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Xactimate

The industry-standard software that insurance adjusters use to calculate the cost of your roof repair or replacement — and the document that determines your settlement offer before you ever speak to a contractor.

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What Xactimate Is

Xactimate is a proprietary estimating software developed by Verisk — the same data analytics company that produces hail storm tracking reports used in insurance claims. It is the dominant estimating platform in the property insurance industry, used by the vast majority of insurance carriers, independent adjusters, and many roofing contractors across the United States.

When your adjuster inspects your roof after a hailstorm, the damage they document gets entered into Xactimate. The software calculates repair and replacement costs using a database of local pricing data — material costs, labor rates, and standard installation procedures — updated regularly for each geographic market. The result is a line-item estimate that becomes the basis of your insurance settlement offer.

Understanding how Xactimate works — and where its estimates commonly fall short — is one of the most practical things a Colorado homeowner can do to protect their claim.

How Xactimate Calculates Your Estimate

Xactimate estimates are built from individual line items. Each line item represents a specific task or material — tear-off labor, felt underlayment, architectural shingles, drip edge installation — and Xactimate prices each item using its local pricing database for your zip code. The final estimate is the sum of all included line items plus applicable overhead, profit, and taxes.

The accuracy of a Xactimate estimate depends entirely on two things: the accuracy of the inputs and the completeness of the line items included. Both are common sources of underpaid claims in Colorado.

Inputs That Affect the Estimate

Every measurement and specification entered into Xactimate affects the output. The most consequential inputs include:

  • Roof measurements — total area in squares, eave length, ridge length, valley length, hip length, and rake length. Errors in any measurement directly affect material quantities and labor calculations.
  • Pitch — the slope of each roof section. Steeper pitches trigger labor surcharges that increase the estimate. An underestimated pitch produces an underfunded labor calculation.
  • Material specifications — the specific shingle type, underlayment grade, and other material choices entered into the estimate. An estimate that specifies three-tab shingles when architectural shingles are the correct replacement standard is materially underfunded.
  • Waste factor — the percentage of additional material required to account for cuts and irregularities. More complex roofs with dormers, multiple valleys, and unusual geometry require higher waste factors. An understated waste factor reduces the material quantities and the resulting payment.

Common Xactimate Line Items in a Roof Estimate

A complete Xactimate roof estimate for a Colorado home typically includes line items across several categories. Knowing what should be present helps you identify what is missing:

Tear-Off

Labor to remove existing roofing materials. Should reflect the number of layers being removed — a two-layer tear-off costs more than a single layer. Should also reflect any steep-slope labor surcharge applicable to the roof’s pitch.

Decking Repair

Replacement of damaged or deteriorated sheathing discovered during tear-off. Not always in the initial estimate — this is one of the most common supplemental claim items on older roofs. Should specify the correct material — OSB or plywood — at the appropriate thickness.

Underlayment

Felt paper (15# or 30#) or synthetic underlayment. Many initial estimates default to felt paper. Synthetic underlayment is the current standard and should be specified where applicable. The quantity should reflect the full roof area plus appropriate overlap.

Ice and Water Shield

Self-adhering waterproof membrane at eaves, valleys, and penetrations. Required by Colorado code in specific situations. Should be included as a separate line item — not combined with underlayment — and should reflect the correct coverage areas.

Drip Edge

Metal flashing at eaves and rakes. Required by the 2021 IRC as adopted in Colorado Springs. One of the most consistently missing line items in initial estimates, particularly when the original roof lacked drip edge.

Starter Strip

First-course material at eaves and rakes. Should be specified as purpose-made starter strip, not cut-down three-tab shingles. Frequently omitted from initial estimates despite being required by most manufacturer warranties.

Field Shingles

The primary roof covering. Should specify the correct shingle type — architectural, not three-tab, for most Colorado replacement work. Quantity should reflect the calculated area plus waste factor. The line item should reference current local pricing for the specified product.

Hip and Ridge Cap

Pre-formed dimensional ridge cap for ridges and hips. Should be priced separately from field shingles and specified as dimensional cap, not cut-down shingles. Quantity should reflect the total linear footage of ridges and hips.

Pipe Boots and Vent Collars

Individual line items for each penetration type — plumbing vent boots, exhaust vent collars, and similar components. Should include one line item per penetration, not a single combined allowance. Among the most consistently undercounted items in initial estimates.

Flashing

Step flashing, counter flashing, valley flashing, and kick-out flashing. Each type should appear as a separate line item with quantities reflecting the actual linear footage on the roof. Flashing is frequently underscoped in initial estimates.

Ventilation

Ridge vent, turbine vents, box vents, and other ventilation components. Damaged vents should appear as replacement line items. Code-required ventilation upgrades should appear as separate code upgrade line items rather than being combined with standard replacement items.

Overhead and Profit

General contractor overhead (typically 10%) and profit (typically 10%) on complex jobs requiring multi-trade coordination. Frequently omitted on roofing estimates even when the project scope clearly warrants it. One of the highest-value supplement items on complex Colorado claims.

Permit Fee

Building permit cost — a reimbursable expense under ordinance and law coverage. Routinely omitted from initial estimates despite being a legitimate and documentable project cost.

Why Xactimate Estimates Are Frequently Incomplete

Xactimate is only as accurate as the adjuster using it. Several factors consistently produce incomplete estimates in Colorado roof claims:

Desk Adjusting

When adjusters process claims remotely — using satellite imagery and submitted photos rather than a physical inspection — measurements are less accurate, pitch is often underestimated, and subtle damage items are missed entirely. Post-storm claim volume in Colorado frequently pushes carriers toward desk adjusting, which is one of the most consistent sources of incomplete initial estimates.

Time Pressure

After major hail events, adjusters are managing high claim volumes. Inspections that should take an hour are completed in twenty minutes. Line items that require specific knowledge to include — kick-out flashing, pipe boot counts, code upgrade items — are skipped when an adjuster is moving quickly.

Default Specifications

Xactimate has default specifications for many line items. An adjuster who accepts defaults without verifying them against the actual roof may specify felt paper instead of synthetic underlayment, standard architectural shingles instead of Class 4 impact-resistant shingles, or cut-down ridge cap instead of pre-formed dimensional cap. Each default that does not match the actual replacement standard underfunds the estimate.

Missing Code Upgrade Knowledge

Code upgrade items — drip edge, ice and water shield, skip sheathing overlay, ventilation improvements — require knowledge of the applicable local code to include correctly. Adjusters who are not current on Colorado Springs PPRBD or Pueblo PRBD requirements routinely miss code-mandated items that the contractor will be required to install regardless of whether insurance pays for them.

Omitted Collateral Damage

Xactimate can produce estimates for gutters, downspouts, siding, HVAC equipment, and other collateral damage — but only if the adjuster entered those items. Collateral damage that was not inspected or documented does not appear in the estimate regardless of how clearly it was caused by the same storm.

How to Read a Xactimate Estimate

When you receive your insurance estimate, review it systematically against what your contractor’s scope includes. Look for:

  • Missing line items — compare the estimate against the checklist of items that should be present in a complete scope
  • Incorrect pitch — find the roof diagram in the estimate and compare the listed pitch for each section against your contractor’s field measurements
  • Wrong material specifications — confirm that shingle type, underlayment type, and ridge cap type match the correct replacement standard
  • Understated quantities — verify that the total squares, linear footage items, and individual component counts match the actual roof
  • Missing overhead and profit — confirm O&P is present on complex jobs requiring multi-trade coordination
  • Missing permit fee — confirm a permit line item is present
  • Pricing date — Xactimate pricing is updated periodically and should reflect current local market rates. Estimates generated with outdated pricing databases may understate current costs.

Contractor Xactimate Estimates

Many roofing contractors also use Xactimate to generate their repair estimates, which creates a common language between contractors and insurance adjusters that simplifies supplement negotiations. When a contractor’s Xactimate estimate and an adjuster’s Xactimate estimate use the same software, the differences between them are easier to identify, document, and present as specific supplement line items.

A contractor who submits a supplement in Xactimate format — with specific line item references, correct quantities, and current local pricing — is presenting the claim in the format the carrier’s system is designed to receive. This reduces friction in supplement negotiations and makes the basis for additional payment clear and documentable.

Common Xactimate Questions

Can I get a copy of the Xactimate estimate from my carrier?

Yes — you are entitled to a copy of the estimate generated for your claim. Request it in writing from your carrier or adjuster. The full Xactimate estimate includes the line item breakdown, measurements, material specifications, and pricing. Reviewing it line by line against your contractor’s assessment is one of the most effective ways to identify supplement opportunities before accepting a settlement.

My contractor’s estimate is higher than the Xactimate estimate. What does that mean?

It typically means one or more of these things: the Xactimate estimate is missing line items, using incorrect measurements, specifying lower-grade materials, or using pricing that does not reflect current local market rates. The gap between your contractor’s estimate and the insurance estimate is not automatically a problem — it is the starting point for a supplement negotiation. A contractor who can identify specific line item differences and document them clearly gives you the best position in that negotiation.

Does Xactimate pricing reflect actual Colorado market rates?

Xactimate updates its local pricing databases periodically based on market surveys — but those updates lag actual market conditions, particularly during periods of rapid cost inflation. In Colorado’s post-storm construction market, where demand spikes after major hail events, actual contractor pricing may exceed Xactimate rates. Documenting the gap between Xactimate pricing and actual market pricing through multiple contractor bids can support a supplement argument based on market rate divergence.

What is the difference between Xactimate and XactAnalysis?

Xactimate is the estimating software used to create individual claim estimates. XactAnalysis is a claims management platform used by carriers to track, review, and audit estimates submitted by adjusters and contractors. Homeowners interact with Xactimate through the estimates produced for their claims — XactAnalysis is primarily a carrier-side tool for managing claim workflows and reviewing estimate accuracy at a portfolio level.

How Claim Advocacy Helps With Xactimate Estimates

Xactimate is the language of insurance claims in Colorado. Understanding it — and being able to work within it — is what separates effective claim advocacy from general contractor advice.

  • Estimate review — systematically reviewing the carrier’s Xactimate estimate against a complete field inspection to identify every missing line item, measurement error, and specification discrepancy
  • Supplement preparation in Xactimate format — submitting supplements with specific line item references, correct quantities, and current local pricing in the format carriers are designed to process
  • Pitch verification — comparing satellite-derived pitch measurements in the estimate against field measurements and documenting discrepancies for correction
  • Material specification correction — identifying default specifications that do not match the correct replacement standard and documenting the upgrade requirement
  • Code upgrade line items — adding code-required items with references to the applicable PPRBD or PRBD code provisions
  • Pricing currency verification — confirming that the estimate pricing reflects current local market rates and documenting divergence when it does not

Related Glossary Terms

Think Your Xactimate Estimate Is Missing Something?

Most initial Xactimate estimates on Colorado roof claims are incomplete — not because carriers are acting in bad faith, but because adjusters working under time pressure miss things that a thorough field inspection would catch. A free inspection gives you an independent line-item comparison so you know exactly what your estimate should contain before you accept a settlement that may be leaving money on the table.

📞 Call to discuss your claim: (719) 210-8699
📧 Email: gerald@winik.io

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