Xactimate Overview: A Beginner’s Guide for Insurance Adjusters and Contractors
- DM Monticello
- Jul 3
- 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:
Open a new project and enter property details
Select the correct price list based on ZIP code
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:
Sketch Tool: You sketch the affected rooms (bathroom, hallway, living room) using exact measurements.
Line Items: You add items such as “Remove wet carpet and pad,” “Extract water,” “Install air movers,” and “Daily moisture monitoring.”
Price List: You select the appropriate regional price list for labor, equipment, and material.
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.
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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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Sources
Verisk Xactimate Overview – https://www.verisk.com/insurance/products/xactimate/
IICRC Estimating Guidance – https://www.iicrc.org
RIA Estimating Best Practices – https://www.restorationindustry.org
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