TL;DR: Xactimate is used by over 80% of insurance carriers in North America. Mastering it means faster approvals, fewer supplements, and getting paid 20-30 days faster than competitors. Choose XactAnalysis Mobile ($85/month) for water damage or XactNet ($155/month) for full-service restoration with reconstruction.
Table of Contents
- Why Xactimate Dominates Insurance Restoration
- Xactimate Subscription Tiers: What You Actually Need
- Understanding Xactimate Pricing: RCV vs. ACV
- Essential Xactimate Line Items Restoration Companies Miss
- Does Xactimate Support Insurance Carrier Integration and Standardized Estimate Reporting?
- Advanced Drying Systems vs. Competitors for Xactimate Reporting
- Quick Recap
- Frequently Asked Questions
Why Xactimate Dominates Insurance Restoration
Xactimate is the standard estimating platform because insurance companies standardized on it, making claims processing faster and more consistent across the industry. When everyone uses the same platform with the same pricing database, adjusters can compare your line items instantly against their own pricing databases.
Xactware launched Xactimate in 1986 as property claims estimating software. Nearly 40 years later, it controls the market because insurance companies need standardization. Before Xactimate, contractors submitted wildly varying estimates for identical work. One contractor bills $800 for demo and removal of water-damaged drywall in a 10 by 12 bedroom. Another bills $1,400 for the same scope. Adjusters spent hours researching which estimate reflected fair market pricing.
When you submit handwritten estimates or use generic contractor software, you’re asking adjusters to manually translate your work into their system, which slows payment cycles by 20-40 days and increases dispute rates by 35%.
Xactimate’s pricing database updates monthly with localized costs for every ZIP code in North America. Labor rates, material costs, and equipment pricing reflect regional variations. Drywall installation costs more in San Francisco than Omaha because of higher labor and material expenses. The database includes over 40,000 line items covering every conceivable restoration and reconstruction task.
According to the Property Loss Research Bureau, insurance companies using Xactimate reduce claim cycle times by an average of 35% and dispute rates by 28% compared to those accepting non-standardized estimates. These efficiency gains saved the industry an estimated $2.1 billion in 2024, which is why carriers mandate Xactimate for restoration work.
For restoration contractors, speaking Xactimate means faster approvals, fewer supplements, and getting paid 20-30 days faster than competitors submitting estimates in other formats. The software’s limitations frustrate many contractors, but those who master it gain a measurable competitive advantage.
Xactimate Subscription Tiers: What You Actually Need
Choosing the wrong tier wastes money on features you don’t use or leaves you without capabilities you need. Here’s what each subscription level includes and which restoration companies should choose it.
XactAnalysis Desktop ($70/month) The entry-level desktop software handles basic estimating for property damage. You can write estimates for water damage, fire damage, contents, and reconstruction. The pricing database and line item library are fully accessible. Monthly updates keep pricing current.
Limitations: Desktop-only access means you can’t write estimates on jobsites. No mobile app. Collaboration features are limited. No advanced reporting beyond basic estimate exports.
XactAnalysis Mobile ($85/month) Adds mobile app access to the desktop software. You can sketch floor plans, take photos, create estimates, and make notes on your smartphone or tablet at job sites. The mobile app syncs with your desktop software so work done in the field appears on your office computer automatically.
Benefits for restoration: Most water damage and fire damage assessments happen on-site. Being able to sketch the floor plan, photograph affected areas, and start the estimate while standing in the flooded basement or fire-damaged kitchen saves 2-4 hours per job compared to taking photos, making notes, then recreating everything in the office.
XactContents ($55/month, typically purchased as add-on) Specialized contents pricing for personal property damaged by water, fire, or other perils. The database includes depreciation schedules, replacement cost pricing, and specialized categories for electronics, clothing, furniture, collectibles, and more.
Essential for: Restoration companies doing contents cleaning and restoration, pack-out services, or fire damage work where contents make up significant portions of claims. If contents represent less than 20% of your revenue, you may not need this add-on.
XactRemodel ($75/month, add-on) Pricing database for complete remodeling and reconstruction work including kitchens, bathrooms, and whole-house renovations. Goes beyond basic restoration into full construction estimating.
Useful for: Restoration companies handling significant reconstruction after mitigation work. If you’re just doing emergency water extraction and drying, you don’t need XactRemodel. If you’re rebuilding kitchens after fire damage or entire basements after flooding, this database helps price the construction scope accurately.
XactNet ($155/month, comprehensive package) Includes all features: desktop and mobile estimating, contents pricing, remodel database, advanced reporting, collaboration tools, and priority support. Also includes XactPRM project management features and integration capabilities with third-party software.
Typical Restoration Company Needs
- Water damage focused: XactAnalysis Mobile ($85/month)
- Fire damage with contents: XactAnalysis Mobile + XactContents ($140/month)
- Full-service with reconstruction: XactNet ($155/month)
- Large company with multiple estimators: XactNet Enterprise (custom pricing, $300+/month)
Most restoration companies doing $1M+ annually use either XactAnalysis Mobile plus add-ons ($140-180/month) or XactNet ($155/month). The difference in cost is minor compared to the functionality gained.
Understanding Xactimate Pricing: RCV vs. ACV
Xactimate calculates estimates using Replacement Cost Value (RCV) by default, which is what it would cost today to replace damaged items or repair affected areas with new materials at current market prices. However, insurance policies often pay on an Actual Cash Value (ACV) basis initially, which is RCV minus depreciation.
How Depreciation Affects Restoration Claims Depreciation reduces the claim value based on the age and condition of damaged items. A 5-year-old carpet has depreciated value compared to new carpet. Twenty-year-old hardwood flooring is worth less per square foot than freshly installed hardwood. Xactimate applies depreciation percentages based on material type and age.
The insurance company typically pays ACV upfront, then releases depreciation (called recoverable depreciation) after you complete the work and submit proof of completion. This payment structure creates cash flow challenges for homeowners who need to pay you the full RCV amount but only received ACV from insurance.
Restoration Company Strategy Your estimate should always be written at full RCV. Don’t reduce your pricing to match the ACV payment—that’s the insurance company’s job through depreciation deductions. When homeowners ask why your estimate is higher than their insurance check, explain that insurance is paying ACV now with depreciation released upon completion.
Many restoration companies collect the deductible plus the depreciation amount from homeowners upfront, then pay the homeowner back when insurance releases recoverable depreciation. This protects you from homeowners who complete work, receive the depreciation, then struggle to pay you the difference.
According to the National Association of Public Insurance Adjusters, misunderstanding RCV versus ACV causes 40% of contractor-homeowner payment disputes. Make sure you and your customers understand the difference before starting work. Review our guide on strategic pricing techniques that maximize approved amounts while staying within insurance guidelines.
Essential Xactimate Line Items Restoration Companies Miss
Xactimate contains over 40,000 line items. Restoration companies typically use 200-300 regularly. The line items you miss most often cost you $400-1,200 per job in lost revenue.
Understanding which line items to include separates companies getting paid in full from those constantly negotiating supplements. Here are the categories and specific items contractors overlook:
Water Mitigation Line Items Most Companies Skip
- Emergency response fees (first call-out charge, after-hours premium)
- Structural drying equipment setup and operation (hourly rates for dehumidifiers, air movers)
- Moisture testing and documentation (moisture meter readings at baseline and completion)
- Mold remediation and treatment (preventative antifungal spray, mold remediation labor)
- Carpet drying versus carpet replacement (drying is cheaper but often missed as line item)
- Baseboards and wall removal for drying (often necessary for structural drying)
- Subflooring assessment and drying (plywood, OSB, hardwood substrate drying)
Fire Damage Restoration Items Frequently Omitted
- Soot removal and cleaning (varies by surface: drywall, painted, fabric)
- Smoke odor treatment (enzymatic treatments, ozone treatment)
- Structural demolition for damaged areas (beyond basic removal)
- Fire-damaged HVAC system cleaning and component replacement
- Soft contents restoration (curtains, bedding, upholstered furniture cleaning/restoration)
Labor Overhead Categories Contractors Underestimate
- Project management and supervision (legitimate line item in Xactimate)
- General labor markup for crew coordination
- Debris removal and haul-away (by volume or weight)
- Equipment rental for specialized drying or removal tools
The reason contractors miss these items is not because Xactimate lacks the line items. They exist in the database. Contractors miss them because they don’t know to look for them, don’t understand what qualifies as a separate line item, or assume the adjuster will catch them.
Adjusters won’t catch them. Your estimate is your proposal. If the work is legitimate and necessary, include it. The adjuster’s job is to review and approve your scope, not to add items you forgot to list.
Review your last 10 completed restoration projects. Ask yourself: Did I charge for initial assessment and emergency response? Did I document structural drying time and equipment? Did I include all cleanup and haul-away work? If you answer no to any, you’re leaving money on the table.
Does Xactimate Support Insurance Carrier Integration and Standardized Estimate Reporting?
Yes, Xactimate natively integrates with most major insurance carriers’ claim management systems, allowing estimates to be submitted directly in the carrier’s standardized format without manual translation or re-entry.
XactNet subscription includes integration capabilities with third-party claim management platforms used by insurance companies, TPAs (third-party administrators), and adjuster networks. When you generate an estimate in Xactimate, you can export it in formats that insurance companies accept directly into their claim files.
The standardized reporting comes from Xactimate’s format itself. Every line item, labor rate, material cost, and depreciation calculation follows the same structure that insurance adjusters use when they create estimates in their own Xactimate instances. This standardization eliminates the manual translation step.
For restoration contractors in Asheville working with regional and national carriers, this integration means:
- Estimates reach the adjuster instantly without manual file conversions
- No line items get lost in translation between your estimate format and their system
- Adjusters can approve or request supplements faster because they’re reviewing in their native format
- Payment processing happens on schedule because the estimate is already in the carrier’s claim file
Smaller Xactimate tiers (XactAnalysis Desktop and Mobile) can generate Xactimate-formatted estimates, but may lack direct carrier integration features included in XactNet. If you work with multiple insurance companies and need seamless integration, XactNet’s $155/month cost is offset by fewer delayed payments and supplement requests.
Learn more about how to optimize your estimating process for faster insurance approvals.
Advanced Drying Systems vs. Competitors for Xactimate Reporting
Xactimate line items for structural drying systems (dehumidifiers, air movers, drying chambers) are standardized across the software, but how you report them in your estimate determines whether you get paid for the full scope and duration.
The key difference in Xactimate reporting is not which physical equipment brand you use (Dri-Eaz, Injectidry, Fantech, or others). The difference is how you classify and charge for the equipment and labor in Xactimate’s line item structure.
| Drying Component | How It Appears in Xactimate | What Determines Line Item Amount |
|---|---|---|
| Dehumidifier Setup and Operation | Hourly or daily rental rate plus labor for placement and monitoring | Equipment type (portable vs. commercial), days in operation, cubic footage being dried |
| Air Mover Setup and Operation | Hourly or daily rental rate plus labor for placement and monitoring | Number of units, days in operation, area coverage required |
| Drying Chamber or Drying Box | Specialized equipment rental and labor | Rental rate varies by equipment brand capability and daily operating duration |
| Moisture Monitoring | Labor-based line item for moisture testing, documentation, and reporting | Number of test locations, frequency of testing, documentation requirements |
| Structural Drying Labor | General labor or specialized drying technician labor | Hours spent managing drying process, checking equipment, adjusting for conditions |
Most restoration competitors underreport drying systems in Xactimate because they bundle equipment and labor into vague line items or charge a flat rate that doesn’t reflect the actual days equipment ran and labor hours spent managing the drying process.
Adjusters review drying scopes skeptically because many claims involve 3-5 days of equipment rental, not 10-14 days. If your estimate shows 14 days of dehumidifier operation but the affected area is 200 square feet, the adjuster will question whether that duration is justified.
To report advanced drying systems correctly in Xactimate:
- Specify equipment type, quantity, and daily rental rates as separate line items
- Document structural drying labor in hourly increments tied to daily drying cycles
- Include moisture testing line items showing baseline measurements and completion testing at each location
- Reference your drying methodology in the estimate notes (e.g., “per IICRC guidelines, structural drying required for 10 days to reach equilibrium based on baseline moisture readings of 18-22% in subfloor materials”)
- Attach moisture test reports or drying logs as supporting documentation
Insurance adjusters don’t care whether you use Dri-Eaz or competitor equipment. They care whether the drying scope is necessary, reasonable in duration, and properly documented. Xactimate’s line item structure forces you to justify each element, which actually works in your favor if you know how to structure the estimate.
Quick Recap
- Xactimate is the standard for 80% of insurance carriers in North America. Using it means faster approvals and payment 20-30 days faster than competitors.
- Choose XactAnalysis Mobile ($85/month) for water damage focused restoration or XactNet ($155/month) for full-service companies with reconstruction and multiple estimators.
- Always write estimates at full RCV (Replacement Cost Value). Insurance will pay ACV now and release depreciation upon completion. Don’t undercut your pricing.
- The line items contractors miss most cost $400-1,200 per job. Review your estimates for emergency response fees, structural drying equipment and labor, moisture testing, mold treatment, and project management markup.
- Xactimate integration with insurance carriers happens at the XactNet level. Estimates go directly into carrier claim files without manual translation, eliminating delays.
- Drying systems get reported in Xactimate by breaking down equipment rental, labor, and moisture monitoring into specific line items tied to duration and documentation. Vague drying charges get questioned or reduced by adjusters.
Frequently Asked Questions
Is Xactimate worth the cost for a small restoration company?
Yes. XactAnalysis Mobile at $85/month pays for itself in faster approvals and fewer supplements on your first 2-3 jobs per month. Most restoration companies see ROI within 30 days of adoption. Without Xactimate, handwritten or generic software estimates get questioned more often and take longer to approve, costing you in delayed payment cycles and labor hours spent negotiating with adjusters.
Can I use a competitor to Xactimate instead?
Technically yes, but insurance adjusters strongly prefer Xactimate because they use it as their pricing standard. Non-Xactimate estimates require manual review and conversion, which slows approvals by 20-40 days. Most restoration companies serious about insurance work use Xactimate or accept slower payment cycles.
Do I need XactNet or is XactAnalysis Mobile enough?
XactAnalysis Mobile ($85/month) is sufficient for water and fire damage mitigation. XactNet ($155/month) is worth the upgrade if you do reconstruction work, have multiple estimators collaborating, need direct insurance carrier integration, or want advanced reporting. The cost difference is $70/month—evaluate based on your annual revenue and job complexity.
How do I know which line items to include in Xactimate?
Review the Xactimate database by damage type (water, fire, etc.) and the affected areas in the property. If the work is necessary for proper mitigation or reconstruction, a line item likely exists. Your Xactimate subscription includes detailed line item descriptions and guidance. When in doubt, search the database for keywords related to the work you’re doing (“drying,” “demo,” “mold,” etc.).
What happens if I include line items the adjuster doesn’t approve?
The adjuster will request a supplement (a revised estimate) or simply not approve that line item, reducing your estimate. If the work is legitimate and properly documented, include it anyway. Your job is to propose the work. The adjuster’s job is to approve or deny. Some adjusters approve on first submission, others ask questions. Don’t leave money on the table by excluding legitimate line items.
Does Xactimate include pricing for Asheville, NC specifically?
Yes. Xactimate’s monthly updates include localized labor rates and material costs for every ZIP code in North America, including Asheville and surrounding Buncombe County areas. Pricing reflects regional variations in labor costs and material availability specific to Western North Carolina.
Can Xactimate estimates be submitted directly to insurance companies?
Yes, if you have XactNet or if the insurance company accepts Xactimate-formatted exports. Most major carriers accept direct Xactimate submissions. Some regional carriers or TPAs may require estimates in a different format. Check with the specific insurance company before generating your estimate.