Xactimate is the industry standard for property damage estimating. Learn how it works and why professional Xactimate estimates are critical to maximising your claim.
If you've ever filed a property damage insurance claim, the settlement offer you received was almost certainly based on an Xactimate estimate. Xactimate, developed by Verisk, is the property claims industry's standard estimating software — used by insurance carriers, public adjusters and contractors nationwide.
Understanding how Xactimate works can help you evaluate whether your claim has been fairly assessed.
What Is Xactimate?
Xactimate is a specialised software platform that calculates repair and replacement costs based on:
Local labour rates and material prices (updated monthly)
Specific repair activities (line items) with detailed descriptions
Industry-standard pricing databases that reflect real-world costs
Regional adjustments that account for geographic cost differences
Every repair activity — removing a section of drywall, installing new shingles, painting a ceiling — has a corresponding Xactimate line item with a defined scope of work and pricing.
Why Xactimate Matters for Your Claim
When an insurance carrier sends their adjuster to inspect your property, the resulting estimate is generated in Xactimate. When your public adjuster prepares an independent estimate, they also use Xactimate. This means both sides are working within the same system — but the scope of what's included can vary dramatically.
The difference between a carrier's estimate and a public adjuster's estimate usually isn't about pricing (since both use the same database). It's about scope — what line items are included and how comprehensively the damage has been documented.
Common Gaps in Carrier Estimates
Insurance company estimates frequently omit or undercount:
Overhead and profit for general contractors (typically 20% combined)
Code upgrade costs required for compliant repairs
Related damage in adjacent areas (e.g. baseboards when flooring is replaced)
Content manipulation (moving furniture to access repair areas)
Proper matching of materials (replacing all tile in a room rather than patching)
Disposal and debris removal costs
Temporary protection during construction
These omissions can reduce an estimate by 30–50% compared to what the actual repair will cost.
How a Public Adjuster Uses Xactimate
A skilled public adjuster creates a comprehensive Xactimate estimate that includes:
Every damaged element documented during inspection
All necessary line items for complete, code-compliant repairs
Proper overhead and profit margins
Regional pricing accurate to your specific location
Matching and uniformity requirements
Detailed notes and supporting photographs for each scope item
This estimate becomes the foundation for negotiation with the carrier.
The Bottom Line
Xactimate is a powerful tool, but like any tool, the output depends on the person using it. A carrier's adjuster preparing a quick estimate in 30 minutes will produce a very different result from a public adjuster spending several hours building a thorough, fully documented scope of loss.
When your settlement is at stake, the quality of the Xactimate estimate matters — and that's where professional representation makes the difference.