Understanding Xactimate — What Homeowners Need to Know
If your insurance carrier uses Xactimate to calculate your repair costs, you should understand what it is—and why it matters for your claim.
What Is Xactimate?
Xactimate is the most widely used estimating software in the insurance industry. It provides standardized pricing for materials, labor, and equipment based on your region. Homeowners often assume Xactimate is “the law,” but it’s simply a guideline.
How Carriers Use It
• To standardize claim payouts
• To justify pricing decisions
• To restrict what contractors can charge
• To ensure estimates follow internal scope guidelines
But Xactimate is only as accurate as the person writing the estimate.
Why You Need Someone Fluent in Xactimate
Understanding Xactimate helps you identify:
• Missing line items
• Incorrect quantities
• Outdated pricing
• Improper trade sequencing
• Denied items that should be covered
Without expertise, homeowners can’t see what the adjuster didn’t include.
Common Misconceptions About Xactimate
“It’s the same as a contractor bid.”
Incorrect. Contractors use real market costs; Xactimate is averaged pricing.
“It includes every required task.”
Wrong. Adjusters must manually add specialty items.
“The adjuster’s estimate is final.”
False. Xactimate is editable, and carriers approve supplements daily.
If you want a breakdown of what your adjuster left out, send us your estimate.
