How to Read and Use the Xactimate Price List for Water, Fire, and Mold Damage Jobs

What Is the Xactimate Price List?

Overview of Price List Functionality

The Xactimate price list is a dynamic catalog of current, location-based costs for labor, materials, and equipment used in property repairs. It’s one of the most critical tools in the Xactimate platform and serves as the backbone for creating accurate, standardized estimates.

Each item in the software—from drywall replacement to carpet cleaning—has an associated cost, calculated using industry data and updated monthly. These price lists ensure your estimates align with real-world market rates and insurance expectations.

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Why It’s Central to Insurance Estimating

Insurance companies use Xactimate as their standard estimating tool, so accuracy and consistency are key. The price list ensures that:

• You and the adjuster are working off the same cost assumptions

• Pricing reflects regional conditions

• Your estimate stands up to scrutiny and audit

In short, if your price list is wrong, your entire estimate might be rejected or underpaid.

Need help standardizing your internal processes? Read How to Automate Back-Office Operations.

Localized Pricing by ZIP Code

Xactimate provides price lists that are tailored to specific geographic regions. These are identified by a ZIP code prefix (e.g., DFW01 for Dallas-Fort Worth). Every month, Verisk updates the cost of:

• Labor (carpenters, electricians, etc.)

• Materials (drywall, insulation, etc.)

• Equipment (dehumidifiers, lifts, etc.)

This allows you to produce estimates that truly reflect the conditions of the job site.

Learn more about adapting to regional norms in How to Run a Small Business Profitably.

How Xactimate Sets and Updates Prices

Sources of Pricing Data (Vendors, Retail, Surveys)

Xactimate price lists are compiled using:

• Supplier and distributor quotes

• Retail pricing data

• Surveys from contractors across the U.S.

• Feedback from field professionals

This ensures the database stays grounded in real market activity—not just guesses.

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Monthly Updates and Regional Adjustments

Verisk publishes monthly updates to price lists for every major market. Users are prompted to download the latest list when opening a new estimate. These updates factor in:

• Seasonal labor fluctuations

• Material shortages or surpluses

• Changes in supply chain and fuel costs

To keep your estimates current, always download the most recent list before beginning a job.

Labor, Materials, and Equipment Cost Breakdown

Each Xactimate line item includes a built-in breakdown of:

• Labor costs per hour

• Material costs per square foot, linear foot, or unit

• Equipment rental fees per day or hour

Knowing how each item is calculated helps you justify changes and improve estimate accuracy.

How to Access and Apply the Price List

Downloading Price Lists for Your Region

Accessing the right price list in Xactimate is simple but critical. Here’s how:

1. Open Xactimate Desktop or Mobile

2. Go to the Control Center or click the “Price List” tab

3. Enter your project ZIP code

4. Download the latest list (e.g., DFW06_MAY24)

This ensures your project reflects current local prices and reduces discrepancies with the adjuster.

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Setting a Price List in a New Estimate

When starting a new estimate:

• Go to the Estimate Settings

• Under the Price List field, choose the correct code (based on your job location)

• Confirm the effective date is the most recent monthly update

This small step ensures every line item you add is tied to a valid, localized cost structure.

Using the Compare Tool to See Changes

Xactimate allows you to compare old and new price lists to see how costs have shifted. This tool is helpful for:

• Identifying price surges (e.g., lumber during storms)

• Backing up higher bid prices to adjusters

• Monitoring market volatility

For visual learners, it’s a great way to understand pricing trends over time.

Customizing the Price List (When and How)

Adjusting Costs for Market Variability

Sometimes, the base price list doesn’t fully capture:

• Emergency conditions (e.g., CAT events, pandemics)

• Local contractor shortages

• Specialty materials or labor types

You can manually adjust pricing on specific line items by editing the “Unit Cost” field and adding a justification note.

Adding Custom Line Items

For work not covered by standard codes (e.g., niche waterproofing methods), you can create a custom line item. These should include:

• Description

• Unit type

• Quantity

• Justification

Attach photos or vendor quotes when possible to support your pricing.

For more on customized service support, visit How to Build Your Dream Team.

Explaining Price Adjustments to Adjusters

Any time you override a default price, use line notes or a PDF attachment to explain why. Adjusters are more likely to approve:

• Documented surcharges

• Region-specific costs

• Time-sensitive material hikes

The more transparent your pricing, the smoother the approval process.

Best Practices for Accurate Estimates

Double-Check Unit Types (LF, SF, EA)

Misapplying unit types is a common error. For example:

• Linear feet (LF) is used for trim

• Square feet (SF) for flooring

• Each (EA) for items like vents or fixtures

Always confirm that you’re using the correct measurement for each item.

Keep Your Price List Updated Monthly

Make it a habit to download the new price list every month—even mid-job if the project spans multiple weeks. Some carriers may request proof that your pricing is up to date.

Attach Supporting Documentation for Unusual Costs

If you’re billing outside of normal ranges:

• Include a material invoice

• Add vendor quotes for labor surcharges

• Use the price list comparison tool for justification

Want to reduce claim disputes? Read What Is Back Office Outsourcing and Why Companies Should Consider It.

Avoiding Common Price List Mistakes

Using Outdated Data

An old price list could lead to:

• Underpaid claims

• Rejected estimates

• Rework requests from insurers

Always confirm the “Effective Date” on your price list matches the current month.

Misapplying Line Items

Choosing the wrong material (e.g., applying “standard drywall” when the job needs “moisture-resistant drywall”) leads to underbidding and credibility issues.

Forgetting to Update Before Submitting

Don’t let a rush to submit cause a mistake. Review every estimate before uploading—especially the price list code and effective date.

How to Justify and Explain Price List Adjustments to Insurance Carriers

While the standard Xactimate price list is designed to match general market conditions, real-world scenarios often require price modifications. Maybe the project takes place in a remote area, involves urgent response, or uses specialized materials not accounted for in the default price list. When that happens, it’s essential to document, justify, and explain your adjustments clearly—especially when working with insurance carriers.

Here’s how to do it right.

1. Use Line Notes for Every Price Change

Every time you increase the unit cost on a line item—whether it’s drywall installation, mold remediation, or custom cabinetry—add a clear line note explaining:

• Why the standard price didn’t apply

• What the updated price reflects

• Any supporting documentation attached

Example:

Line Note: Price adjusted from $0.75/SF to $1.10/SF due to current shortage of moisture-resistant drywall in the Denver region. Vendor quote attached (ABC Supply, dated 5/1/2025).

These notes show the carrier that your changes are rooted in facts, not guesswork.

2. Attach Third-Party Documentation

Price changes without proof often get flagged or rejected. Attach documents that support your claim, such as:

• Vendor material quotes

• Local labor bid sheets

• Equipment rental receipts

• Contractor invoices

If possible, use PDFs with date stamps and business names to increase credibility.

Want help keeping files organized? Check out Top 10 Accessories for Back Office Teams.

3. Use the Price List Comparison Tool for Backup

Xactimate offers a compare tool that lets you view pricing changes from previous months. If you’re charging more than usual, this tool helps you show:

• A sudden spike in cost (e.g., roofing materials post-hurricane)

• The delta between current and historical prices

• The reason behind temporary surcharges

You can even export a PDF of the comparison for submission with your estimate.

4. Reference Industry Trends or Supply Chain Issues

Carriers are more receptive when your pricing aligns with national or regional trends. Consider citing:

• News articles on building supply shortages

• Trade group publications (e.g., NAHB, RIA)

• Government data (e.g., Bureau of Labor Statistics)

Example:

Justification: Due to the Q2 2025 national lumber shortage reported by the National Association of Home Builders, framing costs have increased 28% in our region.

Backing your numbers with third-party validation builds trust and avoids back-and-forth negotiations.

5. Avoid Guesswork—Calculate with Intent

Never round prices or pad costs without a specific reason. If you're customizing a price:

• Calculate labor time based on task complexity

• Use local market rates per trade

• Break down bundled services (e.g., contents removal + disposal)

Clean calculations show you’re estimating with intent—not inflating the job.

Need support automating calculations? Explore How to Automate Back-Office Operations.

6. Be Proactive: Notify Adjusters Before Submitting

If your estimate contains more than a few modified prices, send a quick summary email to the adjuster:

• Explain which line items were adjusted

• Attach supporting documents

• Offer to walk through the estimate if needed

This step often reduces delays and helps build long-term credibility with carriers.

7. Keep a Pricing Justification Template

Create a template that includes:

• Line item number

• Standard price

• Modified price

• Explanation

• Attachment checklist

Use this for every job where prices are customized. Not only does it reduce errors, but it also improves internal consistency across your estimating team.

Looking for a staffing model to help? Read What Are Staffing Companies?.

The Bottom Line

When it comes to price list adjustments in Xactimate, the golden rule is transparency. Clear notes, real documentation, and a professional approach go a long way in getting your changes approved. In an environment where insurance carriers demand accuracy, your ability to explain your pricing makes the difference between payment and pushback.

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Final Thoughts: Mastering Xactimate Pricing for Faster Approvals

The Xactimate price list is more than just a cost table—it’s the foundation of every successful estimate. Learning how to access, update, and customize it ensures your estimates are:

• Accurate

• Justified

• Ready for approval

By staying current with pricing and clearly communicating any custom costs, you avoid disputes and build trust with adjusters.

Want help optimizing your workflows? Explore How to Streamline Back-Office Operations.

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Sources

• Xactware Pricing Methodology – https://www.xactware.com/en-us/pricing-data/

• Verisk Property Estimating Guidelines – https://www.verisk.com/insurance/brands/xactware/

• Restoration Industry Association (RIA) – https://www.restorationindustry.org