Insurance companies and contractors both use Xactimate software to price construction work. Understanding how this system works - and where estimates commonly fall short - helps homeowners ensure fair claim settlements.
What Is Xactimate?
Xactimate is the industry-standard estimating software used by:
- Insurance adjusters
- Roofing contractors
- Public adjusters
- Appraisers
It prices construction by unit (square foot, linear foot) based on monthly regional price lists (e.g., “DNV_JAN2026” for Denver). These are average prices that don’t automatically account for job-specific complexities.
Why Estimates Fall Short
The financial gap between initial estimates and actual costs comes from missing selectors and modifiers. An adjuster might use basic line items without the specific additions your roof requires.
Example
An adjuster uses code RFG 300 (Remove and Replace 3-tab Shingle) at the base rate.
But your roof is:
- 10/12 pitch (steep)
- Two stories high (high access)
- Requires ice and water shield (code/warranty requirement)
Without the STEEP charge, HIGH modifier, and ice and water shield line items, the estimate is thousands of dollars short.
Commonly Missed Line Items
| Item | Description | Why It’s Missed | Justification |
|---|---|---|---|
| O&P | 10% + 10% overhead and profit | Carriers argue “single trade” doesn’t require GC supervision | Prove complexity: coordination of 3+ trades (roof, gutter, paint) |
| Ridge & Starter | Premium accessory shingles | Buried in “waste factor” of field shingles | Manufacturer specification for wind warranty |
| Ice & Water Shield | Self-adhering membrane at eaves | Assumed not required in Denver | Manufacturer warranty requirement; surrounding cities require it by code |
| Waste Factor | Extra material for cuts | Default 10% used; complex roofs need 15-20% | Waste calculation report showing roof geometry |
| Steep Charge | Labor premium for pitch | Overlooked from ground inspection | Photos of pitch gauge showing slope |
| High Access | Labor premium for height | Often missed | Ladder setup photos, two-story documentation |
| Permit Fees | City permit and inspection | Sometimes omitted | Actual permit receipt |
| Drip Edge | Metal flashing at eaves/rakes | Assumed existing is reusable | Code requirement when resheathing or replacing edge |
The Supplement Process
Supplementation is the formal process of correcting estimate deficiencies:
Step 1: Receive Insurance Scope
After the adjuster visit, you receive a written estimate with line items and pricing.
Step 2: Cross-Reference
We compare the insurance scope against our own Xactimate estimate, noting:
- Missing line items
- Incorrect measurements
- Absent modifiers/selectors
- Code requirements not included
Step 3: Document
We prepare supporting documentation:
- Photos of specific conditions
- Code citations (Denver Building Code, IRC)
- Manufacturer installation instructions
- Measurement reports
Step 4: Submit
A formal supplement request is submitted to the carrier including:
- Revised Xactimate estimate
- Supporting documentation
- Explanation of each requested item
Step 5: Review and Payment
The carrier reviews the supplement. Legitimate, well-documented requests are typically approved, and a supplemental check is issued.
Why Xactimate Format Matters
Sending a lump-sum invoice (“New Roof: $20,000”) is ineffective. The carrier can’t evaluate it against their own estimate.
Sending a line-by-line Xactimate estimate in the carrier’s format allows:
- Direct comparison of pricing
- Identification of specific discrepancies
- Faster approval of legitimate items
This is why working with a contractor who uses Xactimate is valuable for insurance claims.
How We Handle Supplements
Our process:
- Attend adjuster meeting - Ensure damage is properly documented
- Review initial scope - Identify gaps same day
- Prepare supplement - Xactimate format with photo documentation
- Submit promptly - Don’t let claims age
- Follow up - Track progress until resolution
What If Supplements Are Denied?
If legitimate supplements are repeatedly denied:
- Request written explanation of denial
- Provide additional documentation if needed
- Escalate to supervisor
- Consider appraisal process for value disputes
The appraisal clause in your policy provides binding resolution when you and the carrier can’t agree on the amount of loss.
Conclusion
Understanding Xactimate and the supplement process helps homeowners recognize when initial estimates are incomplete. Professional documentation in the carrier’s own format and language is the key to ensuring fair claim settlements.