Xactimate Guide: Accurate Estimates for Contractors

If you're a restoration or reconstruction contractor, you've almost certainly encountered Xactimate — the industry-standard estimating software used by insurance carriers, adjusters, and contractors nationwide. Understanding how it works isn't just helpful; it's essential for getting paid fairly.

What Is Xactimate?

Xactimate, developed by Verisk, is a software platform used to create detailed construction and repair estimates. It provides standardized pricing based on geographic location, material costs, and labor rates.

Key features:

• Line-item pricing for virtually every construction activity
• Regional pricing databases updated monthly
• Sketch tools for floor plans and measurements
• Industry-standard format accepted by all major carriers

Why Carriers Use Xactimate

Insurance companies use Xactimate because it creates a common language for estimating. When both the carrier and the contractor use the same platform, disputes become about scope and line items rather than pricing methodology.

This standardization is a double-edged sword. It means you need to know the platform's conventions to avoid losing money on technicalities.

Common Pitfalls for Contractors

1. Missing Line Items

Xactimate's database contains thousands of line items, and it's easy to miss ones that apply to your job. Common omissions include:

• Content manipulation (moving furniture to access damaged areas)
• Masking and protection of adjacent surfaces
• Equipment setup and monitoring charges
• Waste removal and disposal fees

2. Incorrect Measurements

Carrier adjusters sometimes use simplified measurements that undercount square footage. Always verify measurements independently and document discrepancies.

3. Scope Wording Differences

Two estimates can describe the same work using different Xactimate codes with different prices. The wording matters. For example, "remove and replace baseboard" vs. "detach and reset baseboard" can result in significantly different line values.

How to Use Xactimate to Your Advantage

Compare Line by Line

When you receive a carrier estimate, don't just look at the bottom-line total. Compare every line item against your own estimate. Look for:

• Items present in your estimate but missing from the carrier's
• Items where the carrier used a lower-cost code for the same work
• Quantity differences (square footage, linear footage, labor hours)
• Overhead and profit markup discrepancies

Document Your Scope

Support every line item with documentation — photos, moisture readings, industry standards, or manufacturer specifications. The more evidence you provide, the harder it is for a carrier to deny legitimate scope items.

Use Price Lists Strategically

Xactimate pricing varies by region and is updated monthly. Make sure your estimates use the correct price list for your area and the date of loss. Outdated price lists can cost you thousands.

The Value of a Second Opinion

If you're not an Xactimate expert, having a professional estimator review your claims can pay for itself many times over. They'll catch missing line items, incorrect codes, and scope gaps that you might miss.

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Xactimate doesn't have to be intimidating. Once you understand its conventions and learn to compare estimates systematically, you'll recover more on every claim.

Want an expert review of your next estimate? ProXact Estimates specializes in comparative analysis that identifies every dollar of missing value. Get started today.