What Is Xactimate? The Insurance Estimating Software Explained
Xactimate is the software insurance companies use to build property damage estimates. Here's how it works, who uses it, and what every contractor and adjuster needs to know about it.
What is Xactimate?
Xactimate is a property damage estimating software owned by Verisk Analytics. It is used by insurance carriers, independent adjusters, public adjusters, and many restoration contractors to price the cost of repairing property damage from events like hail, wind, water, and fire.
Xactimate works by assigning a specific code to every unit of repair work — RFG 240 for architectural shingles per square, DRY 200 for drywall per square foot, and so on. Each code has a price that is updated quarterly based on the local market. The adjuster enters the scope (what needs to be repaired) and Xactimate calculates the total.
The result is called an Xactimate estimate — a line-by-line breakdown of every repair item, its quantity, its unit price, and its total cost. This estimate is what the insurance company uses to determine the claim payment.
Who uses Xactimate?
Insurance Carriers
Most major property insurance companies use Xactimate as their standard estimating platform. Adjusters — both staff and independent — build the initial scope in Xactimate and submit it as the basis for the claim payment.
Contractors & Roofers
Many roofing and restoration contractors use Xactimate to build their own estimates for comparison against the insurance scope. Knowing the same codes the adjuster uses is a significant advantage during the supplement process.
Public Adjusters
Public adjusters represent policyholders in disputes with insurance companies. They use Xactimate to identify missing items in the adjuster's scope and build supplement requests that are in the same format as the original estimate.
How Xactimate pricing works
Every line item in Xactimate has three components: a code (the specific work item), a unit (how it's measured — per square foot, per linear foot, per each), and a quantity (how much of that unit is needed). The unit price comes from the localized Xactimate price list for that market.
Example line item calculation
| Code | Description | Qty | Unit | Unit Price | Total |
|---|---|---|---|---|---|
| RFG 240 | Arch comp shingles | 28.50 | SQ | $245.00 | $6,982.50 |
| RFG 180 | Tear-off (1 layer) | 28.50 | SQ | $68.00 | $1,938.00 |
| RFG 226 | Starter shingles | 160 | LF | $3.25 | $520.00 |
| RFG 270 | Drip edge | 160 | LF | $2.15 | $344.00 |
The major Xactimate categories
Common questions about Xactimate
Does Xactimate pricing change by location?
Yes — Xactimate uses a localized price list called the 'Xactimate Price List' that is updated quarterly for each market. Prices in coastal markets, high cost-of-living cities, and areas with labor shortages are higher than national averages.
What is a Xactimate pricing period?
The pricing period is the date the estimate is created, which determines which price list is used. Using a price list from months ago on a current job can result in under-priced labor and materials.
Can contractors use Xactimate?
Yes — Xactimate licenses are available to contractors and public adjusters. However, the cost is significant and the learning curve is steep. Tools like Appraisly let contractors compare against Xactimate estimates without needing a full license.
Who owns Xactimate?
Xactimate is owned by Verisk Analytics (formerly Xactware). It is the dominant estimating platform in the property insurance industry, used by most major carriers for property damage claims.
Work with Xactimate estimates — without the license
Appraisly lets you compare your estimate against a Xactimate scope line by line — finding every discrepancy and missing item without needing a full Xactimate subscription.