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How to read an Xactimate estimate: the summary, the rooms and every line item
An Xactimate estimate looks dense the first time you open it. It is built from a few repeating parts: a cover page, a summary, a section for each room, and line items inside each room. Once you can read one line, you can read the whole document and compare it with another one.
What an Xactimate estimate is
Xactimate is estimating software made by Verisk. Adjusters and contractors use it to sketch a property, list the repair work room by room, and price each task from a regional price list. Every task on the printout has its own quantity, unit price and total. United Policyholders notes that Xactimate is the program most commonly used by adjusters.
Because so many carriers and contractors use the same software, two estimates for the same loss often share the same line item descriptions. That is what makes a line-by-line comparison possible.
The parts of the estimate, in order
Most Xactimate estimates follow the same order: a cover page with the claim details, the room-by-room line items, then summary pages with the totals. The exact layout depends on the report settings the carrier or contractor chose, so headings and column order can differ. The table shows what each part holds and what to check on it.
| Part | What it shows | What to check |
|---|---|---|
| Cover page | Insured name, property address, claim and policy numbers, date of loss, type of loss, the estimator, and the price list used | Names, address, claim number and date of loss are correct. Note the price list name. |
| Room sections | One section per room or area (kitchen, hallway, roof, exterior elevation), with the room's measurements at the top | Every damaged room is there, and the measurements match the real room |
| Line items | Each repair task in the room, with quantity, unit, unit price, tax, any overhead and profit, and the totals | The task, the quantity and the unit make sense for that room |
| Summary | Totals for the whole estimate: replacement cost, depreciation, actual cash value, the deductible, and the net amount | How the numbers step down from the full total to the net figure |
| Recap pages | Some reports add totals by trade (drywall, painting, flooring) or by room | Which trades carry the most cost, and whether any trade is missing |
Start with the cover page and the summary to get the big picture. Then read the rooms one at a time. United Policyholders points out that in an Xactimate estimate, all calculations are driven by room dimensions, so a small error in the room measurements carries into every item that uses them.
How to read one line item
Each line item answers four questions: what work, how much, at what price, and how much value comes off for age. Read the row left to right. The description and activity tell you the task, the quantity and unit tell you the amount, and the money columns build up to the replacement cost and actual cash value.
| Column | What it means |
|---|---|
| Description | The task in words, such as removing and replacing drywall or detaching and resetting a light fixture |
| Quantity and unit | How much of the task, in a unit of measure (square feet, linear feet, squares, each) |
| Unit price | The price per unit, taken from the price list for that area and date |
| Tax | Sales tax where it applies, usually on materials |
| O&P | Overhead and profit, when the estimator applies it at the line level |
| RCV | Replacement cost value: quantity times unit price, plus tax and any O&P |
| Age/Life and condition | How old the item is, its expected life, and its condition; these drive depreciation |
| Depreciation | The amount taken off for age and wear, shown as a percentage, a dollar amount, or both |
| ACV | Actual cash value: the RCV minus depreciation |
Not every report shows every column. Some estimators put overhead and profit at the bottom of the estimate instead of in each line.
Units of measure
The New Jersey Department of Community Affairs publishes an Xactimate glossary tip sheet for its recovery programs. These are the units and room references it lists that you will see most:
| Code | Meaning |
|---|---|
| SF | Square feet |
| LF | Linear feet |
| SY | Square yards of floor |
| SQ | Squares, the roofing unit |
| EA | Each |
| CF / CY | Cubic feet / cubic yards |
| DA / MO | Day / month, used for equipment and rentals |
| W / C / F | Square feet of walls / ceiling / floor in the room |
| PF / PC | Perimeter of the floor / perimeter of the ceiling |
A roofing square is 100 square feet. Room references matter because a line item can pull its quantity straight from the room's measured walls, floor or perimeter. If the room is drawn too small, every item tied to it comes out short.
Activity codes
A symbol or letter next to the item tells you what the work includes. Xactware's help pages define them this way:
| Code | Activity | What it covers in the price |
|---|---|---|
| + | Replace | Installation labor and new material |
| - | Remove | Removal labor |
| & | Remove and replace | Removing the old material and replacing it with new |
| R | Detach and reset | Removing the existing material and reinstalling it |
| M | Material only | Material, no installation |
| I | Install only | Installation, no material |
The activity code is where many differences between two estimates hide. A remove-only line and a remove-and-replace line can share almost the same description but price very different work.
RCV, depreciation, ACV and the deductible on the summary
The summary page takes the full replacement cost of the estimate and steps it down. Depreciation comes off to give actual cash value, the deductible comes off after that, and the result is the net figure. Reading those steps in order tells you where each part of the difference between RCV and the net amount comes from.
The North Carolina Department of Insurance defines actual cash value as the amount needed to fix your home minus the decrease in value because of age or use, and replacement cost value as the amount needed to repair it at today's prices. It describes the usual pattern with replacement cost coverage: the carrier may first pay actual cash value, then reimburse the difference after the repair is done and receipts are submitted. That second amount is called recoverable depreciation. Many summaries split depreciation into recoverable and non-recoverable lines. How your policy treats depreciation is a question for your carrier or agent. More on recoverable depreciation.
On the line items, check the age and life figures. United Policyholders says depreciation should be based on an item's remaining life expectancy, not necessarily its age, and that an old item can still be in good condition. It also suggests questioning a fixed percentage applied across every item. Overhead and profit has its own guide: how O&P shows up on an estimate.
The price list
Every unit price comes from a price list for a specific area and period. Verisk says it updates price lists monthly for more than 460 local markets. It also says not every price is freshly surveyed each month: labor rates are updated monthly, and material and equipment prices change when its market analysis shows a change.
Verisk describes its published prices as a foundation from which all parties can decide whether a price should be accepted or adjusted for specific circumstances. United Policyholders suggests asking the adjuster which price list was used and making sure it is not old cost data. When you compare two estimates, check that both use the same price list. If they don't, unit prices will differ even when the work is identical.
How to compare two estimates line by line
Compare scope first and price second. Line up the two estimates room by room, then item by item, and sort every difference into missing items, different quantities, different activity codes, or different prices. United Policyholders notes that if an item is not listed, its cost will not be in the final total.
- Match the cover pages. Same property, same date of loss, and the price list each estimate used. A different price list explains price gaps before you look at anything else.
- Match the rooms. List every room and area in each estimate. Mark any room that appears in one and not the other.
- Check the room measurements. Compare the dimensions at the top of each room. Different measurements change every quantity tied to them.
- Go item by item. For each line, compare the description, activity code, quantity and unit. Mark items that are missing, have a smaller quantity, or have a different activity.
- Compare prices last. Same item, same quantity, different unit price usually means a different price list or a manual price change. Note it, then move on.
- Write it down. Put each difference on one list by room, with a photo or measurement that supports it. That list is the starting point for a supplement.
Where gaps usually show: what to check
Gaps tend to sit in the same places on most estimates: rooms that were never entered, room measurements, quantities, detach-and-reset work, waste and code-related items. Use the table as a checklist. It tells you where to look, not what any estimate should include.
| Area | What to check |
|---|---|
| Missing rooms or areas | Closets, hallways, stairs, the attic, exterior elevations. United Policyholders gives an example of an estimate that listed every foot of baseboard room by room and left out the exterior stucco. |
| Room measurements | Walls, ceiling height and floor area against the real room, including openings and offsets |
| Quantities | Square feet, linear feet, squares or days that look low for the space or the drying period |
| Detach and reset | Items that have to come off for the work and go back on: fixtures, appliances, outlets, gutters, cabinets |
| Waste | United Policyholders says waste factors are hidden in other line items and should be evident for carpet, vinyl, wood flooring and roofing. Ask how much waste each quantity includes. |
| Code-related items | Work the local building code requires during the repair. Whether and how a policy treats code upgrades is a question for your carrier or agent. |
| Overhead and profit | Whether it is applied, and if so whether it sits in the lines or at the bottom |
| Depreciation | Age, life and condition on each line, and whether one flat percentage is applied everywhere |
What to do with what you find
Turn your list of differences into a written request with support for each item. A missing item needs a photo and a reason; a short quantity needs the measurement. Send it through the carrier's document channel so there is a record.
The full process is in how to write a supplement, and the steps after that are in the adjuster's estimate is too low. Terms you don't recognize are in the glossary.
Questions people ask
Can I get the adjuster's estimate as a PDF?
Ask the adjuster for a complete copy of the estimate, including the summary and every room section. A PDF is easiest to compare. Keep every version you receive, because revised estimates replace the line items.
What does RCV minus depreciation mean on my estimate?
RCV is the cost to repair at current prices. Depreciation is the amount taken off for age and wear. What remains is actual cash value, and the summary then subtracts the deductible from that.
Why do two Xactimate estimates for the same damage have different totals?
Usually because of scope: a missing room, a smaller quantity, or a different activity code. Sometimes the two estimates use different price lists or dates. Compare the cover pages first, then the rooms, then the line items.
What does the R next to a line item mean?
In Xactimate's activity codes, R means detach and reset. It covers removing an existing item and reinstalling it, such as a light fixture taken down so the ceiling can be repaired.
Where is overhead and profit on an Xactimate estimate?
The estimator can include it in each line item or show it as a separate amount near the end of the estimate. Some estimates do not include it. Ask where it is if you can't find it.