--- title: "How to Read an Xactimate Estimate" slug: "xactimate" description: "If you have filed a property insurance claim, you will likely receive an estimate written in Xactimate. It may come from your insurance carrier’s adjuster, an independent adjuster, a contractor, or from licensed public adjusters like the team at Loti. For many homeowners, this document is confusing at first glance. It contains line items, codes, measurements, and pricing calculations that can feel technical and impersonal. However, understanding how to read an Xactimate estimate is one of the most important steps in managing your claim effectively. This guide explains what it is, how it is structured, and what to look for." updated: 2026-03-02T21:48:04Z published: 2026-03-02T21:48:04Z canonical: "rallybacks.loti.com/xactimate" --- > ## Documentation Index > Fetch the complete documentation index at: https://rallybacks.loti.com/llms.txt > Use this file to discover all available pages before exploring further. # Xactimate # How to Read an Xactimate Estimate ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Xactimate 1.webp) If you have filed a Property Insurance Claim, you will likely receive an estimate written in Xactimate. It may come from your insurance carrier’s adjuster, an independent adjuster, a Contractor, or from licensed public adjusters like the team at Loti. For many homeowners, this document is confusing at first glance. It contains line items, codes, measurements, and pricing calculations that can feel technical and impersonal. However, understanding how to read an Xactimate estimate is one of the most important steps in managing your claim effectively. This guide explains what it is, how it is structured, and what to look for. ## What Is Xactimate? Xactimate is estimating software widely used in the insurance and restoration industries. It provides standardized pricing for labor and materials based on geographic region and market conditions. It is not an insurance Policy. It is not a coverage decision. It is a pricing tool used to calculate the cost of repairing, replacing, or cleaning damaged property. Your insurance carrier may generate an Xactimate estimate to determine what they believe the repair should cost. Likewise, public adjusters or contractors may use Xactimate to produce their own version of the scope and pricing. It is common for more than one Xactimate estimate to exist in a single claim. ## How an Xactimate Estimate Is Structured An Xactimate estimate breaks your claim into detailed components. Instead of simply saying “Kitchen repair,” it itemizes each task required to restore the space. You will typically see: - Room by room organization - Line item descriptions for each repair task - Quantity and unit measurements - Pricing per unit - Depreciation calculations - Totals at the bottom of each section The estimate is meant to represent the full Scope of Work required to return your property to its pre loss condition. ## How Costs Are Broken Apart An Xactimate estimate usually separates costs into categories such as: ### 1. Demolition and Tear Out Removal of damaged materials, debris hauling, and disposal. ### 2. Cleaning and Mitigation Smoke cleaning, water extraction, drying equipment, surface cleaning, and deodorization. ### 3. Repairs and Reconstruction Framing, Drywall, flooring, cabinetry, painting, roofing, electrical, Plumbing, and Finish work. ### 4. Specialty Items Custom features, high end materials, specialty finishes, or items requiring detailed documentation. Each task is listed individually so that labor and materials are priced separately and transparently. This structure allows the estimate to adjust if scope changes or supplements are needed. ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Xactimate Sketch.webp) ## Understanding the 2D Sketch or Floor Plan One of the most important parts of an Xactimate file is the 2D drawing, often called the “sketch.” This is a digital floor plan of the affected areas of your home. It includes: - Room layout - Wall lengths - Ceiling heights - Openings such as doors and windows - Total square footage calculations The sketch is not decorative. It drives the math behind the estimate. For example: - Wall square footage determines drywall and paint quantities - Ceiling area affects Texture and repainting costs - Flooring square footage impacts material and labor totals If the sketch measurements are incorrect, the pricing that flows from those measurements will also be incorrect. ## Key Sketch Terms Explained You may see terms such as: **Area** The total square footage of a room. **Perimeter** The total linear footage around the room. **Wall Surface Area** The calculated square footage of walls, often adjusted for doors and windows. **Ceiling Height** Used to calculate wall area and certain labor factors. **Openings** Doors, windows, or other cutouts that affect material quantities. These measurements feed directly into the line item quantities listed in the estimate. ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/ChatGPT Image Mar 2, 2026, 01_02_37 PM.webp) ## Replacement Cost vs. Actual Cash Value Most Xactimate estimates will show: **RCV (Replacement Cost Value)** The full cost to repair or replace before depreciation. **Depreciation** The Deduction applied based on age and condition. **ACV (Actual Cash Value)** The depreciated amount often paid initially. Understanding where depreciation is applied helps explain why the first payment may be lower than the total estimate. ## Why Two Xactimate Estimates May Differ It is common for estimates prepared by an insurance carrier and a Public Adjuster to differ. Differences often arise from: - Scope omissions - Measurement discrepancies - Line items that were included or excluded - Code upgrade considerations - Material quality assumptions - Labor complexity factors The software is the same. The interpretation and scope may not be. ## What Homeowners Should Review Carefully When reading your Xactimate estimate, focus on: - Are all damaged areas included? - Do the room measurements match reality? - Are materials listed consistent with what existed before the loss? - Is Overhead and Profit included if multiple trades are required? - Does the estimate reflect current rebuild costs? An Xactimate file is not just paperwork. It is the financial blueprint of your rebuild. ## Wrap-Up An Xactimate estimate can feel technical, but it is ultimately a structured breakdown of your recovery costs. When you understand how it works, you gain clarity about what is included, what may be missing, and how your payments are calculated. Whether the estimate was created by your insurance carrier or by licensed public adjusters working on your behalf, reading it carefully is one of the most important steps in protecting your outcome. Refers to a broad set of policies covering real and personal property coverage. This includes homeowners insurance, flood insurance, renters insurance and more. A formal request made by the policyholder (you) to your insurance company for coverage or payment for a covered loss. A person or company responsible for construction work. This is the legal contract between you (the insured) and your insurance company (the insurer). The primary purpose of this contract is to make your accidental loss financially palatable in exchange for a pre-determined fee (your premium). Your personal property and associated items generally lose value over time due to age, use and general wear and tear. Depreciation is the percentage of value lost since you first purchased the item. Some items depreciate faster than others - such as TVs - and other items don’t depreciate at all - like antiques. We calculate this percentage automatically for you based on typical categories and use, but this value can be easily edited to account for unique items and situations. A detailed document specifying the work to be performed, including tasks, materials, and timelines. The process of tearing down existing structures. The skeleton or structure of a building, typically made of wood or steel. Panels used to create interior walls and ceilings. The system of pipes and fixtures that supply water and remove waste. The top coat that seals a material and can vary from matte to glossy. A scaled diagram showing the arrangement of rooms, doors, windows, and other features of each floor. The overhead interior surface that covers the upper limits of a room. The surface quality of a material, perceived through touch or visual appearance. An expense that can be subtracted from gross income to reduce taxable income. Also known as a private adjuster, public adjusters are hired by you as a homeowner to represent your own interests regarding your claims. These can range from individuals to large firms and vary in cost but usually command 10-20% of your total claim.