What Is an Xactimate Estimate and Why Does It Matter for Your Insurance Claim?

If you've filed a property insurance claim in Texas, you've almost certainly encountered an "Xactimate estimate" — either from your insurer's adjuster or from a contractor. But what exactly is Xactimate, and why does it matter whether your appraiser is certified in it?

What Is Xactimate?

Xactimate is a software platform developed by Verisk (formerly Xactware) specifically for property damage estimating. It is the industry standard for residential and commercial property claims — used by:

• Insurance company adjusters and independent adjusters
• Restoration and roofing contractors
• Public adjusters
• Property appraisers
• Claims examiners and litigation support professionals

The software contains a comprehensive database of pricing for labor, materials, and equipment — organized by line items with specific part numbers and descriptions. When an adjuster or appraiser creates an Xactimate estimate, they are selecting individual line items (e.g., "RFG 240 — Remove and replace composition shingles, 3-tab, 20 yr") and the software calculates the cost based on current market pricing data updated regularly for each geographic region.

Why Xactimate Matters in Your Claim

Because almost all insurance carriers use Xactimate-based estimates, the pricing database becomes the baseline for what your damage is worth. When your adjuster says your roof costs $18,400 to replace, that number comes from Xactimate pricing for your zip code.

This creates both an opportunity and a risk:

Opportunity: If you or your appraiser also uses Xactimate, you're speaking the same language as the carrier. Disputes become about specific line items, quantities, and pricing adjustments — not fundamentally different methodologies.

Risk: Xactimate contains hundreds of thousands of line items, and selecting the wrong ones — or missing items entirely — can significantly undervalue your damage. An inexperienced user can produce an estimate that's technically "in Xactimate" but substantially incorrect.

Common Ways Xactimate Estimates Fall Short

Carrier adjusters, especially those handling high-volume claims after a storm event, sometimes produce estimates that miss or undervalue damage:

Missing Line Items

• Starter courses for roof replacement (required but often omitted)
• Drip edge and ice barrier replacement where required by code
• Ventilation components damaged by hail
• Interior damage from roof or window leaks
• Additional charges for steep roof pitch

Incorrect Quantities

• Underestimating roof square footage by incorrectly measuring pitch
• Not accounting for waste factors on complex roof shapes
• Missing dormers, valleys, or other intersections

Wrong Pricing Adjustments

• Not applying appropriate labor efficiency adjustments
• Using wrong zip code pricing (particularly at county borders)
• Omitting overtime or mobilization costs for emergency work

Code Upgrade Exclusions

• Failing to apply "Ordinance or Law" coverage for code-required upgrades
• Not including permit costs when required

What "Xactimate Certified" Means

Verisk (Xactimate's developer) offers a certification program for users that demonstrates proficiency in the software. Xactimate certification:

• Validates knowledge of the software's features and capabilities
• Tests understanding of proper line item selection
• Demonstrates familiarity with pricing methodology

For a property appraiser, being Xactimate-certified is an important credential. It means they can produce estimates that are directly comparable to what the carrier's adjuster produced — and defend every line item with specificity.

At REG Consulting, Rene Goodall holds Xactimate certification. This matters in appraisal disputes because it allows us to review the carrier's estimate line by line, identify missing or incorrect items, and produce a competing estimate that uses the same platform and methodology — making our position difficult to dispute on technical grounds.

How to Use This in Your Claim

If you receive an Xactimate estimate from your carrier's adjuster, you can:

1. Ask for the full Xactimate report — not just the summary page. The full report shows every line item and its pricing.

2. Compare it to your contractor's estimate — if your contractor uses Xactimate, the comparison is direct. If they use a different format, ask them to identify which items are missing or priced incorrectly.

3. Review the roof diagram — if the adjuster created a sketch, check the measurements against your actual roof dimensions.

4. Identify the line items — look for items your contractor included that the adjuster's estimate omits entirely.

If the gap between the estimates is significant — and you believe the carrier's estimate is wrong — the appraisal clause in your policy gives you the right to demand independent resolution by qualified, independent appraisers.

The Bottom Line

Xactimate estimates are not automatically correct just because they use industry-standard software. The outcome depends heavily on who is operating it, what items they select, and how they handle the nuances of your specific property and damage.

A Xactimate-certified appraiser — like a Licensed Independent Adjuster experienced with appraisal work — on your side ensures the same professional standards are applied to your documentation that the carrier brings to theirs.

Contact REG Consulting to discuss your claim and how we can help.