Suspicious Unit Pricing

4 carrier pricing tactics. FLMI database test. Contractor quote test. Build the line-by-line rebuttal.

What you'll learn

The 4 ways carriers underprice line items. How to compare against the FLMI database. The contractor quote test. Why "we use Xactimate too" is your strongest counter-argument.

6.3.1 Why pricing matters separately from scope

Even if scope is complete, the carrier can shrink the claim by underpricing each line.

A 200 sqft tile floor R&R:

Carrier price: $9.00/sf × 200 = $1,800
Real FL market price: $14.00/sf × 200 = $2,800
Difference: $1,000 on one line

Multiply across 30 lines and you've got $20K+ left on the table from pricing alone.

6.3.2 The 4 carrier pricing tactics

Tactic 1 — Suppressed unit prices

Each Xactimate line has a base unit price from the FLMI database (or whichever regional code applies). Adjusters can override the price.

Common pattern: estimate uses prices 15-30% below the database default. The summary still shows "Xactimate" — but the prices are manually lowered.

Detect it: compare line items to current FLMI averages. Any line materially below = suspect.

Tactic 2 — Lower-grade material assumptions

The line description says "drywall — hung, taped, swirl texture." But your home has knockdown texture (different code, higher price).

Or: line says "Builder grade tile — R&R." But your home has porcelain or natural stone.

Detect it: match the line description to actual materials in your home. Different material = different code = different (usually higher) price.

Tactic 3 — "Repair" instead of "R&R"

Same scope, two prices:

Repair (R) — patch + texture + paint = ~$2.50/sf (stays low)
Remove and Replace (R&R) — full demolition + new drywall + texture + paint = ~$5/sf

For water-damaged drywall, R&R is industry standard (per IICRC S500). Carrier may use "repair" pricing to suppress the line.

Detect it: any line with "repair" prefix on water-damaged drywall, ceiling, or insulation = challenge.

Tactic 4 — Stripped time-and-material lines

Specialized work (mold remediation, fire restoration, structural drying) has high unit prices. Some carriers strip these into smaller, lower-priced lines.

Example:

Real cost: mold remediation Level 2 — $4-$8 per sqft (containment, PPE, antimicrobial, disposal, post-remediation testing)
Stripped estimate: "antimicrobial application" — $0.65 per sqft

Detect: when work is highly specialized (mold, fire), carrier estimate should reflect IICRC-protocol pricing, not generic cleaning.

6.3.3 The FLMI test

For South Florida, the relevant Xactimate database is FLMI (FL — Miami). For other FL regions: FLOR (Orlando), FLTA (Tampa), etc.

The database publishes average prices for each line item code, updated monthly.

Public access

Xactware (Verisk) publishes some pricing data publicly at xactware.com → Pricing Resources. You can look up:

The FLMI average for a specific code
Recent price trends
Material vs labor split

Limitation: full database access requires subscription ($200/month). Most homeowners don't have it.

Workarounds

Public adjuster — has the database
Restoration contractor — typically has access for billing
Industry pricing reports — RSMeans, Craftsman publish similar pricing
Recent comparable claims — if you've worked with anyone who got the carrier's estimate on a similar loss

If the carrier's price is materially below all of these — rebuttal point.

6.3.4 The contractor quote test

The fastest, cleanest rebuttal: independent contractor quote.

How to do it

Get at least 2 quotes from licensed FL contractors who do insurance work
Use the same scope (your Module 5.1 spreadsheet) — apples-to-apples
Quotes should be itemized in Xactimate format (or close to it)
Compare line-by-line to carrier estimate

What contractors will charge

Same line item, multiple sources:

Line item	FLMI avg	Carrier estimate	Contractor 1	Contractor 2
Drywall R&R 1/2" (per sf)	$3.80	$2.50	$4.20	$3.95
Tile R&R porcelain (per sf)	$13.00	$9.00	$14.50	$13.25
Paint walls + ceiling (per sf)	$0.95	$0.65	$1.05	$0.90

In this example: carrier estimate is materially below every reference point. Strong rebuttal.

6.3.5 Building the pricing rebuttal

For each suspicious line, your rebuttal includes:

Line item: Drywall R&R 1/2"  (Code: DRY1/2)
Carrier unit price: $2.50/sf
Quantity: 152 sf
Carrier total: $380.00

Comparable pricing:
- FLMI database average (Q1 2025): $3.80/sf
- Contractor 1 (licensed FL GC, 2 quotes): $4.20/sf
- Contractor 2 (licensed FL GC, 2 quotes): $3.95/sf
- Industry standard (RSMeans 2025): $3.85/sf

Reasonable unit price: $3.85/sf (FLMI + RSMeans average)
Corrected total: $585.20
Difference: $205.20

Supporting documentation:
- Contractor quotes (Exhibits A, B)
- FLMI database screenshot (Exhibit C)

Repeat for every materially underpriced line. Total it. That's your pricing rebuttal.

6.3.6 The "you use Xactimate too" counter

Carriers sometimes argue: "Our pricing is from Xactimate — it's industry standard."

Counter: Xactimate publishes default pricing, but adjusters can override. Your job is to demonstrate the carrier overrode below-market.

The contractor quotes, the FLMI database lookups, the industry pricing references — all show what the database default actually is. The carrier's manually-suppressed price is the deviation, not the market.

This is one of the most effective rebuttal arguments. The carrier knows their adjusters override pricing. Putting a documentation trail on it forces them to either justify the override (rare) or pay closer to market (common).

6.3.7 Common pricing disputes + counters

"Our pricing reflects regional FL market."

Counter: contractor quotes from licensed FL contractors in same market. Database screenshots. Multiple data points.

"You hired a high-end contractor."

Counter: 2+ independent quotes from contractors of comparable quality + similar pricing.

"That price includes work you didn't need."

Counter: scope-specific breakdown. Each line itemized. No bundled markup.

"We can use our preferred contractor at lower price."

Counter: you have the right to use your own contractor (subject to limited "managed repair" provisions in some policies). If forced into managed repair, verify the policy explicitly requires it.

6.3.8 Where pricing arguments are strongest

Situation	Why pricing rebuttal works
Highly specialized work (mold, fire, structural)	Industry standards (IICRC, RSMeans) clearly publish higher pricing
Common materials w/ public pricing (tile, drywall, paint)	Easy to compare to retail + contractor quotes
Catastrophe events (post-hurricane)	Surge pricing well-documented; carrier estimates often pre-surge
Older homes w/ specialty materials	Match-quality requirements push pricing higher

Where pricing arguments are weaker

Standard line items where carrier pricing is reasonable
Regions with low cost variance
Claims where carrier already paid above-market (rare but happens)

6.3.9 Action steps

After scope rebuttal (6.2), do pricing rebuttal as a separate document.
Get 2+ contractor quotes in Xactimate format.
Look up FLMI averages for materially low lines.
Build line-by-line comparison spreadsheet.
Submit pricing rebuttal as supplement to scope rebuttal.

Next: 6.4 Improper Depreciation.

Educational. Not legal advice. Pricing data references industry sources (Xactimate FLMI, RSMeans, Craftsman) that update periodically. Specific pricing depends on regional and temporal factors.