What is Xactimate? Why Should I Use It?

If you’re a restoration contractor—or thinking about getting into insurance work—you’ve probably run into “Xactimate.” Whether you love it, hate it, or are just confused by it, the reality is Xactimate is baked into nearly every property insurance job across the country. Here’s what you need to know, with a straightforward look at why it’s worth your time to learn (even if nobody is promising it’ll be fun).

What is Xactimate (Really)?

Xactimate is an estimating software built by Verisk, and it’s almost impossible to avoid in insurance restoration. Big insurance companies—over 90% of them—use it as their standard. It’s become the default language in the industry, whether you’re working as a program contractor, running a small independent shop, or subcontracting for mitigation work.

Estimates done in Xactimate aren’t some magical improvement, but they are what adjusters expect: detailed, room-by-room, with itemized line items based on regional pricing that gets updated monthly. It covers the basics—materials, labor, measurements—but also has codes for all the little odds and ends that come up on real jobs.

Why Even Bother Learning It?

Let’s be honest: Most contractors don’t choose Xactimate—they learn it because it’s required if you ever want to get paid by insurance or work directly with adjusters. If your estimate doesn’t come in a format the carrier recognizes, prepare for delays, rejections, or doing the whole thing again. If you want to play the insurance restoration game, this is the scoreboard.

The good news? Learning Xactimate means you can build estimates that hold up under scrutiny. You’ll be able to justify every line item—nothing gets lost in translation. And because the software forces you through every step, from the initial sketch to the checklists, you’re less likely to miss something important and lose out on money you should have earned.

Where Xactimate Helps (and Where It Doesn’t)

Where it’s useful:

- You get paid for the work you’ve actually done (if you use all the right codes).

- Adjusters are much less likely to push back, since you’re using the format they know.

- Built-in checklists and tools keep you organized on big, messy jobs.[5][1][8]

Where it’s frustrating:

- The learning curve is real. Finding the right line item—let alone building macros for speed—takes practice and some trial and error.[1][5]

- Xactimate’s pricing won’t always keep up with rapid market shifts, so you still need to review and challenge numbers when supply and demand go crazy.

- There’s a risk of missing key charges if you’re rushing or not systematic.

- Xactimate pricing can be inconsistent (low on some items, high on others).

Why It’s Worth It (Even If You’d Rather Not)

Using Xactimate isn’t about making things harder; it’s about getting on the same page with the insurance world. Learning it early stops headaches later, gets you paid quicker, and helps you have fewer arguments about why you’re charging what you’re charging. There are easier ways to estimate small homeowner jobs—but if insurance work is any part of your business, Xactimate is simply part of the terrain.

Most importantly, knowing how to use Xactimate well makes your documentation stronger and your business more resilient in the eyes of carriers and adjusters. That means you spend more time getting jobs done—and less time defending your invoices or chasing down payments.

Learning Xactimate is work, but, for most contractors, it’s work that pays off. If you want more tips for getting up to speed, or want to shortcut the process for your first estimates, check out some practical guides and macros designed to help new estimators on ScopeCraftSystems.com.

Mastering Xactimate isn’t about loving software—it’s about owning your business reality and making the system work for you, not against you.