How to Write an Xactimate Estimate: Create Accurate Restoration Estimates in 6 Steps

Xactimate is the most widely used estimating software in North America for insurance and restoration. If you’re in the restoration business or you’re just getting started, chances are that you’re getting ready to create an estimate within the software.

This is an introductory guide for writing an estimate in Xactimate, whether you’re new to the industry or want a refresher. We’ll familiarize you with the estimate creation process and equip you with everything you’ll need to get started.

What you’ll need before you start writing the estimate

The information you’ll need on hand when building the estimate includes:

Detailed scope of work: the areas affected by the damage and an understanding of the required repairs or replacements.

Visual documentation: visual documentation of the damage taken with a 360˚ camera or LiDAR device to reference and justify the line items in the estimate.

Accurate property measurements: room dimensions, ceiling heights, unique structural details.

Material specifications: the quality and type of materials needed for repair or reconstruction.

Damage assessment notes: The type and extent of damage, including any secondary issues such as mold growth or structural weakening.

Insurance policy information: coverage limits, deductibles, and specific requirements the insurance company may have.

Set up the project

Here’s how to start the estimate in Xactimate step-by-step, whether you’re using Xactimate online or Xactimate for desktop.

Open a new project in Xactimate

In Xactimate for desktop, you may see a list of projects on Local, and others viewable when you select Cloud. Local will show projects downloaded on your device, and cloud will show available projects.

To create a new project, navigate to the sidebar on the left side. Then, to add a new project, select Local → New Project.

Once you fill out the necessary fields, you’ll need to ensure the listed profile is correct or choose the right one, then select Create.

Enter project details

Your Project will include different sections: Claim Info, Estimate, Photos, Documents, Tools, and Complete.

📚 Resource: Navigating Xactimate desktop

If you’re using Xactimate online,you may see a list of projects once you sign in. Select the project you need by double clicking and Xactimate will open that project in the Xactimate online Estimate Writer. You can also create a new project in Xactimate online by clicking “+ New project”.

📚 Resource: Navigating Xactimate online

Then, in either version of Xactimate, you’ll enter the claim information. This includes things like the client’s name, address, and claim number. Then, you’ll need to associate a price list with your estimate.

Xactware has created price lists across North America where they research and learn the cost of labor for all of the various trades. Select the price list for your area along with the address, information, project parameters, client policy, etc. Then, you’ll move on and create a sketch.

Create the sketch in the Sketch Tool

Most insurance companies require sketches to be accurate within two inches. It’s more the approximate side of things here –– we’re not creating full CAD drawings.

Sketches will range from very simple (just one or two rooms) to extremely complicated (a roof with many different angles). Once you’ve sketched each room or area for the project, you’ll be ready to estimate in each one of those objects.

If you’re creating a sketch manually, here’s what you’ll need to do:

• Open the Sketch Tool and create a floor plan
• Add rooms and specify dimensions
• Insert structural elements (walls, doors, windows)
• Create levels if the project involves multiple floors
• Save and exit the Sketch Tool

📚 Resource: Check out Xactware’s Xactimate online Sketch help docks if you get stuck

For a more accurate, precise sketch and to save yourself hours of time, consider using DocuSketch. The DocuSketch DS1 camera captures a virtual walkthrough of the job site, and you can order a sketch directly through DocuSketch. You can document the entire space and order the highly accurate sketch in less than an hour.

Overall, DocuSketch is about 7x faster than the manual method.

---

Let DocuSketch write the estimate for you

Get a complete floor plan and estimate for mitigation and rebuild — often within one business day — all through DocuSketch. This helps your claim cycle time go from many days to hours.

Each estimate ordered through DocuSketch goes through askAime™’s estimate review process, which assists people in meeting carrier expectations and ensures that no line items are missed.

Let’s chat →

---

Add line items in Estimate Items

Navigate to the Estimate tab and then select Estimate Items. When you create an estimate, you’ll add line items (a specific entry that details an individual material, task or service) in the Estimate Items tab. Then, select the room in which you need to add line items.

📚 Resource: How to Add a Line Item in Xactimate Online & Desktop

In order to save yourself time, estimating expert Alena Wilson recommends not inputting line items by using the main search bar. “It will take you years,” she says.

Instead, Alena recommends using the Cat (category) code and Sel (selector) code fields. “If you can memorize [these codes],” she says, “you’re going to write estimates that will fly off of your desk.”

Here’s how to add a line item the faster way, step-by-step:

1. Select the Cat dropdown menu
2. Select the trade you’re looking for
3. Select the Sel box, and hit enter or space
4. Search for the line item you need and select it

Macros, or pre-made lists of line items, can also speed up the estimate process.

Apply adjustments and finalize costs

The final steps of building the estimate include:

• Add Overhead and Profit (O&P) margins. These are additional costs typically added to cover a contractor’s overhead expenses and profit. This is usually a percentage of each line item. Determine the amount by referring to industry standards.
• Review the estimate summary for accuracy. Take a look over the summary to ensure you have key information correct, like your price list, claim number, and the client’s information.
• Verify tax rates and other region-specific factors. Ensure that all additional costs added line up and that anything region-specific is indeed set to the correct region.

Review the estimate

Now, it’s time to double-check the estimate for completeness and accuracy. Aside from looking the estimate over yourself to spot any errors, it’s a good idea to follow at least one other review process as well. We recommend having a peer review your estimate, using a third-party software for review, or leveraging an automated review solution.

📚 Recommended reading: How to Read an Xactimate Estimate: Guide for Restoration Contractors & Homeowners

Peer review

Have another peer in the office review your estimates. If there are other experts sitting around you, you could even swap estimates and review each other’s. You’ll both benefit from an accurate and improved estimate, which means less friction during the review process. Even if you’re already a good estimator, getting a second opinion will help you strengthen your skillset even more.

Third-party software review

Use a third-party estimating solution like DocuSketch Estimating. DocuSketch’s professional, experienced in-house team will ensure you receive estimates that meet your specific requirements.

Automated review

Use a solution like askAime™ automated review. It will go through your estimate and look for what you missed, what you may have over-scoped, and help everybody arrive at a reviewed and approved estimate quicker with less friction in the middle.

Review your estimate Improve the quality of your estimate through smart automation and advanced technology. Ensure that it’s not only precise but also aligns with market conditions in your location and the latest carrier requirements. Try askAime™ →

Common places you might get stuck

Often, people who are new to writing estimates deal with the classic case of “you don’t know what you don’t know.” Essentially, it’s easy to miss key details early on.

For example, think of the primary bathroom in a house. You add in the vanity and the sink to the estimate and it feels complete. In reality, there’s many more line items that complement and are part of the process of installing that vanity. And some vanities need them and some don’t.

The estimator might have missed: filter/scribe boards, type of finish, pulls, etc. Those seemingly small details could leave hundreds of dollars on the table.

Finalize the estimate

Typically, once you’ve finalized the estimate, you’ll generate the report and send it over to the insurance adjuster. The adjuster will review the estimate and, if there are no concerns, make an offer for the amount of funds needed to settle the claim.

Get started with your estimate

With practice, writing Xactimate estimates will become quick and easy – especially if you start to memorize your category selector codes. And if you’re looking to speed up the process even further, check out DocuSketch and askAime™, which will help you create precise estimates in a fraction of the time.