allow the user to input specific amounts agreed on by the carrier or contractors.

We anticipate this addition to be implemented into the product by early to mid-April, with the release of the April database update. In the meantime, we recommend inputting a user-defined or miscellaneous line and adjusting the description for fuel surcharge. It is recommended that this alteration be noted within the estimate and all associated parties made aware of the alteration and its intended use.

At CoreLogic, we are committed to providing the most accurate and beneficial resolutions for your estimating needs.

Client Services Team

Released:  April 2022

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