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Xactimate Overview: A Beginner’s Guide for Insurance Adjusters and Contractors

  • Writer: DM Monticello
    DM Monticello
  • 4 days ago
  • 8 min read

Xactimate Explained in Simple Terms

What the Software Does

Xactimate is a powerful estimating software used to create detailed, accurate repair and restoration estimates—especially after property damage caused by fire, water, wind, or hail. It’s designed to help professionals:

  • Build digital sketches of damaged areas

  • Add line items (tasks, materials, and labor)

  • Calculate costs based on location-specific pricing

  • Submit estimates to insurance companies for claim approval

Think of it as the go-to platform for anyone writing repair estimates in the insurance world.



Who Uses It

Xactimate is widely used by:

  • Insurance adjusters: to assess damage and calculate payouts

  • Restoration contractors: to create scope of work and bill for services

  • Public adjusters: to advocate for property owners in claim negotiations

  • Inspectors and consultants: to document damages and forecast repair costs

The platform is the common language between contractors and insurers—so using it right means smoother communication and faster payments.

Want to improve your operations like the pros? Read How to Streamline Back-Office Operations.



Why It’s the Industry Standard

Xactimate has become the industry standard because:

  • It’s accepted by nearly every major insurance carrier

  • It includes monthly price updates for regions across the U.S.

  • It offers tools for creating highly detailed, line-by-line estimates

  • It reduces claim disputes by standardizing documentation

In many areas of restoration and claims adjustment, if you’re not using Xactimate, you’re falling behind.

Need help hiring Xactimate-trained talent? Read How to Hire Top Talent Without Breaking the Bank.



How Xactimate Works

Creating a New Estimate

When you launch Xactimate, the first step is to:

  1. Open a new project and enter property details

  2. Select the correct price list based on ZIP code

  3. Add the rooms and building components using the Sketch tool

This sets up the digital blueprint of your job.



Adding Sketches, Line Items, and Photos

Next, you’ll draw rooms to scale and add details like windows, doors, and cabinets. Then you assign line items—each representing a task or material (e.g., remove carpet, install drywall, paint ceiling). You can also upload photos, add notes, and document moisture readings or drying logs.

Explore more on drying documentation in Xactimate Drying Logs for Water Damage (PDF Guide).



Generating a Complete Scope of Work

Once everything is input, Xactimate generates:

  • A full estimate summary

  • Detailed room-by-room breakdowns

  • Pricing based on local rates

  • Ready-to-submit PDF and ESX files for carriers

These files help insurance companies process claims faster and give contractors confidence that they’ll get paid correctly.

Want to streamline how you manage documents? Check out Top 10 Tech Tools for Back Office Teams.



Key Features and Tools in Xactimate

The Price List System

One of the most powerful features of Xactimate is its price list database. Updated monthly, this system provides:

  • Labor, material, and equipment costs

  • Regional adjustments by ZIP code

  • Standardized pricing used by insurers

The price list ensures that every estimate is fair and accurate based on market conditions. This helps reduce negotiation time and increases approval speed.

Dive deeper in Xactimate Price List: What It Is, How It Works, and How to Use It Right.



Sketch Tool for Room Layouts

The Sketch tool allows users to:

  • Draw rooms and structures to scale

  • Add windows, doors, appliances, and fixtures

  • Place items accurately for line item costing

Sketches not only improve estimate clarity but also help insurers visualize the damage, making claims more likely to be approved on the first submission.



Integration with Mobile and Cloud

With Xactimate Mobile and cloud syncing:

  • Field teams can collect data on-site

  • Office teams can edit and finalize estimates remotely

  • Projects stay updated in real time

This seamless integration speeds up the process and allows for collaboration across locations.

Learn more about mobile tools in Xactimate Mobile Training.



Who Should Use Xactimate and Why

Insurance Adjusters

Adjusters use Xactimate to:

  • Assess property damage

  • Justify claim payouts

  • Stay aligned with policy limits and carrier expectations

It helps them avoid guesswork and create defensible estimates that stand up in audits.



Restoration Contractors

Contractors rely on Xactimate for:

  • Estimating labor and materials accurately

  • Billing insurance for completed repairs

  • Getting estimates approved quickly

In short, it ensures they get paid for every task performed.

Need to improve billing? Read How to File Taxes as a Small Business.



Home Inspectors and Public Adjusters

These professionals use Xactimate to:

  • Support homeowners during disputes

  • Offer second opinions

  • Submit counter estimates when insurance offers fall short

It equips them with the same tools used by insurers, creating a level playing field.



Pros and Cons of Xactimate

What Makes It So Powerful

  • Industry-standard acceptance

  • Detailed and customizable estimates

  • Integration with photos and drying logs

  • Fast file sharing via ESX or PDF

This level of functionality makes it a must-have for serious professionals.



Common Complaints

  • Steep learning curve

  • Subscription costs

  • Complexity for small jobs

But with training and consistent use, most users find the benefits outweigh the challenges.



When It’s Worth Learning

If you:

  • Work with insurance claims

  • Want to reduce payment delays

  • Need consistent, professional estimates

...then learning Xactimate is well worth the investment.

For help building a skilled team, see How to Build Your Dream Team.



How to Learn Xactimate Fast

Online Courses vs. In-Person Training

  • Online courses are flexible and great for self-paced learners

  • In-person training offers hands-on help and quicker feedback

Choose based on your schedule, learning style, and urgency.

Compare options in Xactimate Training In Person.



Practice Estimates and Certification

The best way to learn? Practice. Start by creating mock estimates and work toward your Level 1 or Level 2 Xactimate Certification.



Using Templates and Shortcuts

Speed up the process by:

  • Creating custom macros and templates

  • Using keyboard shortcuts

  • Copying common estimate types

These time-savers make you more efficient and accurate.



Real-World Applications of Xactimate in Property Restoration

Understanding what Xactimate is becomes far more powerful when you see how it’s applied in the real world. From water damage and fire recovery to storm claims and large-loss projects, Xactimate plays a central role in documenting, justifying, and getting paid for restoration work.

Let’s break down how restoration contractors and adjusters use Xactimate to navigate common job types, impress insurance carriers, and speed up payment cycles.



Scenario 1: Water Damage from a Burst Pipe

Imagine a winter freeze causes a pipe to burst in a two-story home. The property owner calls your restoration team, and you arrive to find:

  • Wet carpets

  • Soaked drywall

  • Swollen baseboards

  • Elevated humidity throughout the house

Here’s how Xactimate comes into play:

  1. Sketch Tool: You sketch the affected rooms (bathroom, hallway, living room) using exact measurements.

  2. Line Items: You add items such as “Remove wet carpet and pad,” “Extract water,” “Install air movers,” and “Daily moisture monitoring.”

  3. Price List: You select the appropriate regional price list for labor, equipment, and material.

  4. Drying Logs: You document moisture levels daily and upload the logs as PDF files.

Result? Your estimate reflects the full scope of mitigation, and the insurance carrier has no issue approving payment.

For more on drying documentation, read Xactimate Drying Logs for Water Damage PDF Guide.



Scenario 2: Fire and Smoke Damage in a Kitchen

After a grease fire in a rental property, your team is called to assess damage. Smoke has traveled into other rooms, requiring deodorization and cleaning.

In Xactimate, you:

  • Create zones for the kitchen and adjacent rooms

  • Add line items like “Remove charred cabinets,” “HEPA vacuuming,” and “Thermal fogging”

  • Use before/after photos to support the scope

  • Note which items are restorable vs. total loss

Because everything is documented in industry-accepted language, the adjuster reviewing your estimate is able to approve it quickly—often without revisions.

Want to improve documentation quality? Learn How to Maximize My Team’s Productivity.



Scenario 3: Hailstorm Roof Replacement

A large hailstorm hits your area and damages hundreds of roofs. You’re contracted to inspect and estimate repairs for a dozen properties. Here’s where Xactimate shines:

  • You create a template estimate for asphalt shingle replacement

  • Each new job uses the same base estimate but customized per property

  • You upload drone images and use line items for tear-off, disposal, and replacement

You use the price list for your city and document higher-than-usual shingle costs due to supply shortages. With this data in Xactimate and supported by invoices, carriers quickly approve your bid—even during a high-volume CAT event.

Learn how to manage high volume with How Operational Efficiency Drives Sales Growth.



Scenario 4: Mold Remediation After Long-Term Leak

A long-undetected leak in a basement leads to mold behind walls and under flooring. The homeowner is concerned about safety, and the insurer wants full documentation before approving remediation.

In your Xactimate estimate, you include:

  • Moisture testing results

  • Detailed sketches with containment zones

  • Line items like “Build containment,” “Negative air machine setup,” “HEPA cleaning,” and “Post-remediation testing”

You also attach a lab report showing spore counts before and after cleaning. The insurer accepts your detailed scope and issues payment within a week.

Need support setting up recurring tasks like report uploads? Explore Virtual Assistant Rates Explained.



Scenario 5: Large Loss on a Commercial Property

After a warehouse experiences fire and water damage from a sprinkler discharge, the estimate exceeds $250,000. You’re working with multiple subs, engineers, and a forensic consultant.

Xactimate helps you:

  • Divide the estimate by area (office, production, storage)

  • Add thousands of dollars in drying equipment and demolition

  • Include engineer reports and subcontractor bids as attachments

Because your estimate is broken into logical sections with strong documentation, it earns approval after only one round of revisions.

Looking to scale operations for big jobs? Read What Is Back Office Outsourcing and Why Companies Should Consider It.



Lessons Learned from These Scenarios

From these five real-world cases, a few patterns emerge:

  • Documentation matters: The more evidence you provide (photos, logs, reports), the faster you get paid.

  • Templates save time: Xactimate allows you to build reusable estimate formats for frequent job types.

  • Line item accuracy builds trust: Avoid generic pricing. Tailor every line item to the job and region.

  • Carrier expectations are met through consistency: When your estimates follow the Xactimate standard, they’re easier to review and harder to dispute.



Final Word: Use Xactimate Like a Pro

If you're involved in property restoration, insurance adjustment, or damage inspection, Xactimate is essential. It helps you produce professional, accurate, and carrier-approved estimates that get you paid faster and more reliably.

Looking to scale your business with better back-office support? Explore What Is Back Office Outsourcing and Why Companies Should Consider It.

Whether you’re a solo contractor, team leader, or part of a large restoration firm, Xactimate is your key to working smarter—not harder. These real-world examples show how the software applies to almost every scenario you’ll face in the field.

By mastering it, you streamline operations, improve cash flow, and earn a reputation for professionalism in a highly competitive industry.

Want help building a skilled estimating team? Check out How to Build Your Dream Team.



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