Xactimate: The Software Behind Every Insurance Estimate

Every claim runs through this software

Xactimate is not optional. Nearly every insurance repair estimate in the United States is built in it. The software contains a database of thousands of line items covering every construction material and labor task.

Each line item has a price based on local market data, updated monthly by ZIP code. When your adjuster writes your estimate, they're selecting items from this database and plugging in quantities. The line items are the building blocks of your settlement.

Reading yours in plain English

Your estimate is organized by room or area. Within each room, you'll see individual line items. Each one has a description, a quantity (measured in square feet, linear feet, or per-unit), a unit price, and a total.

Something like: 'Remove and replace drywall, 1/2 inch, 150 SF, $2. 85/SF, $427. 50.

' That's one task in one room. Your full estimate is a stack of these line items across every affected area. The totals add up to your settlement.

Once you see the pattern, it's not complicated.

Where the money goes missing

Adjusters build estimates by selecting which line items to include. Items get left out, sometimes intentionally, sometimes by oversight. The most commonly missing items: overhead and profitOverhead & Profit: The 20% Most People Leave on the TableOn my own claim, I didn't know O&P existed until a contractor looked at my estimate and said, 'Where's the O&P line?' That missing line item was wo...
Read more →, contents manipulation (moving furniture), appliance disconnectAppliance Disconnect & Reconnect: $800-$1,500 That's Almost Never ListedWhen your kitchen or laundry area needs repairs, every appliance has to be disconnected, moved out, and reconnected afterward. Xactimate has separa...
Read more → and reconnect, drywall textureDrywall Texture Matching: Why Your Patch Still Shows After PaintingAfter drywall is repaired or replaced, the texture on the new section needs to match the rest of the wall or ceiling. Sound simple? It's not. This ...
Read more → matching, full-room paintingFull-Room Painting: Why Touching Up a Patch Never WorksWhen walls are repaired after water damage, fire, or other covered losses, the repainted patch rarely matches the surrounding wall. I watched this ...
Read more → instead of spot painting, subfloor replacementSubfloor Replacement: The Hidden Layer That Ruins New FlooringOn my own claim, the adjuster walked right over soft spots in the kitchen floor and never said a word about the subfloor. Not a word. It wasn't unt...
Read more →, and code upgradesYour Walls Are Open. Now the Inspector Wants $5,000 in Upgrades.Nobody warned me about this one. When the drywall came down on my claim, I thought we were just replacing what got damaged. Then the building inspe...
Read more →.

If a task is required for the repair but has no line item in the estimate, it's missing and needs to be added. Each omission might be $300-$2,000. Stack five or six of them and you're looking at a $5,000-$10,000 gap.

That's real money.

Pricing is local but not always current

Xactimate prices are based on local market data and updated regularly. They include both material and labor costs. The prices represent a fair market rate for your specific ZIP code.

But Xactimate doesn't always keep pace with rapid changes. If lumber prices spike or labor rates jump after a major storm, the software may lag behind. If a contractor tells you the Xactimate price for a particular item is too low, they may be right.

Get two or three contractor bids and compare them to the Xactimate pricing. Consistent discrepancies are evidence of a pricing gap.