What Is a Xactimate Estimate and Why Does Your Insurance Claim Need One?

Xactimate is the industry-standard software used by insurance companies to price repairs. Here's what it is, how it works, and why having your own Xactimate estimate can level the playing field.

By Marshall Smith, IAUA CPAU Certified Insurance Appraiser · Published February 9, 2026 · Updated July 28, 2026 · 5 min read · Filed under Insurance Claims

What Is Xactimate?

Xactimate is a software platform made by Verisk that is used across the insurance industry to estimate the cost of property repairs. When an insurance adjuster inspects your home after a storm and comes back with a dollar amount, that number almost always came from Xactimate.

The software contains a massive database of repair costs — materials, labor rates, equipment — that are updated regularly and adjusted for local market conditions. It's the common language of insurance claims: adjusters use it, contractors use it, and appraisers use it.

Understanding what Xactimate is and how it works gives you a significant advantage when dealing with your insurance company.

How Insurance Companies Use Xactimate

When your insurance company sends an adjuster to inspect your property, they document the damage and enter it into Xactimate. The software then generates a line-by-line estimate showing each repair task, the materials needed, labor costs, and the total.

Here's the important part: Xactimate is only as accurate as the information entered into it. If the adjuster misses damage — which happens frequently, especially with roof damage that isn't visible from the ground — those items won't appear in the estimate. If they use incorrect measurements, choose cheaper materials than what was actually installed, or skip code-required upgrades, the estimate will be lower than it should be.

The software itself is neutral. The issue is often what gets entered (or left out).

Why You Need Your Own Xactimate Estimate

When your contractor gives you an estimate for $45,000 and your insurance company comes back with $22,000, there's a disconnect. But if your contractor's estimate is a handwritten proposal and the insurance company's is a detailed Xactimate report, you're comparing apples to oranges.

Having your own Xactimate estimate levels the playing field. It allows for a true line-by-line comparison: where exactly do the two estimates differ? Did the insurance company miss the water damage in the bedroom? Did they use the wrong shingle type? Did they skip overhead and profit that your contractor legitimately needs to charge?

A properly prepared Xactimate estimate makes these discrepancies clear and documented, which is essential during the appraisal process.

What Makes a Good Xactimate Estimate

Not all Xactimate estimates are created equal. A quality estimate should include:

Complete scope of damage — every affected area documented with photos, measurements, and specific line items. Correct material specifications — if you have 30-year architectural shingles, the estimate should price 30-year architectural shingles, not cheaper 3-tab shingles. Local pricing — Xactimate adjusts costs by ZIP code, so the estimate should reflect your area's actual labor and material rates. Code upgrades — if local building codes require upgrades (like ice and water shield, drip edge, or specific ventilation), these should be included. Overhead and profit — legitimate contractors typically charge 10% overhead and 10% profit on top of direct costs, and this is a standard and accepted line item.

A well-prepared Xactimate estimate often reveals that the insurance company's offer was based on an incomplete inspection or incorrect assumptions.

Xactimate in the Appraisal Process

During the insurance appraisal process, Xactimate estimates are the primary tool both appraisers use to evaluate the claim. Your appraiser and the insurance company's appraiser each prepare their own Xactimate estimate, and then they compare them line by line.

This is where Xactimate really shines — because both estimates use the same format and pricing database, the discussion becomes focused and productive. Instead of arguing about vague dollar amounts, the appraisers can identify exactly where they agree and disagree, and resolve each item based on evidence.

This structured approach is one of the reasons the appraisal process is so effective. It removes emotion and opinion from the equation and keeps the focus on documented facts.

How to Get a Xactimate Estimate

Most homeowners can't create Xactimate estimates themselves — the software requires training and a subscription. However, there are professionals who can help:

Insurance appraisers — like Marshall Services LLC — use Xactimate as part of their standard process. When you hire an appraiser to handle your claim dispute, they'll prepare a comprehensive Xactimate estimate as part of the service. Some contractors are also trained in Xactimate and can prepare estimates in that format.

If you're planning to invoke the appraisal clause, having a Xactimate-based estimate is one of the most important steps you can take to support your case.

Ready to Take the Next Step?

Need a professional Xactimate estimate for your insurance claim? Marshall Services LLC prepares detailed, industry-standard estimates as part of our appraisal services. Every line item is documented and defensible.