Category: Restoration Intelligence

Xactimate X1 is Verisk’s unified estimating platform for property claims work. It runs across desktop, online, and mobile with cloud-synced data, which means a field tech can start a sketch on a tablet at a loss site and a project manager can finish the estimate on a desktop in the office without re-keying anything. For restoration operators, that field-to-office continuity is the single biggest workflow advantage X1 brings to the business.

This guide assumes you already understand how Xactimate fits into a restoration company’s pricing workflow. If not, start with our restoration pricing and estimating master guide for the full context.

What Makes X1 Different

X1 is the modern Xactimate experience Verisk has been moving the platform toward over the last several years. The defining capabilities are cross-device sync (desktop, online, mobile share the same estimate state), Sketch AR for mobile measurement, customizable rules that enforce estimating practices in real time, and the Line Item Advisor that suggests appropriate codes from the roughly 17,000-item Xactimate library.

The practical impact is that X1 reduces the amount of post-claim review time required to catch missed line items, mismatched scopes, and inconsistent estimating practices across a team. For multi-rep restoration companies, this is where the platform pays for itself.

The Field-to-Office Workflow

The intended X1 workflow for a restoration job looks like this: field tech arrives on site, opens the mobile app, runs a Sketch AR measurement of the affected rooms, captures damage photos tied to specific rooms, adds preliminary line items, and syncs to the cloud before leaving the site. Back at the office, the estimator opens the same estimate on desktop, adds the rest of the scope (equipment, labor, content manipulation), runs the rules check, and prepares the estimate for submission.

Companies that adopt this workflow consistently report 30 to 50 percent reductions in time from loss to estimate submission, which directly improves cash flow and TPA scoring.

Customizable Rules: The Quiet Margin Lever

X1’s customizable rules feature is one of the most under-used capabilities on the platform. Rules let you encode your estimating practices (always include this line item with that one, always default to this dehumidifier class on Cat 2 jobs, always flag estimates above a certain dollar amount for senior review) directly into the platform.

The rules then enforce themselves in real time as the estimator builds the estimate. This is the difference between a company whose estimates are inconsistent across reps and a company whose estimates look like they all came from the same hand. For TPA programs and audit defensibility, that consistency is worth real money.

Line Item Advisor and the 17,000-Item Library

Xactimate’s line item library has roughly 17,000 items, which is more than any human estimator can hold in memory. The Line Item Advisor in X1 suggests appropriate codes based on the context of the estimate, which speeds up estimate construction and reduces the chance of using the wrong code for a specific scope item.

For new estimators, this feature shortens the learning curve significantly. For experienced estimators, it surfaces line items they might otherwise default away from out of habit.

X1 vs Legacy Xactimate

If your team is still working primarily on the legacy Xactimate experience, the migration to X1 is worth planning intentionally. The cloud-sync model, the mobile capabilities, and the rules system all require a workflow shift, not just a software update. Plan two to three months of dual-running before retiring legacy workflows entirely.

Getting Your Team on X1

Verisk offers an X1 training course covering the full platform, including importing and creating estimates, claim information setup, interior and roof Sketch diagrams, line item entry with localized pricing, and reporting. Third-party providers also offer X1-specific training. Whichever path you choose, formal training shortens onboarding time substantially compared to self-teaching.

Frequently Asked Questions

What is the difference between Xactimate X1 and the legacy Xactimate experience?

X1 is the unified, cloud-synced version of Xactimate that runs identically across desktop, online, and mobile. The legacy experience was device-specific with manual sync. X1 also adds Sketch AR for mobile measurement, customizable rules, and the Line Item Advisor. Functionality is broadly similar, but the workflow and collaboration model are substantially different.

Do I need separate Xactimate licenses for desktop, mobile, and online?

No. An X1 license covers desktop, online, and mobile use under the same account. A user can move between devices on the same estimate without re-licensing. License pricing depends on the seat type and contract; verify current pricing directly with Verisk.

How accurate is Xactimate Sketch AR for restoration measurement?

Sketch AR is accurate enough for most residential interior measurements when the device camera and lighting allow for clean tracking. For jobs requiring high-precision measurement (insurance disputes, large commercial losses), traditional measurement methods are still recommended as a verification step.

Can I use Xactimate X1 offline?

Yes, the mobile app supports offline work for sketching and basic line item entry. Estimates sync to the cloud when connectivity returns. For full pricing data and the complete line item library, an internet connection is required.

Should restoration owners learn X1 themselves or hire an Xactimate professional?

Both. Owners benefit from understanding the platform well enough to review estimates intelligently and spot scope gaps. For high-volume estimate production, hiring or contracting a dedicated Xactimate professional almost always pays for itself in faster estimate turnaround and fewer scope misses.

Xactimate is the most widely used estimating platform in property restoration, and the prices behind it are not invented in a back room. Verisk publishes a documented pricing research methodology that explains how every line item price is built, updated, and released. For restoration operators, understanding the methodology is the foundation of defending your estimates to TPAs, adjusters, and customers.

If you have not read the broader pricing context first, start with our restoration pricing and estimating master guide.

The Research Footprint

Verisk’s pricing research covers 468 geographic regions across the United States and Canada. The data is gathered from a network of more than 50,000 providers of materials, equipment, and labor, generating over 345,000 survey points each year. That research footprint is what makes Xactimate pricing the reference standard for property claims work — no other estimating platform publishes data at that scope.

The practical takeaway for restoration operators is that Xactimate is not “national” pricing dressed up as local — it is genuinely localized to your service area, which means defending your estimate to an out-of-area adjuster is a matter of pointing them to the documented research for your region.

How Cluster Analysis Sets the Number

For each line item in each region, Verisk performs cluster analysis on the submitted price points. The methodology identifies the largest cluster of prices and selects a point within the appropriate range. The published price reflects the most common recently submitted price for that item in that region.

This matters because it explains a recurring estimator complaint: “the price feels low compared to what I would charge.” The Xactimate price is not the highest price or the lowest price — it is the most common price for the same scope of work in the same region. Operators charging meaningfully more than the published price are signaling either a different scope, higher-quality work, or a pricing strategy that needs to be defended on its own terms.

The Update Cycle: What Updates When

Verisk updates Xactimate price lists monthly. Within that monthly cycle, the work is layered:

• Vendor-specific pricing updates nightly for items sourced from individual vendor catalogs
• Hourly billable labor rates update monthly based on the most recent regional research
• General quote prices update monthly with the new price list release
• Material and equipment components update when market analysis indicates a change is warranted

The “when warranted” language is important. Not every line item is freshly surveyed every month — that would not be feasible. Verisk’s methodology is closer to “update when the market moves” than “update on a fixed calendar.” This is why two adjacent monthly price lists can look almost identical for stable categories, then jump for categories where lumber, drywall, or other inputs have shifted.

What This Means for Your Estimating Templates

Restoration companies pulling from Xactimate should refresh their internal estimating templates monthly when the new price list drops. Templates frozen at older pricing produce estimates that get reduced on submission because they are out of step with the current published research.

The same applies to cash work where Xactimate pricing is used as a baseline reference. Cash estimates built off stale price lists give away margin to inflation that the published prices have already absorbed.

How to Read a Verisk Methodology Document

The Verisk pricing research methodology is publicly documented and worth reading at least once for anyone building estimates daily. The document explains how labor rates are weighted, how material prices are sourced, how equipment rentals are priced, and how the cluster analysis selects the published number. Knowing this language gives you a defensible vocabulary when an adjuster questions a line item.

When Xactimate Pricing Is Not the Right Reference

Xactimate pricing is appropriate for the vast majority of standard restoration scope. It is not the right reference for: highly specialized work outside the line item library, custom installations with no comparable market data, art and high-value content cleaning, or unusual structural work where the cluster analysis has thin data. For those scopes, custom estimates or specialty contractor pricing is the correct approach.

Frequently Asked Questions

How often does Verisk update Xactimate pricing?

Verisk publishes price list updates monthly. Within that cycle, vendor-specific pricing updates nightly, hourly labor rates update monthly, and general line item prices update when market analysis warrants. The monthly release is the cadence operators should plan their template refreshes around.

How many regions does Xactimate pricing cover?

Xactimate covers 468 geographic regions across the United States and Canada, with pricing researched independently for each region. This is the reason the same line item can have meaningfully different prices in different markets — the published number is built from local research.

How does Verisk decide what price to publish for a line item?

Verisk uses cluster analysis on submitted price points across more than 50,000 providers and over 345,000 annual survey points. The methodology identifies the largest cluster of prices for a line item in a region and selects a representative point within that range. The published price reflects the most common recently submitted price.

Why does my Xactimate price feel lower than my actual cost on some items?

If the published price is consistently below your cost, you are likely either operating in a higher-cost niche than the cluster average, using a higher-quality material than the published reference, or carrying overhead that the published labor rate does not absorb. Each of these is a legitimate basis for a custom price modifier or a documented variance — not a reason to ignore the published price.

Can I challenge a Verisk price if I think it is wrong for my market?

Yes. Verisk accepts pricing feedback from contractors and uses contractor submissions as part of its survey input. Submitting documented evidence of a price discrepancy can influence the next monthly research cycle. Individual estimates can also include documented variances when the published price does not reflect the actual cost of the specific work.

One of the most consequential Xactimate updates in recent years arrived in February 2026: Verisk expanded the labor efficiency architecture from two models to three. The new Large Restoration/Remodel option fills a long-acknowledged gap between service-level work and full rebuild scenarios. For restoration operators handling mid-sized losses, the change is meaningful — and using the wrong model is a fast way to mis-price the labor on a job.

This article assumes you understand how Xactimate fits into the broader pricing workflow. For that context, start with our restoration pricing and estimating master guide.

The Old Two-Model Architecture

Before the February 2026 update, Xactimate offered two labor efficiency models: a service-level model for small-scope, single-trade work and a restoration/remodel model for larger rebuilds. The two-tier architecture worked well at the extremes but struggled in the middle.

Mid-sized restoration jobs — partial kitchen rebuilds after water loss, multi-room fire cleanup, large mold remediation projects — did not align cleanly with either model. Estimators routinely made judgment calls or layered manual workarounds to bridge the gap. The result was inconsistent labor pricing across similar jobs, depending on which estimator built the estimate.

What the New Three-Model Architecture Looks Like

The 2026 update keeps the existing service-level and restoration/remodel models and adds a third tier — Large Restoration/Remodel — designed for mid-sized work that involves multiple trades, longer durations, and more complex coordination than a service-level job, but does not reach the scale of a full rebuild.

The practical effect is that estimators now have a defensible, system-supported choice for the work that previously required manual workarounds. This produces more consistent labor pricing across a portfolio of jobs and reduces the audit exposure that comes from improvised efficiency selections.

How to Choose Between the Three Models

The right model selection depends on job characteristics. Verisk’s documentation provides detailed selection criteria, but the field-level shorthand most experienced estimators use looks like this:

• Service-level — single-trade, short-duration, minimal coordination, typical small water mitigation or single-room work
• Large Restoration/Remodel — multi-trade, multi-week duration, moderate coordination, mid-sized fire/water/mold or partial rebuild
• Restoration/Remodel — full rebuild scope, long duration, full general contracting coordination, large losses

The Large Restoration/Remodel tier is the one most likely to be under-used initially because it is new and unfamiliar. Operators should review recent estimates that fell awkwardly between the two prior models and identify which would now fit the new tier.

Why Labor Efficiency Matters for Margin

Labor efficiency in Xactimate is not a discount or a multiplier — it is a coefficient that adjusts labor hours based on the type of work being performed. The same line item carries different labor hours under different efficiency models, because a service-level repair really does take less coordination overhead than a large rebuild.

Selecting the wrong efficiency model on a job can shift the estimated labor by 10 to 25 percent, which is the difference between a profitable job and a job that loses money on labor underestimation.

How TPAs Are Adopting the New Model

TPA programs typically take a quarter or two to fully integrate new Xactimate methodology updates into their audit and review workflows. During the transition, expect inconsistency across reviewers — some will accept Large Restoration/Remodel selections without question, others will challenge them. Documenting the reasoning for the model selection in the estimate notes is the best defense.

What to Update in Your Estimating Process

Three things to update now that the three-model architecture is live: estimating templates should include the new Large Restoration/Remodel option as a standard selection for qualifying scopes, training materials should be refreshed to cover when to use each tier, and audit checklists should include a labor efficiency model review as a standard line item.

Frequently Asked Questions

What changed in Xactimate’s 2026 labor efficiency update?

Verisk expanded the labor efficiency architecture from two models to three by adding the Large Restoration/Remodel option. The update was presented in February 2026 and is designed to bridge the gap between service-level work and full rebuild scenarios for mid-sized restoration jobs.

When should I use the Large Restoration/Remodel labor efficiency model?

Use it for mid-sized jobs that involve multiple trades, multi-week duration, and moderate coordination but do not reach the scale of a full rebuild. Common examples include partial kitchen rebuilds after water loss, multi-room fire cleanup, and large mold remediation projects.

How much can the wrong labor efficiency model affect my estimate?

Selecting the wrong efficiency model can shift the estimated labor on a job by roughly 10 to 25 percent depending on the scope. On a $30,000 estimate, that is $3,000 to $7,500 of labor either over- or under-stated. The model choice is a meaningful margin lever, not a minor technical detail.

Do TPAs accept the new Large Restoration/Remodel model?

Yes, but adoption is uneven during the early months after the release. Some reviewers accept the new tier without question, others challenge it. The best practice is to document the reasoning for the model selection in the estimate notes so the choice is defensible if questioned.

Where can I learn more about the 2026 Xactimate labor efficiency update?

Verisk has published webinar content covering the updated labor efficiencies architecture in detail. The on-demand webinar is the authoritative source for the methodology and selection criteria. Operator-level training providers have also begun including the new tier in their X1 curricula.

Xactimate offers three certification levels that progressively cover the platform’s depth. For restoration operators staffing an estimating function, knowing which level each role actually needs is the difference between an over-trained team that costs too much and an under-trained team that produces inconsistent estimates. This guide breaks down what each level covers, what it costs, and how to think about certification across roles.

For broader context on how Xactimate fits into restoration operations, see our restoration pricing and estimating master guide.

Level 1 — Fundamentals

Level 1 covers the foundational use of Xactimate: navigation, project setup, creating estimates, adding line items, and basic sketching. It is designed for users who are new to the platform or want to solidify the fundamentals.

For restoration teams, Level 1 is the right baseline for anyone who touches an estimate at any stage — field techs who capture initial sketches, project managers who review estimates, and ownership who needs to read estimates intelligently. The certification establishes a shared vocabulary across the team and prevents the most common usage mistakes.

Level 2 — Proficiency / Power User

Level 2 builds on Level 1 and goes deeper into the more advanced platform capabilities — complex sketching, custom price lists, advanced reporting, and platform-level configuration. It is the right target for the team members who actually build estimates daily.

For most restoration companies, Level 2 should be the standard for senior estimators, project managers responsible for estimate sign-off, and anyone who configures price lists or custom rules for the company. The depth of Level 2 is what separates an estimator who builds defensible, complete estimates from one who produces work that triggers TPA reductions.

Level 3 — Mastery

Level 3 is reserved for the most complex scopes and is described as appropriate for veteran insurance adjusters with years of field experience handling the most complicated claims. The certification covers the full depth of the platform and the most nuanced estimating scenarios.

For most restoration companies, Level 3 is overkill for the standard estimating workflow. The exception is companies that handle large-loss commercial work, work as TPA program subcontractors with audit responsibilities, or operate as third-party estimating services. For those use cases, Level 3 represents a meaningful credential.

What the Exams Look Like

Each certification level requires passing an exam administered by Verisk. The passing score is 70 percent. A current Xactimate license is required to take the exams. Once achieved, certification is valid for two years before renewal is required.

The two-year renewal cycle matters for staffing planning — certifications are not lifetime credentials, and budgeting for re-certification every two years is part of running a properly trained estimating team.

What Certification Costs

Verisk offers training and exam options directly through its training platform. Third-party training providers also offer Xactimate Level 1 and Level 2 certification preparation, often bundled together. Pricing through major third-party providers tends to land around $650 for combined Level 1 and Level 2 training, with regional variation.

For operators staffing multiple estimators, building a relationship with a single training provider and running team-wide certification cycles is often more cost-effective than ad hoc individual training. Some providers offer group rates and customized training for restoration-specific scopes.

How to Think About Certification ROI

The return on certification investment is not the credential itself — it is the reduction in estimating mistakes, audit reductions, and re-work that comes from a properly trained team. A single avoided $5,000 audit reduction pays for a team’s annual training budget several times over. Companies that under-invest in certification consistently leave more money on the table than they save in training cost.

Recommended Certification Map for Restoration Teams

A practical certification map for a restoration company:

• Field techs and admin staff — Level 1 baseline, refreshed every two years
• Senior estimators and project managers — Level 2 standard, refreshed every two years
• Lead estimator / estimating manager — Level 2 minimum, Level 3 if handling large-loss commercial work
• Owner / executive — Level 1 understanding to read and review estimates intelligently

Frequently Asked Questions

How many Xactimate certification levels are there?

There are three certification levels: Level 1 (Fundamentals), Level 2 (Proficiency / Power User), and Level 3 (Mastery). Each level builds on the previous one, but you do not have to take them in sequence — a user can pursue Level 2 without holding Level 1.

What score is required to pass an Xactimate certification exam?

The passing score is 70 percent. A current Xactimate license is required to take the exam. Once passed, the certification is valid for two years before renewal is required.

How much does Xactimate certification training cost?

Pricing varies by provider. Third-party providers commonly offer combined Level 1 and Level 2 training in the $650 range, with regional and seasonal variation. Verisk also offers training and exam options directly through its platform. For up-to-date pricing, check the Verisk training site or your preferred third-party provider.

Which Xactimate certification level do my estimators need?

For most restoration companies, Level 1 is the right baseline for anyone who touches an estimate, and Level 2 is the standard for daily estimators and project managers. Level 3 is appropriate primarily for large-loss commercial estimators or third-party estimating professionals.

How often do I need to renew Xactimate certification?

Certifications are valid for two years. Renewal requires re-testing at the same level. Plan the recertification cycle into your annual training budget and stagger renewals across team members to avoid bunching the workload.

Field measurement has historically been the slowest step in restoration estimating. A tech walks the loss with a tape measure or laser, jots down dimensions, returns to the office, and re-keys everything into Xactimate before the estimate can begin. Xactimate Sketch AR collapses that workflow by moving the measurement and initial sketch into the field, on a mobile device, with cloud sync to the office.

For broader context on how Xactimate fits restoration operations, see our restoration pricing and estimating master guide.

What Sketch AR Does

Sketch AR uses the camera and motion sensors on a tablet or phone to take measurements as the user walks through the loss site. The output is a 2D sketch with dimensions captured directly from the field, plus optional 3D cutaway views that help visualize the interior layout. The data syncs to the cloud and is available on the desktop estimate immediately.

The headline benefit is time. Field measurement that previously took 30 to 60 minutes per loss can be completed in 10 to 20 minutes with Sketch AR, and the office no longer needs a separate sketching step before the line item work begins.

The Mobile-First Restoration Workflow

The mobile-first workflow Sketch AR enables looks like this on a typical water loss:

• Arrival — tech opens the X1 mobile app and creates the estimate shell
• Walkthrough — tech runs Sketch AR through each affected room, capturing dimensions and damage photos tied to specific rooms
• Initial line items — tech adds preliminary line items for obvious scope (extraction, demo, equipment placement)
• Sync — estimate uploads to the cloud before the tech leaves the site
• Office completion — estimator opens the same estimate on desktop, refines line items, runs rules check, prepares for submission

Companies that adopt this workflow consistently report 30 to 50 percent compression in time from loss to estimate submission. That speed flows directly into faster cash flow and improved TPA scoring.

When Sketch AR Is the Right Tool

Sketch AR is well-suited for typical residential interiors with reasonable lighting, distinguishable wall edges, and accessible spaces. It is the right default for most water loss, mold, and partial fire jobs in homes and small commercial spaces.

It is less well-suited for: heavily damaged spaces where wall edges are obscured, dark or smoke-filled environments where the camera cannot track, very large open spaces with limited reference features, or any job requiring precision measurement for dispute defense (where traditional measurement should still be used as a verification step).

Training and Adoption

The technical learning curve on Sketch AR is short — most field techs are productive within a single training session. The harder change is workflow: moving the team from “measure on site, sketch at the office” to “sketch on site, refine at the office” requires deliberate process change.

The most common adoption failure is leaving the workflow optional. Teams that allow some techs to sketch on site and others to defer to office sketching never realize the speed benefits. Standardizing on the mobile-first workflow as the company default is the difference between marginal improvement and dramatic cycle-time compression.

Equipment and Device Considerations

Sketch AR works best on modern tablets with strong motion sensors and good cameras. iPads with LiDAR sensors produce particularly clean tracking. Spec out devices for the field team based on actual job conditions — a $400 tablet that struggles in low light produces worse measurements than a $900 tablet that handles real conditions.

Where Sketch AR Fits in the Larger X1 Workflow

Sketch AR is one of several X1 capabilities that together produce the field-to-office continuity that defines the modern Xactimate workflow. It pairs naturally with cloud-synced estimates, the Line Item Advisor for quick line item suggestions, and customizable rules that catch missed scope items at the point of entry. None of these features stand alone — they reinforce each other.

Frequently Asked Questions

What is Xactimate Sketch AR?

Sketch AR is the augmented-reality measurement and sketching feature in the Xactimate mobile app. It uses the device camera and motion sensors to capture room dimensions and produce a 2D sketch in the field, with optional 3D cutaway views. The output syncs to the cloud and is available on the desktop estimate immediately.

How accurate is Sketch AR?

Sketch AR is accurate enough for most residential interior measurements when conditions allow for clean camera tracking. For high-precision requirements (insurance disputes, large commercial losses), traditional measurement is still recommended as a verification step. Devices with LiDAR sensors typically produce cleaner results than camera-only devices.

What kind of device do I need for Sketch AR?

A modern tablet or phone with a good camera and motion sensors. iPads with LiDAR are particularly well-suited because the dedicated depth sensor improves tracking. Field teams should standardize on capable hardware rather than mixing devices that produce inconsistent results.

Can Sketch AR replace traditional measurement entirely?

For typical residential interior work in good conditions, Sketch AR can serve as the primary measurement method. For high-stakes jobs, large commercial spaces, dark or heavily damaged environments, or any situation that may end up in dispute, traditional measurement should still be used as either the primary method or a verification step.

How long does it take to train field techs on Sketch AR?

The technical training is short — most techs are productive within a single training session. The harder change is operational: standardizing the team on a mobile-first workflow rather than leaving it optional. Allow two to four weeks for the new workflow to become muscle memory across the team.

Xactimate is precise enough that small estimating mistakes show up clearly when the invoice closes out. The platform has roughly 17,000 line items, and the difference between the operators who consistently get paid in full and the operators who absorb chronic reductions is usually a small number of repeating mistakes. This article catalogs the mistakes that show up most often in restoration estimate audits and how to fix each one.

This article assumes you are familiar with the broader Xactimate workflow. For that context, see our restoration pricing and estimating master guide.

Mistake 1: Picking the Wrong Code from a Similar-Looking Group

Xactimate often has multiple line items that look similar but apply to different scopes. Drywall repair, drywall replacement, and drywall hang/finish are three different items with three different prices. The Line Item Advisor in X1 helps surface the right code, but estimators who default to the first match they see consistently choose codes that under-bill the actual work.

The fix is discipline: read the line item description before adding it, and use the Advisor’s suggestions when working on unfamiliar scope.

Mistake 2: Under-Counting Equipment Days

Equipment days are the most common source of audit reductions on water damage jobs. The pattern: the estimator counts contract days from project start to project close, but the audit counts only the days the equipment was physically on site per the daily monitoring log. Missing log entries mean missing days.

The fix is operational: daily monitoring logs must be completed daily, with equipment counts and moisture readings, and equipment placement and removal must be photographed for documentation.

Mistake 3: Missing Antimicrobial on Cat 1 Losses

Antimicrobial application on Cat 1 water losses is sometimes treated as optional, but the IICRC S500 standard supports its use in many Cat 1 scenarios — especially when there is any risk of category escalation, when affected materials cannot be fully dried, or when the response time means microbial growth is a real risk.

Skipping antimicrobial on Cat 1 losses out of a vague sense that “it might get cut” leaves real billable scope off the estimate. The fix is to document the reasoning for the antimicrobial line in the estimate notes.

Mistake 4: Single Air Scrubber for Multi-Room Jobs

The pricing matrix supports multiple air scrubbers when the affected area justifies them. Single-scrubber estimates on multi-room losses are routine, and they routinely under-bill the equipment scope. The fix is to scrubber-count by room and document placement on the equipment log.

Mistake 5: Skipping Containment on Fire Cleanup

Containment line items are routinely skipped on fire cleanup estimates because the estimator focuses on visible cleaning work. But proper fire cleanup requires HEPA negative air containment to prevent soot redistribution into adjacent unaffected areas. Skipping containment in the estimate produces work that either gets done un-billed or causes secondary contamination claims.

Mistake 6: Missing the Second Floor When Water Migrated

Water rarely stays on one floor. Estimates that scope only the floor where water originated routinely miss legitimate scope on the floor below (where ceiling damage is common) or above (where water can wick up baseboards). The fix is a complete walkthrough of the entire structure on intake, not just the affected room.

Mistake 7: Outdated Local Price List

Xactimate pricing updates monthly. Estimating templates that have not been refreshed against the current price list are systematically under-billing on items where prices have moved. The fix is a monthly refresh ritual: when the new price list drops, refresh the templates.

Mistake 8: Generic Notes That Cannot Defend the Scope

Estimate notes that say “per IICRC standards” without referencing the specific standard, scope item, or category provide no defense in audit. Notes that say “Cat 2 water loss per S500, antimicrobial applied per protocol due to documented contamination evidence (photos attached)” defend almost any scope item.

Mistake 9: Wrong Labor Efficiency Model

Now that Xactimate has three labor efficiency models as of February 2026, choosing the wrong one mis-prices the labor by 10 to 25 percent. The new Large Restoration/Remodel tier should be used for mid-sized multi-trade work that previously got force-fit into one of the two prior models.

Mistake 10: Lump-Sum Estimates for Cash Jobs

Lump-sum cash estimates feel simple but consistently under-price the work because the estimator forgets line items that would have been included in an itemized scope. The fix is to always build cash estimates itemized in Xactimate, then optionally summarize for the customer if a lump-sum presentation is preferred.

Frequently Asked Questions

What is the most common Xactimate mistake on water damage jobs?

Under-counting equipment days. The pattern is estimating contract days while the audit counts only documented on-site days from the daily monitoring log. The fix is rigorous daily logging with equipment counts and moisture readings, plus photo documentation of placement and removal.

How many line items does Xactimate have?

Approximately 17,000 line items in the standard library. The Line Item Advisor in X1 surfaces appropriate codes based on context, which reduces the cognitive load of finding the right code without defaulting to the first plausible match.

How often should I update my Xactimate estimating templates?

Monthly, in line with the Verisk price list update cycle. Templates frozen at older pricing produce estimates that get reduced on submission because they do not reflect the current published research.

What kind of estimate notes hold up to TPA audit?

Notes that reference specific standards (IICRC S500, S520, S700), specific category and class documentation, specific scope decisions and the evidence supporting them, and photo references where applicable. Generic “per industry standard” notes provide no defense.

Does the new 2026 labor efficiency model affect my older estimates?

No. The Large Restoration/Remodel option applies to estimates built going forward. Estimates already submitted under the prior two-model architecture are not retroactively affected. New estimates should evaluate which of the three models best fits each job.