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Xactimate Estimating Software Explained: How It Works and Why It’s Essential

  • Writer: DM Monticello
    DM Monticello
  • Jul 3
  • 8 min read

What Is Xactimate Software?

Overview and History

Xactimate is a property estimating software used to calculate the cost of repairs and restoration work—especially after fire, water, storm, or other insurance-related damage. Developed by Xactware Solutions, now a part of Verisk, it has become the gold standard for insurance carriers, restoration contractors, and independent adjusters.

Launched in the 1980s, Xactimate has evolved from a desktop application into a fully integrated platform that includes:

  • A web version (Xactimate Online)

  • A mobile app for iOS and Android

  • Seamless cloud-based syncing



Who Created It

Xactimate was created by Xactware, a tech company focused on developing tools for property insurance estimating. The company is now owned by Verisk Analytics, which also provides services in data analytics, catastrophe modeling, and insurance claims management.

Verisk’s backing ensures that Xactimate stays compliant with industry standards and includes accurate pricing updates by location.



Who Uses It Today

Xactimate is used by:

  • Insurance adjusters to write damage estimates

  • Restoration contractors to bid jobs and submit invoices

  • Third-party estimators to work with both carriers and policyholders

  • Back-office support teams to organize documentation and assist with billing

If your business touches property claims, learning this software is nearly essential.

Want to support your field team more effectively? Read What Is Back Office Outsourcing.



What You Can Do with Xactimate Software

Create Detailed Estimates

At its core, Xactimate lets users:

  • Document property damage

  • Add labor and materials line by line

  • Create a complete estimate with costs and totals

Each estimate can include:

  • Room-by-room breakdowns

  • Structural elements (flooring, drywall, paint)

  • Specialty services (mold removal, pack-out, electrical)



Use Real-Time Pricing Data

One of Xactimate’s most powerful features is its regional price list database, which includes:

  • Labor rates

  • Material costs

  • Equipment pricing

This ensures that your estimates reflect market-accurate values for each ZIP code. Updates are released monthly, and you can access pricing history to compare seasonal shifts.

Explore how this works in Xactimate Price List: What It Is, How It Works, and How to Use It Right.



Add Sketches, Photos, and Notes

Xactimate allows users to draw property layouts using its built-in Sketch tool, which includes:

  • Drag-and-drop room shapes

  • Measurement integration

  • Automatic calculation of square footage

You can also upload:

  • Job photos

  • Moisture logs

  • Notes for each line item

These additions improve estimate clarity and help claims move through approval faster.

Need help organizing documentation? Check out How to Streamline Back-Office Operations.



Key Features That Make Xactimate Powerful

Regional Price Lists

Xactimate includes access to Verisk’s regional pricing databases, updated monthly. This ensures:

  • Accurate line item pricing based on ZIP code

  • Labor rates that reflect market trends

  • Transparency with insurance carriers

You can also customize pricing for specific projects, compare monthly price changes, and use the white pages for cost justification.

Learn how to master pricing with Xactimate White Pages Explained.



Cloud Sync and Mobile Access

Modern versions of Xactimate offer cloud-based syncing, allowing users to:

  • Start an estimate on a desktop

  • Update it on-site using a mobile device

  • Collaborate with team members in real time

This cross-platform access helps remote teams work faster and keeps data consistent across users.

Need mobile setup tips? Check out Xactimate Mobile Training.



Reporting and Compliance Tools

Xactimate includes:

  • Printable estimates in PDF and ESX formats

  • Carrier-specific report templates

  • Audit and version tracking

  • Compliance flags for missing or duplicate items

These tools are especially useful when dealing with adjusters or managing a multi-project workflow.



Xactimate Software Versions

Xactimate Online

Accessed via browser, Xactimate Online is ideal for:

  • Remote work

  • Temporary access

  • Lighter estimating jobs

It includes all major features like estimate creation, pricing lists, and sketching tools, though it has fewer custom functions than the desktop version.

Learn how to use it in Xactimate Online: A Beginner’s Guide.



Xactimate Desktop

Installed on Windows, this version is the most robust. It includes:

  • Full customization capabilities

  • Advanced macros

  • Bulk reporting tools

Desktop is preferred by high-volume estimators, large restoration firms, and CAT response teams.



Xactimate Mobile

This app version allows users to:

  • Upload job photos from the field

  • Take notes and measurements on-site

  • Sync projects instantly with the cloud

It’s perfect for inspectors and project managers who travel to job sites frequently.



Who Should Use Xactimate Software?

Insurance Adjusters

Whether working independently or for a carrier, adjusters use Xactimate to:

  • Document claims

  • Communicate repair costs

  • Ensure consistent standards across estimates

Training in Xactimate is often required for adjuster licensing and job eligibility.



Restoration Contractors

Contractors rely on Xactimate to:

  • Submit detailed, verifiable estimates

  • Get insurance approval quickly

  • Justify scope and pricing

It also helps bridge the gap between field work and office billing, especially when paired with structured workflows.

For streamlined operations, see What Is Back Office Outsourcing.



Independent Estimators

Freelance estimators use Xactimate to:

  • Provide estimates for both homeowners and contractors

  • Help clients negotiate claims

  • Manage estimate approvals and revisions

This makes the software a core part of their service offering.



Pros and Cons of Xactimate

Why It’s the Industry Standard

  • Widely accepted by insurers

  • Updated regional pricing

  • Comprehensive tools for sketching, estimating, and reporting



Where It Can Be Challenging

  • Steep learning curve for new users

  • Software cost may be high for small teams

  • Best features limited to desktop version

Looking to accelerate learning? See Xactimate Training: How to Learn Estimating Fast.



When It’s Worth the Investment

If you:

  • Submit 10+ estimates/month

  • Work in insurance-backed repairs

  • Need consistency across a team

…then Xactimate will pay for itself by improving speed, accuracy, and approval rates.



How to Learn Xactimate Software

Free Tutorials and Training Tools

  • Xactware’s YouTube channel

  • Webinars and live sessions

  • In-app tutorials and documentation



Certification Paths

Xactimate offers Level 1 (Fundamentals), Level 2 (Proficiency), and Level 3 (Mastery) certifications. These are valuable for professionals looking to:

  • Prove their skills

  • Get hired by carriers

  • Charge more for their services



Tips for Mastering It Quickly

  • Start with small estimates and build up

  • Focus on one tool at a time (e.g., Sketch, then Line Items)

  • Use templates and macros to save time

Learn to structure learning in How to Build Your Dream Team.



How to Set Up Xactimate Software for Your Business Workflow

Getting started with Xactimate software is more than just logging in—it’s about aligning the tool with your daily operations. A solid setup streamlines estimating, improves team collaboration, and shortens the path from inspection to payment. Whether you're a solo adjuster, a growing restoration team, or managing multiple branches, here’s how to configure Xactimate to fit your business workflow.



Step 1: Choose the Right Xactimate Version

Your workflow will determine which version of Xactimate is best:

  • Xactimate Desktop is ideal for:

    • Full-time estimators

    • Large-scale jobs

    • Custom macros and templates

    • Offline access and bulk tools

  • Xactimate Online is perfect for:

    • Remote teams

    • Part-time users

    • Contractors who need access from shared devices

  • Xactimate Mobile works best for:

    • Field inspectors

    • Project managers

    • On-site photo and note capture

Most companies benefit from using a combination of all three, ensuring estimates flow from job site to office without duplication.

Need a full comparison? See Xactimate Online: A Beginner’s Guide.



Step 2: Set Up User Profiles and Roles

Each team member should have their own login and role. Inside the Xactimate Control Center, you can:

  • Create new users

  • Assign licenses

  • Set profile types (Admin, Estimator, Reviewer)

This setup prevents errors, enables accountability, and allows for team collaboration. Avoid shared logins—they risk estimate loss and audit confusion.

Want to build a smart ops team? Read How to Build Your Dream Team.



Step 3: Customize Your Company Profile

Your company profile controls branding, contact info, and estimate settings. You should:

  • Upload your logo and license number

  • Set your default region and price list

  • Choose how estimates are exported (PDF or ESX)

This keeps all jobs professional and consistent. You can also store contractor notes or unique labor rates under profile settings.



Step 4: Create Estimate Templates

Estimate templates save time and reduce mistakes. You can create templates for:

  • Water mitigation

  • Roof replacement

  • Fire damage cleanup

Each template should include:

  • Common line items

  • Standard room layouts

  • Scope note structures

Templates are especially helpful when onboarding new hires or scaling to more jobs per week.

Learn to automate more with How to Automate Back-Office Operations.



Step 5: Build Macros for Common Scenarios

Macros are groups of line items that can be dropped into an estimate instantly. For example:

  • “Dryout Set-Up” macro with 2 air movers, 1 dehu, moisture readings, and containment

  • “Roof Tarp” macro with labor, materials, and photo upload notes

Over time, macros become a library of shortcuts that make estimating 30–50% faster.

Need to train your team fast? Explore Xactimate Training.



Step 6: Enable Cloud Syncing

To support team collaboration and data backup:

  • Use the cloud sync feature in Online/Desktop

  • Connect field users via Xactimate Mobile

  • Schedule weekly backups of all projects

This ensures that if one user leaves or a device crashes, no estimate is lost.



Step 7: Set Up Job Folders by Stage

Create folders inside Xactimate to organize by:

  • “New Inspections”

  • “In Progress”

  • “Ready for Approval”

  • “Completed and Archived”

This makes it easier to track where each claim stands and allows your office team to support follow-ups.

Want a smoother claims pipeline? Check out How Operational Efficiency Drives Sales Growth.



Step 8: Link Your Estimate Workflow to Your Admin Tools

Integrate Xactimate with your:

  • CRM (JobNimbus, Salesforce, etc.)

  • Photo storage (Company Google Drive or Dropbox)

  • Accounting tools (QuickBooks, Xero)

While Xactimate doesn’t directly sync with most admin tools, using job numbers, custom file names, and folders keeps your estimate pipeline structured and auditable.



Step 9: Assign Internal Review and QA Checkpoints

Before submitting an estimate to a carrier, build a checklist:

  • Are all rooms sketched?

  • Are supporting photos attached?

  • Are justification notes present for nonstandard line items?

Have an admin or team lead review all estimates before final submission. This avoids carrier rejections and speeds up payment.

If you want to build this into a repeatable process, explore Top 10 Tech Tools for Back Office Teams.



Step 10: Document Everything in SOPs

As your setup gets more sophisticated, save it in a written Standard Operating Procedure (SOP) that includes:

  • Login steps

  • Folder structures

  • Naming conventions

  • Estimate checklists

This helps you:

  • Train new hires

  • Maintain consistency

  • Improve efficiency

And if you ever bring in outside help (like a virtual assistant or subcontractor), they can follow your process without needing hands-on coaching.

Need help documenting? Learn how in Virtual Assistant Rates Explained.



A Smart Setup Pays for Itself

Most companies lose time not from bad estimates, but from messy systems. With a structured Xactimate setup, you:

  • Reduce errors and rework

  • Speed up training

  • Win approval from carriers faster

Set it up once, document it well, and train your team to follow it. Want help building it? Visit operationsarmy.com to see how our AI-powered back-office teams can structure, manage, and improve your entire estimating pipeline.



Final Thoughts: Should You Use Xactimate?

If you’re involved in insurance claims, property restoration, or estimating, Xactimate isn’t optional—it’s essential. It may take time to master, but once integrated into your operations, it streamlines estimating, speeds up approvals, and supports scalable growth.

For support setting up Xactimate or building training systems around it, OpsArmy is here to help.



OpsArmy Can Help

OpsArmy is building AI-native back office operations as a service (OaaS). We help businesses run their day-to-day operations with AI-augmented teams, delivering outcomes across sales, admin, finance, and hiring. In a world where every team is expected to do more with less, OpsArmy provides fully managed “Ops Pods” that blend deep knowledge experts, structured playbooks, and AI copilots. Think of us as your operational infrastructure: running faster, leaner, and smarter business execution. 

👉 Visit operationsarmy.com to learn more.



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