Ch 5 · Documenting and Pricing the Loss
Module 5.2
Xactimate Basics for Homeowners
Read the carrier's estimate like an adjuster does. The 4 numbers per line. FLMI pricing. 7 lowball signals.
12 min read
What you'll learn
The estimating software the carrier uses. How to read it. The 4 numbers that matter on every line. The pricing database (FLMI). How to spot a lowball.
5.2.1 What Xactimate is
Xactimate = the dominant property insurance estimating software in the US. Made by Verisk Analytics.
Used by:
- Carrier adjusters (writing claim estimates)
- Public adjusters (writing rebuttals)
- Restoration contractors (billing claims)
- Independent adjusters (CAT events)
If you can't read an Xactimate document, you can't audit your own claim.
5.2.2 What an Xactimate estimate looks like
A typical Xactimate document has 3 main parts:
| Part | What's there |
|---|---|
| Cover page | Claim #, policyholder, property, dates, summary totals |
| Sketch | A floorplan diagram with rooms numbered/lettered |
| Line items | Tables showing each line of work, by room, with pricing |
The line items are where the action is.
5.2.3 The 4 numbers on every line item
Each line in an Xactimate estimate has the same fields:
| Field | What it means | What to check |
|---|---|---|
| Description | What work is being done (e.g., "DRY1/2 — 1/2" drywall — hung, taped, w/ swirl texture") | Right scope? |
| Quantity | How much (sq ft, linear ft, each) | Realistic measurement? |
| Unit price | $/unit (e.g., $3.42/sqft drywall) | Reasonable for FL market? |
| Total | Quantity × unit price | Math correct? |
Example line:
DRY1/2 | 1/2" drywall — hung, taped, swirl texture | 152 sqft | $3.42 | $519.84
Plus columns for depreciation (showing ACV vs RCV split) and any deductions.
5.2.4 The pricing database — FLMI
Xactimate prices come from a regional database updated periodically. For South Florida–Miami, the database code is FLMI.
Every line item references a specific code (DRY1/2, PNT-S, BB-MD, etc.). The price for that code is pulled from the database for the current month.
Why this matters:
- Carrier's adjuster can override pricing line-by-line. Lowballed unit prices = a flag.
- The database updates monthly. An estimate written 6 months ago has stale pricing.
- Different regional databases have different prices (FLMI ≠ FLOR ≠ FLTA).
You can verify the carrier's pricing by:
- Comparing to your contractor's actual quotes
- Comparing to Xactware's published average pricing (limited public access)
- Looking at the same line items on prior claims
If the carrier's unit price is materially below your contractor's quote, that's a rebuttal point.
5.2.5 Common line item codes
A quick decoder for the most common codes you'll see:
| Code | What |
|---|---|
| DRY1/2 / DRY5/8 | Drywall, 1/2" or 5/8" thickness |
| PNT-S / PNT-W | Paint — surface or wall (often per coat) |
| BB-MD / BB-LG | Baseboard — medium or large |
| TILE | Tile flooring (multiple sub-codes by size) |
| CARPET | Carpet (multiple sub-codes by grade) |
| FAN-CL | Ceiling fan — clean or replace |
| R&R prefix | Remove and Replace |
| CLN prefix | Clean (no removal) |
| DEMO | Demolition |
| HM-LG | Haul materials (large) |
| PLBR | Plumber labor |
| ELEC | Electrician labor |
| GC-OH / GC-PRF | General contractor overhead / profit |
Full code reference at xactware.com/learning. Bookmark it.
5.2.6 The summary totals
Cover page typically shows:
| Line | What |
|---|---|
| Sub-Total | Total of all line items, before adjustments |
| Overhead | Often 10% (general contractor overhead) |
| Profit | Often 10% (general contractor profit) |
| Sales Tax | FL 6% + county (varies) |
| Total | Sub-total + O&H + Profit + Tax = full repair cost |
| Less Depreciation | Withheld depreciation (ACV adjustments) |
| Less Deductible | Your AOP or hurricane deductible |
| Net Claim | What carrier will pay first (ACV check) |
The Net Claim is the first check. Recoverable depreciation comes later (Module 2.5).
5.2.7 The 7 lowball signals to spot
When you read the carrier's Xactimate, these are the patterns that mean "rebuttal needed":
1. Missing line items
Compare the carrier's line items to your scope (Module 5.1). Anything in your scope, missing from their estimate? Add to rebuttal.
2. Suspiciously low unit prices
Your contractor's per-sqft tile price is $9. Carrier's is $5. Why? Database pricing should be close. Big gaps = override.
3. Quantity discrepancies
Carrier says 80 sqft of drywall. You measure 120. Photograph + measure → rebuttal.
4. No O&P (Overhead and Profit)
If 3+ trades are involved, GC O&P (20% total) is industry standard. If carrier left it off — push back.
5. Excessive depreciation
Look at the ACV column. If the carrier depreciated labor (often shouldn't be depreciated), or applied excessive % depreciation — push back.
6. Wrong materials grade
Estimate calls for "builder grade" tile when your home has porcelain. "Builder grade" cabinets when yours are solid wood. Match-quality issue.
7. Missing categories
No mitigation line. No code upgrade line. No matching statute application. No content damage. Each missing category = thousands in lost recovery.
5.2.8 Reading the sketch
The sketch is a floorplan diagram with rooms labeled. Each room links to its line items.
What to verify:
- All affected rooms are sketched
- Room dimensions match reality (measure!)
- Line items in each room match the scope
- Adjacent rooms (where damage migrated) included
Common issue: carrier sketches only the obvious damaged room and ignores adjacent rooms with moisture migration.
5.2.9 Tools to help homeowners read Xactimate
You don't need to own Xactimate to read it (the software is expensive — $200/month subscription). But:
| Tool | Use |
|---|---|
| Public adjuster | Has Xactimate + experience reading carrier estimates |
| Restoration contractor | Often has Xactimate for billing |
| Xactimate Code Reference at xactware.com | Free public database to look up codes |
| Xactimate Mobile (limited free version) | View estimates without writing |
| PDF reader + spreadsheet | Most carrier Xactimate exports are PDFs; convert to spreadsheet for line-item comparison |
5.2.10 Action steps
- When you receive the carrier's estimate, request the full Xactimate detail (sketch + line items), not just the summary.
- Print or open it side-by-side w/ your scope (Module 5.1).
- Mark every missing or under-quantified line.
- Compare unit prices to your contractor's quotes line-by-line.
- Build your rebuttal list — this becomes Module 6.6 (writing the rebuttal).
Next: 5.3 Photo Standards.
Educational. Not legal advice. Xactimate is a proprietary product of Verisk Analytics. Pricing databases and code descriptions are subject to ongoing updates.