Xactimate pricing is always a hot-button topic among contractors, and if in that location is one thing people concord on, information technology'southward that labor and cloth costs are much lower than what they should be.

Some say it'due south intentional – lower prices reduce claim totals, which benefit insurance carriers. On the other paw, Xactimate surveys 20,000 local contractors each month, collects millions of marketplace data points, frequently publishes reports on their data, and routinely updates price points in their system. So what gives and more importantly, what tin you lot do about it if you encounter incorrect prices?

How & Why Xactimate Is Used

The first footstep is understanding how incorrect use of Xactimate volition lead to wrong pricing.

In an interview with Chip Merlin of Merlin Police Grouping on the importance of Xactimate Certifications, our VP of Operations, Andrew Behrens, mentions that the primary crusade of pricing problems is straight related to misconceptions about how to use Xactimate.

Watch this brusk prune to learn virtually Xactimate's pricing construction.

Click here to sentinel the full interview.

Xactimate is simply an estimating auto that breaks down the 10,000+ labor and materials associated with various types of claims into separate line items. Median market prices are used for each line detail to streamline the process. Co-ordinate to Xactimate, median market prices provide guidance on what is most common for that area. Prices are not the end-all-be-all.

Beneath is a screenshot from Xactimate with an explanation.

Xactimate has said that the user is responsible for making sure the prices are right. If they are not, it'due south the users' task to update them to the proper value. Careful attention should be "paid to prices charged by contractors and suppliers. Prices will vary based upon their visitor's size (overhead) and/or perceived quality of work and level of service."

Writing A Proper Estimate

Creating an accurate estimate requires two things: (1) accurate line items selected to reverberate the holding damage and (ii) correct pricing for those line items. If either one of those two variables (or both) is wrong, the approximate will also be. The brunt of proof to select the appropriate item and cost falls on the estimator who is using the program.

Contractors cull the correct line items only fail to update whatever of them with the proper pricing for the job. This leads to an estimate that is well below what it costs to do the task.

Updating Info Using "Open For Inspection"

Using the "Open for Inspection" tool in Xactimate allows users to "drill downwards" to view—and edit if they accept authorization— each line detail price in Xactimate.

Instructions on how to use this characteristic are hither .

Remember, just because yous tin can edit each price doesn't hateful you should. It would be best if you also substantiated price updates with authentic data.

Questions For Carrier Adjusters

We take heard from many contractors that entering valid pricing information is one-half the battle – getting carrier adjusters to have price increases can be a claiming. In most cases, the only fashion to practice this is to substantiate your claim with documentation. Xactimate provides this through screenshots or bulletins they have posted.

Our white papers can likewise exist sent to carriers to substantiate updates in Xactimate.

Overhead and Profit

Trade Labor Defaults

Calculating Waste Factors

If a carrier adjuster isn't accepting a valid cost increase and you lot have provided additional documentation, expect upwards the adjuster through Xactware'due south certification directory. This will help determine if they have the skillset to understand the information you accept provided.

Chances are they do not have the proper training or certification to utilise Xactimate. We recommend asking the adjuster to clarify their knowledge of the program or request a more skilled adjuster to review the claim.

Why Xactimate Certification Is Disquisitional

It used to be that roofers and contractors could be self-taught in the program and "get by" without formal training or completing the certification process. With states calculation additional regulations and limitations through UPPA laws, this is no longer the case. Contractors of all types must exist smarter than carrier adjusters and have the certifications to evidence it.

If you lot have to battle it out with carrier adjusters for proper payment, information technology is likely time for you to get certified.

C3's VP of Operations, Andrew Behrens, is ane of 48 Certified Xactimate Trainers in the country. He has developed a proprietary, self-paced virtual training platform to help with certification. Find out more here.