Question #2: Are there instances you can think of where a contractor’s labor cost would be higher than what is listed in Xactimate? Do you see that happen often?ĭefinitely.
Both of these scenarios disregard the upper half of the pricing market that ranges from the median, all the way up to the upper price points of the market. One of the issues here is that insurance carriers will depend on Xactimate, which is usually misused, putting it well below median pricing or they will rely on contractors who are usually “lower market” contractors relating to price. They are usually “quantity” contractors who can sacrifice price – usually equating to quality – to perform the job. the contractor only sometimes use Xactimate to provide their costs, and generally use it incorrectly and 3. They have usually no interest in performing the work, 2. If an insurance carrier opts to bring in a contractor, it usually has complications of its own, such as 1. Will use contractors to provide cost proposals.Įstimating programs have to provide a median baseline for restoration costs. Hypothetical estimation software, like Xactimate or SybilityĢ. Typically, insurance carriers will utilize one of two methods when determining the cost of a claim:ġ. Question #1: Other than policy coverage specifics and damage photos is there anything other than Xactimate that an insurance company will use to determine how much an insurance company will payout on a claim? We asked Andrew Behrens, head of our internal Investigations Division and certified Xactimate Trainer, five key questions about Xactimate pricing to find out! Read to to see the answers and insight he provides on how contractors can get fairly paid. The carrier in question used “fair market pricing” in Xactimate to determine the labor amount but the contractor argued that the rates in the system are out of date and inaccurate.īut is Xactimate’s labor pricing actually fair? In a recent article, a contractor was publicly shamed after the insurance carrier refused to pay his labor cost and forced the policyholder to pick up the bill.
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