Mastering Xactimate Water Damage Estimates: A Pricing Guide

When water damage strikes a home or commercial building, restoration professionals are expected to move fast. But speed means nothing without accurate estimates—and that’s where the Xactimate water damage price list becomes your most valuable tool. Whether you’re drying a flooded basement or replacing soaked drywall, knowing the right line items and pricing helps you get paid fairly, build trust with insurers, and close jobs faster.

This guide explains how to use the Xactimate price list for water damage, the most common line items, and how to avoid mistakes that cost time and money.

Why the Xactimate Water Damage Price List Matters

Xactimate is the standard estimating tool for insurance claims. Carriers, third-party administrators (TPAs), and restoration contractors all rely on its prebuilt line items and region-specific pricing to:

• Ensure fair market pricing for services

• Standardize scope reviews and approvals

• Document what was done and why

By using the Xactimate water damage price list, you show insurers that your estimate is justified and transparent—reducing the chance of pushback or underpayment.

Explore How to Streamline Back-Office Operations for additional tips on making your estimating workflow smoother and more accurate.

Common Water Damage Line Items in Xactimate

Water damage jobs vary, but most include the following categories:

1. Extraction and Drying

• WTR EXT: Water extraction, per square foot

• WTR DRY: Air movers (daily rental)

• WTR DEHUM: Dehumidifiers (LGR, desiccant, etc.)

• WTR MONITOR: Daily moisture checks

Accurately logging extraction and drying times helps validate job scope and support billing.

2. Demolition and Removal

• DEM DRYWAL: Remove wet drywall (per SF)

• DEM INSUL: Remove insulation

• DEM FLOOR: Remove laminate or carpet

• WTR CNTS: Containment setup (poly barriers)

Don’t forget to match material removal to the affected square footage logged during your site inspection.

3. Personal Protective Equipment (PPE)

• CLN PPE TYP: Tyvek suits

• CLN PPE GLOV / RESP: Gloves and respirators

These are crucial for Category 2 and 3 water jobs involving contaminants or sewage.

4. Disposal and Cleaning

• DEMDISP: Construction debris disposal (CUYD)

• CLN POST: Post-mitigation cleanup

• CLN DEOD: Deodorizing solution application

Explore How to Handle Admin Tasks Efficiently to ensure all billing steps—especially cleaning and disposal—are documented properly.

How Pricing Is Structured in Xactimate

Every item in the Xactimate water damage price list includes three key cost components:

1. Labor

Based on industry-standard time to complete the task. For example, removing wet drywall may be priced at $X.XX per square foot, factoring the time for setup, demo, cleanup, and technician wages.

2. Materials

Includes plastic sheeting, bags, tape, sealants, and cleaning solutions. These are built into many line items (e.g., containment setup includes both plastic and tape).

3. Equipment

Charged per day or hour. For example, a WTR DRY air mover may cost $25/day depending on your region and machine type.

Overhead & Profit (O&P)

Restoration contractors often apply 10% overhead and 10% profit to estimates. O&P is typically added if multiple trades are involved (e.g., demo, drying, build-back).

Explore How to Run a Small Business Profitably to learn how proper markup supports sustainable growth.

Tips for Building Accurate Water Damage Estimates

Accuracy begins with data. Follow these best practices:

1. Measure Everything

Use laser tape or software to calculate:

• Total affected square footage

• Wall height (to estimate drywall removal)

• Equipment placement areas

2. Document Class and Category of Water

Xactimate estimates must reflect the water type:

• Class 1–4 (how much moisture was absorbed)

• Category 1–3 (clean to grossly contaminated)

Example: Cat 3 water justifies PPE, double bagging, and antimicrobial use.

3. Include Supporting Documentation

Attach:

• Moisture logs

• Psychrometric readings

• Photos of demo areas and drying equipment in use

Explore How to Build Brand Trust With Customers to see how transparency also builds trust with insurers.

Mistakes to Avoid When Using the Water Damage Price List

Even seasoned professionals make estimating errors. Avoid:

1. Incorrect Equipment Counts or Timeframes

Only charge for equipment used. If air movers ran for 3 days, don’t bill for 5.

2. Skipping Containment or PPE

Many adjusters won’t suggest these—but if it’s part of the scope, include it. Be ready to show documentation.

3. Forgetting Disposal and Cleaning

Post-job cleaning, trash removal, and deodorization are commonly overlooked line items. These are billable.

Explore Guide to Hiring Back-Office Operations if you need help ensuring nothing gets missed during estimating or invoicing.

How to Download and Update Your Price List

Xactimate updates pricing monthly for accuracy. To download:

1. Open Xactimate desktop or online

2. Go to “Preferences > Price List”

3. Select your ZIP code region

4. Download the latest version

You can also compare historical price changes or access regional pricing reports via Xactware’s website.

Room-by-Room Estimating: Using the Xactimate Price List Effectively

Water damage rarely affects just one item—it affects entire rooms, surfaces, and systems. That’s why successful estimators think in zones or room groupings, not just task lists. With the right approach, the Xactimate water damage price list helps you map out damage by area and create logical, defensible estimates for any size loss.

In this section, we’ll explore how to use the price list room-by-room, handle real-life estimating challenges, and communicate value to clients and carriers alike.

1. Kitchen Water Damage Estimate Example

A supply line under a kitchen sink bursts overnight, flooding the cabinets, adjacent flooring, and baseboards.

Line Items to Include

• WTR EXT – Water extraction for 150 SF

• WTR DRY – Air mover, 3 units for 3 days

• WTR DEHUM – LGR dehumidifier, 1 unit for 3 days

• DEM BASE – Remove baseboards in kitchen

• DEM CAB – Remove wet cabinets (if unsalvageable)

• CLN POST – HEPA vacuuming and sanitization

• CLN ANTIM – Apply antimicrobial solution

• DEMDISP – Dispose of cabinet debris

Notes

• Apply WTR MONITOR to show daily moisture checks

• Add O&P if demo and drying are handled by different crews

• Include scope notes: “Cabinets were MDF and showed visible swelling after 10 hours of exposure”

This level of detail demonstrates professionalism and reduces adjuster revisions.

Explore How to Build Repeatable Business Systems for SOPs you can apply across similar job types.

2. Living Room Flood Scenario

A washing machine on the second floor leaks down into a ground-floor living room, affecting the ceiling, drywall, carpet, and furniture.

Line Items to Include

• WTR EXT – Water extraction, carpet and pad

• DEM DRYWAL – Remove ceiling drywall (wet and sagging)

• CLN DEOD – Apply deodorizer to carpet

• WTR CNTS – Containment to protect electronics

• WTR DRY – Air movers and wall injectors (if cavity drying needed)

• DEM INSUL – Remove insulation behind drywall

• CLN POST – Final cleanup post-dryout

• CLN PPE – If water is gray or black (Cat 2 or 3)

Bonus Tip

Use Room ID Tags in Xactimate to mark each space clearly. This simplifies room-by-room summaries and builds a clean scope trail for adjusters.

3. Basement Sewer Backup

A broken main line causes Category 3 water to back up into a finished basement with vinyl plank flooring and drywall up to 4 feet.

Key Estimate Elements

• WTR EXT CAT3 – Cat 3 extraction line item (higher rate)

• DEM FLOOR VNL – Remove vinyl plank flooring

• DEM DRYWAL – Flood cut drywall at 4 feet

• CLN ANTIM – Apply antimicrobial after all demo

• CLN PPE TYP / RESP – PPE charges for Category 3 work

• WTR MONITOR – Moisture readings daily

• CLN DEOD CAT3 – Odor control specifically for contaminated water

• DEMDISP CAT3 – Special disposal protocols for contaminated materials

Explore How to Build Your Dream Team to ensure your field and admin staff understand Category 3 protocol and billing.

4. Strategic Pricing: Estimator's Checklist

Here’s a quick checklist for pricing each water-damaged room:

✅ Use room-specific line items (e.g., bathroom baseboard vs. hallway carpet) ✅ Match square footage and quantities with sketch data ✅ Include drying timeframes (start/stop dates) ✅ Justify Category and Class of water ✅ Use Xactimate notes to clarify why a line item is needed ✅ Avoid lump-sum pricing (itemize everything) ✅ Attach photos with each room or estimate section

These steps reduce carrier pushback and streamline payments.

Communicating Water Damage Estimates to Clients

Customers want to know two things: What are you doing? and Why does it cost this much?

Here’s how to explain your Xactimate estimate in plain language:

• “We’re charging for each piece of equipment per day it’s used”

• “This includes labor to remove wet drywall and dispose of it properly”

• “We use standard insurance pricing so your carrier has no surprises”

• “This scope follows the Class 3/Cat 2 industry standard”

• “We’ll provide moisture logs and photos to validate each charge”

This positions you as a professional—not just a contractor, but a problem solver working with the insurer on the customer’s behalf.

Explore How to Build Brand Trust With Customers to ensure every client interaction reinforces your expertise.

Tracking Profitability With Xactimate Water Jobs

Use Xactimate reports to track:

• Cost vs. billed revenue per job

• Profit margin per equipment day

• Estimate approval timelines

• Jobs requiring revision vs. first-pass approval

This gives you data to adjust technician time, equipment usage, or markup as needed—especially helpful during high-volume CAT events.

Explore Virtual Assistant Services for Small Businesses to automate reporting and speed up claim processing.

Final Thought: Mastering the Price List = More Profits and Fewer Delays

Xactimate's water damage price list isn’t just a catalog—it’s your roadmap to reliable billing, fewer delays, and more predictable income. Learn it well, apply it consistently, and communicate it clearly. Your customers and your bottom line will thank you.

Using the Xactimate water damage price list correctly means:

• Faster estimate approvals

• More accurate payments

• Less back-and-forth with adjusters

By mastering this pricing model and combining it with photo documentation, moisture readings, and scope notes, you position your company as a professional and reliable partner in the insurance restoration ecosystem.

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Sources

• Xactware Pricing Data: https://www.xactware.com

• IICRC Water Damage Guidelines: https://www.iicrc.org

• EPA Water Damage Response Guide: https://www.epa.gov

• Contractor Connection Estimating Tools: https://www.contractorconnection.com