If you've ever filed a property damage insurance claim, you've likely encountered an Xactimate estimate — even if you didn't know it by name. Xactimate is the software platform that drives the vast majority of property insurance claims in the United States, and understanding how it works gives you a significant advantage as a homeowner. According to the Insurance Information Institute, property damage claims cost homeowners an average of $12,514 for water damage alone, so knowing how to read and evaluate your estimate can directly impact your financial outcome.
What Is Xactimate?
Xactimate is a computer-based estimating software developed by Verisk Analytics that calculates the cost of property damage repair and restoration. It is the industry standard used by approximately 90% of insurance carriers in the United States, according to Verisk. When your insurance adjuster visits your home after a water leak, fire, storm, or mold issue, they use Xactimate to generate a line-item estimate of what it will cost to restore your property to its pre-loss condition.
The software is not a negotiation tool or a rough guess. It pulls from a continuously updated database of regional labor rates, material costs, and equipment pricing specific to your geographic area. For homeowners in Central Florida — including Volusia, Seminole, Orange, and Osceola counties — this means your estimate reflects actual local costs for construction labor, building materials, and specialty services like mold remediation or structural drying.
How Xactimate Pricing Is Calculated
Regional Price Lists
Xactimate uses regional price lists updated monthly to account for local variations in labor costs, material availability, and market conditions. A drywall replacement in DeBary or Deltona may cost differently than the same repair in Miami or Jacksonville because labor markets differ across Florida.
Line Items
Every task is broken down into individual line items that include:
- Description — What the task involves (e.g., "Remove and replace 1/2 inch drywall")
- Quantity — The unit of measurement (square feet, linear feet, each)
- Unit price — The cost per unit based on regional pricing
- Total — Quantity multiplied by unit price
Overhead and Profit (O&P)
Xactimate estimates may or may not include a 10% overhead and 10% profit markup, commonly referred to as "O&P." According to the IICRC, overhead and profit are standard when a general contractor manages multiple trades. If your restoration project requires coordination of multiple subcontractors — which most fire and storm damage projects do — O&P should be included.
How to Read Your Xactimate Estimate
Your estimate will typically be organized into a summary page (total cost by category), a room-by-room breakdown (line items for each affected area), and line item details. When reviewing, watch for these common issues:
- Missing rooms — Damage in a closet, hallway, or adjacent room may not be included
- Insufficient drying days — The IICRC S500 standard requires 3 to 5 days of professional drying. If your estimate includes only 1 day, it may be underestimated
- No mold treatment — If water sat for more than 48 hours, antimicrobial treatment should be included
- Missing contents manipulation — Furniture and belongings that need to be moved, cleaned, or stored should be accounted for
Why Your Restoration Company Should Also Use Xactimate
This is a critical point that many homeowners miss. When your restoration company uses the same Xactimate software as your insurance adjuster, both parties are speaking the same language. There is no ambiguity about pricing, no disagreement over what constitutes a fair rate, and no confusion about scope.
At People First Restoration, we generate Xactimate estimates for every project we handle across Central Florida. This allows us to compare our estimate directly to the adjuster's estimate line by line. When discrepancies exist — and they frequently do — we can identify exactly which line items are missing, underquantified, or priced incorrectly. The Insurance Information Institute notes that initial adjuster estimates often represent a starting point rather than a final settlement, and having your own Xactimate estimate is the most effective way to ensure accuracy.
If your restoration company provides only a lump-sum bid or a handwritten estimate, you lose the ability to make a direct comparison with your insurance adjuster's scope. This can lead to disputes, delays, and out-of-pocket costs that could have been avoided.
The Supplemental Claims Process
A supplemental claim — often called a "supplement" — is filed when additional damage is discovered during restoration that was not included in the original adjuster estimate. This is a standard and expected part of the insurance claims process, not an adversarial move.
Here's how it typically works:
- Your restoration company begins work based on the approved estimate
- Hidden damage is discovered — for example, mold behind drywall, water in a wall cavity not visible during the adjuster's visit, or structural damage concealed by flooring
- Your restoration company documents the additional damage with photos, moisture readings, and detailed notes
- A supplemental Xactimate estimate is submitted to your insurance company with the supporting documentation
- The insurance adjuster reviews and approves the additional scope and cost
According to FEMA, water damage often extends beyond what is initially visible, particularly in Florida homes where humidity accelerates moisture migration through building materials. Supplements ensure that the full scope of damage is covered by your insurance policy.
For a detailed breakdown of what to expect during the claims process, see our guide on what to expect during the insurance claims process. You can also review typical costs for different restoration services in our Central Florida restoration cost guide.
Tips for Homeowners
- Request the full estimate — You are entitled to the complete Xactimate estimate, not just a summary letter
- Compare room by room — Walk through your home and verify every damaged area is represented
- Check drying days — Verify adequate air movers, dehumidifiers, and monitoring days per IICRC S500
- Ask about O&P — If your project involves multiple trades, overhead and profit should be included
- Consult your restoration company — Have them review the adjuster's estimate before you accept
How People First Restoration Helps
At People First Restoration, we use Xactimate on every project and work directly with insurance adjusters throughout Central Florida. We review your adjuster's estimate, identify gaps, and submit supplements with full documentation when additional damage is found. We offer direct insurance billing with no upfront cost — you only pay your deductible.
Call us at (888) 278-8054 for a free inspection, or visit our insurance claims guide for more information.
Sources
- Insurance Information Institute (III) — Statistics on average water damage claim costs ($12,514) and guidance on supplemental claims as a standard part of the insurance process.
- Verisk Analytics — Data on Xactimate market adoption (approximately 90% of U.S. insurance carriers) and regional price list methodology.
- IICRC S500 Standard for Professional Water Damage Restoration — Professional drying standards, equipment requirements, and documentation protocols for water damage restoration.
- FEMA (Federal Emergency Management Agency) — Guidance on hidden water damage in residential properties and the importance of thorough damage assessment.