After a significant loss, it is common for the property owner to contact their insurance company and file a claim.
At that point, an adjuster will start accessing the damage and come up with a total for policyholder reimbursement.
Sometimes this is a fair amount.
And sometimes it needs a little more review.
So, how do insurance adjusters typically come up with this figure?
By using software called Xactimate.
What is Xactimate?
In this guide, we’ll help you learn more about what this specialized program does and why it is typically considered the gold standard in property claims.
Also, we’ll go over the reasons why all contractors need to be using this software for more accurate job bids and quotes.
Ready to get started?
What is Xactimate Used For?
Xactimate is a special type of software used by insurance professionals in estimating repair costs.
It was created by Insurance Service Offices (ISO), a division of Verisk Analytics that creates underwriting and risk calculation guidelines and tools for the insurance industry.
Most adjusters consider it the gold standard for the industry. It is commonly utilized in everything from commercial properties to residential homes.
When coming up with an exact figure for reimbursement, the adjuster inputs specific features about the building.
This can include different elements like the overall age of the building, type of shingles, and anything pertinent to what it would take to return the structure to pre-loss conditions.
You can almost think of it as a massive calculator that takes into account all the different elements of constructing a building.
Once the insurance adjuster has done their part, the system creates a settlement offer based on the program’s recommendations.
Often, this figure is what the property owner is offered to cover the claim.
How Contractors Can Use Xactimate
When it comes to accurately creating bids on insurance claims, Xactimate is a great tool for contractors.
Using Xactimate to create proposals and quotes gives you the advantage over just trusting the insurance adjusters.
It can also mean the difference between including specific line items and missing out on those things altogether.
And that means the ability to accurately and fairly increase your job quotes 20% to 30% each time.
The only downside?
There are tons and tons of nuances to using Xactimate.
It’s not always the most user-friendly platform and each general region is tailored to the area where the project is taking place.
That’s why QuikClaims is really every contractor’s new best friend.
We’re here to understand the different aspects and features of Xactimate to make quoting insurance jobs easier for contractors.
Do You Need Xactimate Training?
The answer is yes.
As we mentioned above…
Xactimate isn’t always user-friendly.
And there is sometimes a steep learning curve when it comes to getting all of the settings right and truly creating a comprehensive claims analysis within it.
Most quality commercial insurance companies including the bigger carriers spend thousands of dollars in training their claims reps.
Which is good news for property owners, to some extent.
But a competent adjuster should be able to look past what the software says and use common sense to come up with a comprehensive claim overview regarding the specific building in question.
When this is done, the settlement offer is usually quite fair and meets all standards for the made whole concept subscribed to by the insurance industry.
But that doesn’t mean they don’t miss certain line items or skip them to help keep costs down.
As a contractor, it is important to know all the varying features available to you to find those little areas where the adjuster might have missed something.
The biggest problem is you don’t have time to learn everything there is to know about Xactimate.
You’re far too busy taking care of clients and getting the job done right.
Which is why working with QuikClaims is such a no-brainer solution.
Our expertly trained team understands the various aspects to Xactimate and how to ensure you’re getting the best quote possible.
Potential Problems with Xactimate
Why is it so important for insurance claims adjusters and contractors to look past the Xactimate software when analyzing a loss?
Xactimate isn’t perfect.
It can even be quite wrong when it comes to certain situations.
The data the software uses is based on a region, but isn’t always as comprehensive as it needs to be.
It often misses some nuances that an insurance adjuster in a different area might miss…
But a local contractor would pick up on right away.
Like the true cost of labor within a given city or town.
Or additional costs associated with material shortages in specific areas of the country.
There are just far too many variables to consider.
To be truthful…
The only time it seems that Xactimate is spot on is when it is coming up with costs for a tract home in a neighborhood.
And others that don’t fall into this standard template are generally calculated wrong in Xactimate.
That’s why it is so important to work with a team like QuikClaims to really use Xactimate at a professional level.
Not only do we know the exact areas where Xactimate can miss certain nuances of a project, but we’re also experts and using it more accurately.
Let us handle the details, while you can focus on other aspects of the job.
What Happens If Xactimate Report Writing is Wrong?
The good news is that there is quite a bit of recourse if the initial Xactimate estimate is wrong.
In this scenario, the insurance adjuster would review what is called a supplement estimate.
Supplemental estimates are exactly what they sound like…
A supplemental addendum to the previous estimates.
In most claims scenarios, there can be two or three supplements before the end of the project.
This is usually caused by an adjuster not knowing the particular area of the structure well enough to create an exact estimate.
Or something as simple as a rise in costs between the initial insurance review and the actual start of repairs.
However, insurance companies aren’t always too keen on paying for supplements.
And that’s why it is important to have someone to review the first estimate and make changes based on need and knowledge.
Not only can our QuikClaims team assist with initial Xactimate estimate writing, but we can also assist with finding errors in the insurance claims version.
And help you come up with accurate supplementals, as necessary.
How QuikClaims Can Help
At QuikClaims, we understand the intricacies of dealing with insurance companies who use Xactimate software.
But we also take our added industry knowledge to help contractors ensure they’re getting fair compensation for repairs.
Furthermore, we also help with other parts of the process.
Like putting together supplemental claims to present to the insurance adjuster.
Our final reports are so thorough that we’re able to get them approved very quickly.
And often while increasing job value 20% to 30% accurately.
This is why so many consider us the foremost experts at Xactimate writing.
We work directly with contractors including roofing companies to help ensure these reports are as close to your needs as possible.
The end result is a property owner who gets a better settlement from their insurance carrier…
And the contractor is able to receive fair payment for all restoration work.
Consider it a win-win situation for everyone involved!
Wrap Up: What is Xactimate?
In short, Xactimate is insurance software that helps adjusters come up with appropriate figures for settlement amounts.
While it is considered the gold standard in insurance adjusting…
Contractors can also benefit from using it for more accurate repair estimates, too.
The end result?
Job bids that include certain line items that might be overlooked by the insurance adjusters.
And that’s where QuikClaims Xactimate writers can help save your contracting company time and money in the long run.
QuikClaims helps work between the adjusters and repair contractors by providing more accurate Xactimate reports and supplementals.