Xactimate and Estimating Software Used in Claims Adjustment

Estimating software — most prominently Xactimate, produced by Verisk Analytics — occupies a central role in property insurance claims adjustment, shaping how repair costs are calculated, documented, and disputed. This page explains how these platforms function, how adjusters deploy them across claim types, and where their outputs become contested. Understanding the mechanics of claims estimating software is essential for anyone involved in property damage claims adjustment services or the broader insurance claim investigation process.

Definition and scope

Xactimate is a line-item estimating platform used by insurance carriers, independent adjusters, public adjusters, and contractors to produce standardized cost estimates for property repair and replacement. Verisk Analytics, the parent company, licenses the software and maintains a continuously updated price database — referred to as Xactware's price list — that reflects localized labor and material costs segmented by geographic market area.

The platform operates on a database of individual pricing components (called line items) that cover demolition, framing, drywall, roofing, painting, flooring, mechanical systems, and hundreds of other trade categories. Each line item includes a unit cost derived from Xactware's regional pricing research. Adjusters assemble these components to build a scope of loss that reflects the documented damage.

Xactimate is not the only estimating system in active use. CoreLogic's Symbility Claims Connect (now branded as CoreLogic Claims Estimating) is a direct competitor used by a subset of carriers, particularly in Canada and portions of the US market. Simsol serves a segment of independent and public adjusters. For auto claims, CCC Intelligent Solutions, Mitchell (Enlyte), and Audatex (Solera) function as the dominant estimating platforms — each maintaining their own labor time and parts-cost databases independent of Xactware's methodology.

The scope of Xactimate's reach is substantial: Verisk has stated that Xactimate is used in the preparation of more than 4.5 million estimates annually in North America (Verisk Analytics, Xactware Product Overview). Carriers, independent adjusters, and contractors operating in commercial property claims adjustment and residential property contexts alike reference Xactimate outputs as a baseline for claim settlement negotiations.

How it works

The estimating process within Xactimate follows a structured sequence:

Inspection and scoping — The adjuster conducts a physical or virtual inspection, documenting all damaged components with measurements, photographs, and field notes. Desk adjuster vs. field adjuster workflows diverge at this step; field adjusters measure on-site, while desk adjusters often work from contractor estimates, photos, or third-party measurement services.
Sketch creation — The adjuster draws a floor plan or roof diagram within Xactimate's sketch tool, which automatically calculates square footage, perimeter, and roof facet areas. Roof measurements are frequently supplemented by aerial measurement reports from services such as EagleView or GAF QuickMeasure.
Price list selection — The adjuster selects the regional price list corresponding to the loss location and the relevant date of loss. Xactware updates price lists monthly; the applicable list is the one in effect at the time of the estimate, not at the time of the original loss event.
Line-item assembly — Each damaged component is entered as a discrete line item. The adjuster selects the item from a searchable database, enters the quantity, and applies any applicable modifiers (height, complexity, overhead and profit where warranted).
Overhead and profit (O&P) — A general contractor's overhead and profit — typically calculated at 10% overhead and 10% profit on applicable line items — may be added when the complexity of the restoration requires a general contractor to coordinate subcontractors. This addition is a frequent point of dispute; the Insurance Information Institute acknowledges general contractor coordination costs as a legitimate component of replacement cost value (Insurance Information Institute, How Claims Work).
Depreciation and ACV/RCV calculation — For actual cash value (ACV) policies, depreciation is applied to applicable components. The estimate generates both the ACV and replacement cost value (RCV) figures, which govern how much is paid initially versus after repairs are completed.
Export and delivery — The completed estimate is exported as a PDF or transmitted electronically to the carrier, policyholder, or contractor.

Common scenarios

Residential property claims represent the highest-volume use case. Wind, hail, water intrusion, and fire losses are routinely estimated in Xactimate. Roofing claims, in particular, depend on the software's slope multipliers and manufacturer-specific shingle line items. For storm and wind damage claims adjustment, adjusters must select the correct wind-speed-tier line items and apply region-specific labor modifiers.

Catastrophe deployments place unique demands on the software. During large-scale events, Xactware may issue temporary surge pricing adjustments to regional price lists — an acknowledgment that post-disaster labor and material scarcity drives costs above baseline levels. Adjusters deployed under catastrophe adjuster services arrangements must verify they are using the price list version authorized by the assigning carrier.

Water and mold claims involve a parallel workflow using Xactimate's companion platform, XactContents, or specific structural drying line items. Psychrometric calculations, equipment drying logs, and daily monitoring records integrate with the estimate to document mitigation scope. Water and mold damage claims adjustment frequently involves third-party review of whether drying equipment line items are properly supported by equipment placement logs.

Public adjusters use Xactimate to prepare counter-estimates on behalf of policyholders. Because both parties may produce Xactimate estimates using the same price list, disputes often center on scope differences — which line items are included — rather than unit pricing. This dynamic is a central feature of public adjuster services explained.

Contents claims generally fall outside Xactimate's primary function. Platforms such as Xactware's XactContents or independent solutions like Encircle handle personal property inventories and depreciation schedules separately from structural estimates. Contents claims adjustment services involve distinct methodologies that do not map directly to Xactimate's construction cost database.

Decision boundaries

Several critical boundaries govern where estimating software outputs are authoritative, contested, or insufficient.

Price list applicability vs. actual contractor bids — Xactimate prices represent a statistical composite of regional market pricing, not a binding contractor quote. When a contractor's actual bid materially exceeds the Xactimate estimate, the difference may form the basis for a supplemental claim. The insurance appraisal process is frequently invoked when scope and pricing disputes cannot be resolved through supplemental submission.

Xactimate vs. Symbility methodology differences — The two leading platforms calculate labor differently. Xactimate uses a labor-hours-per-unit model applied to composite tasks; Symbility uses a distinct database structure and geographic segmentation. Estimates prepared in one system may not cross-reference cleanly with the other, which creates reconciliation challenges when carriers and policyholders are working from different platforms.

Regulatory framing — State insurance regulations govern how carriers must handle disputed estimates. The National Association of Insurance Commissioners (NAIC) Model Unfair Claims Settlement Practices Act establishes baseline standards for prompt and fair claims handling (NAIC Model Laws, Regulations and Guidelines, #900). Adjusters who produce estimates that systematically understate repair costs may be subject to bad faith findings under state insurance codes — a risk discussed in detail at bad faith insurance claims and adjuster conduct.

Licensing and professional standards — Xactimate proficiency is not itself a licensing requirement in any state, but the adjuster licensing requirements by state framework governs who may legally prepare and submit estimates on behalf of a carrier or policyholder. Several designations — including Xactware's own XM8 certification program — assess adjuster competency with the platform, but these are voluntary credentials, not regulatory prerequisites. Voluntary credentialing is covered more broadly at adjuster certifications and designations.

Software output as evidence — In appraisal and litigation contexts, Xactimate estimates are admissible as evidence of claimed repair costs but are not self-proving. Courts and appraisal panels may require supporting documentation — contractor bids, inspection reports, photographs — before accepting an estimate as the basis for an award. The probative weight of a software-generated estimate depends on the completeness of the underlying scope documentation, not on the software's use alone.

References

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