We Speak the Insurance Company Language. Fluently.
Xactimate is the tool insurance companies use to estimate your claim. We have been Level 2 certified, and we know the line items carriers routinely miss.
Why Xactimate Expertise Changes Your Settlement
Insurance company adjusters use Xactimate to prepare their damage estimates. The estimate determines what the insurance company pays. An adjuster who misses line items, applies incorrect unit costs, or omits required code upgrades produces an estimate that undervalues your claim. The difference between an accurate estimate and an incomplete one can be tens of thousands of dollars.
DCS has been Level 2 Xactimate certified, the same certification level used by professional insurance adjusters. We review insurance company estimates line by line, identify every missing item and incorrect cost, and prepare detailed supplemental estimates that reflect the true cost of repairs. We do not guess. We document, measure, and calculate.
Common items that are missed or undervalued in insurance company estimates include code-required upgrades (Ordinance or Law), overhead and profit for general contractor coordination, proper tear-off and disposal costs, matching requirements for undamaged adjacent materials, and the full scope of interior damage from water intrusion. We know where to look because we understand how claims are typically evaluated and where damage is commonly overlooked.
How an Xactimate Estimate Is Built, Line by Line
Xactimate is not a guess or a rough square-foot multiplier. It is a structured methodology. Understanding how the estimate is assembled is the key to understanding where carrier estimates go wrong, and how a defensible estimate is constructed.
1. The Sketch and the Measurements
Every Xactimate estimate begins with a sketch of the structure. The sketch establishes the dimensions that drive nearly every quantity in the estimate: wall surface area, floor area, ceiling area, room perimeter, and, for roofs, the number of squares, the pitch, and the ridge, hip, valley, and eave lengths. A sketch that is too small, omits a room, or uses the wrong ceiling height understates the entire estimate downstream. We verify the sketch against field measurements and photographs.
2. The Line Items and Units of Measure
Damage is translated into line items drawn from the Xactimate database, each with a defined unit of measure: square foot (SF) for surfaces, linear foot (LF) for trim and edges, square (SQ) for roofing, each (EA) for fixtures, and so on. Each line item bundles material, labor, and where applicable equipment. The right line item matters: removing and replacing drywall is a different line item than detaching and resetting it, and using the cheaper option where the more complete one is warranted understates the loss.
3. The Price List
Each line item is priced from a regional price list that Verisk publishes by geographic area (tied to ZIP code) and updates on a regular cadence. The price list reflects local material, labor, and equipment costs at a point in time. Using a stale price list, or one for the wrong region, produces unit costs that no contractor will honor. We confirm the estimate uses the correct, current price list for the loss location and date-of-loss period.
4. Tax, Overhead, and Profit
After material, labor, and equipment are totaled, sales tax is applied to materials, and on multi-trade jobs general contractor overhead and profit (commonly 10% and 10%) is applied to the line items the GC coordinates. Whether O&P is owed, and on what base it is calculated, is one of the most frequently disputed elements of an estimate.
5. RCV, Depreciation, and ACV
The total before depreciation is the Replacement Cost Value (RCV). The carrier may subtract depreciation to arrive at Actual Cash Value (ACV), and on a replacement-cost policy the withheld depreciation is typically recoverable once repairs are completed and documented. We scrutinize how depreciation was calculated, whether it was improperly applied to labor, whether the useful-life assumptions are reasonable, and what portion is recoverable.
What Our Xactimate Services Include
Full Property Damage Estimates
Complete, line-item Xactimate estimates for all types of property damage including structural, roofing, interior, and contents.
Insurance Estimate Review
Line-by-line review of the insurance company Xactimate estimate to identify missing items, incorrect costs, and omitted code upgrades.
Supplemental Claim Preparation
Preparation and submission of supplemental claims for damage that was missed, undervalued, or discovered after the initial settlement.
Ordinance and Law Documentation
Documentation and estimation of code-required upgrades that must be included in the repair scope under Ordinance or Law coverage.
Overhead and Profit Analysis
Analysis and documentation of general contractor overhead and profit, which is frequently omitted from insurance company estimates on complex claims.
Matching and Uniformity Claims
Documentation of matching requirements when undamaged adjacent materials must be replaced to achieve a uniform appearance after repairs.
Why DCS for Xactimate Estimating
DCS has been Level 2 Xactimate certified. This is the professional standard for insurance claim estimating.
DCS personnel include former insurance carrier adjusters with carrier-side claims handling experience from 2010 to 2017. We know how insurance company estimates are prepared and where they fall short.
We use current Xactimate pricing databases that reflect actual local material and labor costs.
We document every line item with photographs, measurements, and written justification.
We prepare estimates that are defensible and supported by evidence, not just numbers on a page.
We work on contingency for full public adjusting representation, or on a fee basis for standalone estimating services.
Code Upgrades, Matching, and Overhead and Profit: A Deep Dive
These three categories are where Xactimate estimates most often diverge between the carrier and the policyholder. Each one is grounded in policy language, building code, and industry standards. Each one is also frequently misapplied or omitted by the carrier.
Code Upgrades (Ordinance or Law Coverage)
When a covered loss damages enough of a structure to trigger a permit or repair, current building code applies to the repair work, not the code that was in force when the structure was originally built. The cost difference between a like-kind-and-quality repair and a code-compliant repair can be substantial.
Common code upgrades on a residential roof claim include: decking thickness and span requirements, fastener pattern (six-nail vs. four-nail), drip edge, ice and water shield in valleys and eaves, ventilation (intake and exhaust), and step flashing. On a fire claim, code upgrades can include: electrical service entrance, smoke detectors and CO detectors, GFCI outlets, egress windows in bedrooms, and energy code envelope upgrades.
Ordinance or Law coverage is typically optional and limited (often 10% to 25% of dwelling coverage). Without it, the policyholder may pay out of pocket for code-required work. With it, the carrier owes the increased cost of compliance. We confirm whether the policy includes Ordinance or Law coverage, identify the applicable code requirements, and price the upgrades into the Xactimate scope.
Matching and Uniform Appearance
When a partial loss requires replacement of materials, the replacement may not match the undamaged adjacent material, especially on roofs (color, granule profile, age weathering), siding (fade), tile (manufacturer or run discontinuation), and flooring (dye lot, plank size, finish).
Florida Statute §626.9744 specifically requires reasonable matching when the carrier repairs or replaces damaged property. The replacement must achieve a uniform appearance across the line, side, room, or other continuous area. In Texas, the analysis runs through the policy own "like kind and quality" or uniform-appearance language and the preloss-condition restoration standard.
When matching cannot be achieved with the partial-replacement scope, the matching requirement may extend to the rest of the line, side, room, or continuous area. We document matching issues with photographs of representative samples, manufacturer or supplier confirmation that the original material is no longer available, and pricing for the extended scope.
Overhead and Profit (O&P)
When a claim involves three or more trades (the so-called three-trade rule), a general contractor is typically required to coordinate the work, manage the schedule, source materials, and supervise the subcontractors. The industry-standard compensation for the GC role is 10% overhead and 10% profit on the line items the GC coordinates.
Carriers frequently omit or underpay O&P, arguing that fewer trades are involved than actually are, or that the policyholder will self-perform without a GC. We document the trades involved (e.g., demolition, framing, roofing, drywall, painting, electrical, plumbing, HVAC, flooring, cabinetry), justify the O&P inclusion under the three-trade rule, and price it into the Xactimate scope.
Some carriers also dispute the calculation method. The correct method on a multi-trade Xactimate estimate is to apply O&P to the line items the GC coordinates, not to subtract O&P that should have been included. We use the calculation method consistent with industry standard practice.
Scope Built to Recognized Restoration Standards
An estimate is only as good as the scope behind it. For water and fire losses, there are recognized, published industry standards that define how the work should properly be done. We build scope consistent with these standards so the estimate reflects a real, complete restoration, not a partial one.
Water: IICRC S500
The IICRC S500 is the consensus standard for professional water damage restoration. It defines the categories of water (from clean water to grossly contaminated) and the classes of water intrusion based on how much material is affected and how much water the materials have absorbed.
These distinctions drive scope: a Category 3 loss requires removal of porous materials that a Category 1 loss might not, and the drying equipment, duration, and antimicrobial application change accordingly. An estimate that treats every water loss the same under-scopes the serious ones.
Fire and Smoke: IICRC S700
The IICRC S700 is the standard for professional fire and smoke damage restoration. It informs what can be cleaned and restored versus what must be removed and replaced, the cleaning protocols for different smoke residues, odor remediation, and the handling of contents.
Smoke and soot damage frequently extends well beyond the rooms that burned. A standards-based scope captures the cleaning, sealing, and replacement that the carrier estimate often overlooks.
Where Carrier Estimates Commonly Fall Short
These are recurring patterns we see when we review a carrier Xactimate estimate. None of them are necessarily intentional, but each one reduces what the policyholder is paid. Knowing where to look is half the work.
Undersized or incomplete sketch
Rooms omitted, ceiling heights defaulted to a standard 8 feet when the actual ceilings are taller, or closets and hallways left out. Because area-based quantities flow from the sketch, a small sketch error scales across the whole estimate.
Stale or wrong-region price list
An out-of-date price list, or one for a neighboring market, produces unit costs that no local contractor will perform the work for. We confirm the correct, current price list for the loss location.
Omitted overhead and profit
Undercounting the trades involved to fall below the three-trade threshold, or assuming the homeowner will self-perform, to strip 20% off a multi-trade job that genuinely needs a general contractor.
Excessive or improper depreciation
Depreciating labor (which does not wear out), using unreasonably short useful-life assumptions, or applying depreciation where the policy does not allow it.
Missing code upgrades
Pricing a like-for-like repair when current building code requires more, while the policy carries Ordinance or Law coverage that would pay the difference.
No matching for adjacent materials
Replacing only the damaged section of a roof slope, siding side, or flooring run when the replacement will not reasonably match the undamaged adjacent material.
Wrong line item selected
Choosing detach-and-reset where remove-and-replace is warranted, or a lower-grade material line item than what was actually in place, to shave the unit cost.
Under-scoped tear-out and disposal
Omitting demolition, debris haul-off, dumpster fees, and the labor to properly remove damaged materials before the new work can begin.
Our Estimating Process
A defensible estimate is documented, measured, and built to a standard, not assembled from a desk.
Policy and Coverage Review
We review the declarations and policy form to confirm the coverages in play (dwelling, other structures, contents, Ordinance or Law, debris removal) and how depreciation and the deductible apply, so the estimate is built to the policy.
Field Inspection and Documentation
We physically inspect the loss, measure every affected area, and document conditions with photographs and notes. Hidden damage (behind walls, under flooring, in attics) is identified before it becomes a costly surprise.
Sketch and Scope
We build an accurate Xactimate sketch and translate the documented damage into a complete scope of repair, applying the recognized restoration standards for the loss type.
Pricing and Review
We price the scope from the correct, current regional price list, apply tax, code upgrades, matching, and general contractor overhead and profit where warranted, and review the estimate line by line for completeness.
Comparison and Supplement
If a carrier estimate already exists, we compare it line by line, document every gap, and prepare a supplement that justifies each addition with measurements, photographs, and the applicable standard or code.
Texas-First Statutory Framework Behind Xactimate Estimating
Xactimate estimating is grounded in policy language and statutory framework. Texas (DCS home base) and Florida statutes that touch property estimating, prompt-pay, public adjusting, matching, and the residual-market entities.
Texas (Home Base)
DCS Firm License #3134924
- TX Ins. Code Ch. 4102. Public adjusters. Caps PA fees at 10% of recovery for public adjusting work. Requires written contract on TDI-approved form. Three-business-day cancellation right.
- TX Ins. Code Ch. 542. Prompt Payment of Claims Act. Acknowledge / decide / pay deadlines, 18% statutory interest plus attorney fees on violations.
- TX Ins. Code Ch. 542A. Pre-suit notice for weather-related property claims. Attorney work; outside the public adjusting role.
- TX Ins. Code Ch. 2210 (TWIA). Texas Windstorm Insurance Association. Statutory wind/hail insurer of last resort for 14 designated coastal counties and parts of Harris County.
- TX Ins. Code Ch. 2211 (TFPA). Texas FAIR Plan Association. Statutory residential insurer of last resort, statewide availability for policyholders unable to obtain voluntary-market coverage.
- TX Ins. Code §541. Unfair Settlement Practices. Statutory cause of action; attorney work.
- License authority: Texas Department of Insurance (TDI).
- Statute of limitations: Generally 2 years for property claims (varies by policy and loss type).
Florida
DCS Firm License #W820363
- Fla. Stat. §626.854. Public adjusters. Caps PA fees at 20% of recovery for most claims, reduced to 10% during the first year following a state-declared emergency.
- Fla. Stat. §626.9744. Matching uniform appearance. Carriers must match the rest of the line, side, room, or other continuous area when repairing or replacing damaged property.
- Fla. Stat. §627.70131. Prompt-pay statute. Following 2022 reforms, the deadline to pay or deny most residential property claims was reduced to 60 days.
- Fla. Stat. §627.70132. Supplemental and reopened claims. Three years from date of loss; longer for hurricane claims.
- Fla. Stat. §627.7015. Mandatory mediation precondition for some residential property disputes.
- Fla. Stat. §624.155. Civil Remedy Notice (CRN). Attorney work; outside the public adjusting role.
- 2022 reforms (SB 2-D, SB 2-A). Eliminated one-way attorney fees for property claims; restricted Assignment of Benefits.
- License authority: Florida Department of Financial Services (DFS).
Important. This summary is general educational information, not legal advice. The application of any statute to a specific claim, the determination of whether a denial supports a statutory cause of action, and any pre-suit or litigation strategy are legal questions for a licensed attorney in your state. DCS Public Insurance Adjusters read and apply policy language in the ordinary course of adjusting (coverage parts, exclusions, endorsements, scope), but do not provide legal advice or pursue statutory remedies.
The Insurance Company Has an Expert. So Should You.
Do not let an incomplete estimate determine your settlement. Contact us for a free review of your insurance company estimate.
Related Services and Guides
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