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183 terms used in insurance restoration, explained for practitioners.
A code within Xactimate that identifies what type of work is being performed - remove, replace, repair, clean, etc. Combined with the item code to create the full line item.
Actual Cash Value (ACV) is the current real-world value of damaged property, calculated by subtracting depreciation from the Replacement Cost Value (RCV). ACV determines the first check the homeowner receives on an insurance claim.
A person or entity added to a contractor's insurance policy to extend coverage. Property owners and general contractors often require this before allowing work to begin.
Additional Living Expenses (ALE) is the insurance coverage that pays the difference between a policyholder's normal living costs and the inflated costs of living elsewhere while their home is uninhabitable during covered repairs.
An adjuster is a licensed professional who inspects property damage and writes or reviews estimates for an insurance claim. Adjusters are classified into three types: staff adjusters (carrier employees), independent adjusters (contracted during catastrophe events), and public adjusters (representing the policyholder).
The maximum total amount an insurance policy will pay for all claims during a policy period, typically one year.
The government entity responsible for enforcing building codes and issuing permits in a specific area. Typically the city or county building department.
A high-velocity fan used in water damage restoration to promote evaporation from wet materials. Typically placed at a 45-degree angle against wet surfaces.
The collection and analysis of airborne particles to detect mold spores, asbestos, or other contaminants. Used in mold assessment and clearance testing.
An insurance policy that covers all causes of loss except those specifically excluded. Also called open peril or special form. Broader coverage than named peril policies.
The application of chemical agents to building materials during water damage restoration to prevent mold growth. Applied after cleaning and before drying is complete.
An appraisal clause is a provision in most property insurance policies that allows either the policyholder or the carrier to invoke a formal, binding appraisal process when they disagree on the value of a covered loss.
A formal request to invoke the appraisal clause in an insurance policy when the policyholder and carrier disagree on the value of a loss. Each side selects an appraiser, and a neutral umpire breaks ties.
An insurance appraiser is a professional appointed by either the policyholder or the carrier during the appraisal process to independently assess the value of a disputed insurance claim by comparing damage estimates and repair costs line by line.
A binding or non-binding dispute resolution process where a neutral arbitrator hears both sides and makes a decision on the claim amount. Faster and less expensive than litigation.
A premium asphalt shingle with a dimensional, layered appearance that mimics wood shake or slate. Heavier and more durable than 3-tab shingles with a longer warranty.
The most common residential roofing material in the United States, made from fiberglass mat coated with asphalt and mineral granules. Available in 3-tab and architectural styles.
Assignment of Benefits (AOB) is a legal agreement in which the policyholder transfers their insurance claim rights to a third party - typically the contractor or restoration company - allowing that party to file claims, negotiate, and collect payment directly from the carrier.
A bad faith claim is a legal action filed against an insurance carrier for unreasonably denying, delaying, or underpaying a valid insurance claim in violation of its contractual duty to act honestly toward the policyholder.
Betterment is a charge applied by the insurance carrier when repairs result in an upgrade over the property's pre-loss condition, such as code-required materials that did not exist on the original structure. Betterment is frequently disputed when the upgrade is mandated by current building code.
The process of securing a structure by covering broken windows, doors, or openings with plywood to prevent unauthorized entry and weather damage.
A type of property insurance that covers buildings under construction. Protects against damage to the structure, materials, and equipment during the construction process.
Official authorization from the local government to perform construction work. Required for most structural repairs, re-roofs, and significant renovations.
A carrier is the insurance company that underwrites the homeowner's policy, collects premiums, evaluates claims, and issues payments. In the restoration industry, 'carrier' is the standard term for the insurer - whether State Farm, Allstate, USAA, Travelers, or any other property insurance company.
Categories in Xactimate are the organizational structure that groups line items by trade or work area - including roofing (RFG), exteriors (EXT), plumbing (PLM), electrical (ELC), painting (PNT), and interior (INT). Category assignment directly affects O&P calculations and XactAnalysis review outcomes.
The specific event or peril that caused the damage in an insurance claim. Determining the cause of loss is critical because coverage depends on whether that peril is covered under the policy.
A document signed by the contractor and property owner confirming that all work specified in the contract has been completed satisfactorily.
A document issued by an insurance company proving that a contractor or business has active insurance coverage. Required by most property owners and general contractors before work begins.
A written agreement modifying the original scope of work, price, or timeline of a construction contract. Should be signed by both parties before additional work begins.
A metal cover installed over the top of a chimney to prevent rain, animals, and debris from entering. Also contains a spark arrestor in many designs.
The claims process is the end-to-end sequence from damage event to final payment, consisting of: first notice of loss (FNOL), adjuster inspection, scope of loss, initial ACV payment, repair work, supplement filing, depreciation release, and final settlement. The average residential claim takes 30-90 days to settle.
Post-remediation testing to verify that mold levels have returned to acceptable levels. Typically involves air sampling and visual inspection by an independent assessor.
The requirement that all construction work meets current local, state, and national building codes. Insurance claims may include code upgrade costs when repairs must bring the structure up to current code.
A code upgrade is repair work required to bring damaged property up to current building codes (IRC, IBC, or local amendments), even if the pre-loss condition did not meet those codes. Code upgrades are covered under most insurance policies but are frequently disputed by carriers as betterment.
A provision requiring the policyholder to insure the property to a certain percentage of its value (typically 80%). Failure to meet the requirement results in reduced claim payments.
A legal principle that reduces a claim payment based on the policyholder's share of fault for the damage. If the homeowner's deferred maintenance contributed to the loss, the payout may be reduced.
The process of cleaning, deodorizing, and restoring personal property damaged by water, fire, or smoke. Includes soft goods, electronics, documents, and furniture.
The Xactimate category for personal property items - furniture, electronics, clothing, and other movable items damaged in a loss.
Metal flashing embedded into masonry or a wall surface that covers the top edge of step flashing. Prevents water from getting behind the step flashing.
A peaked structure built behind a chimney or other roof obstruction to divert water around it. Prevents water and debris buildup that can cause leaks.
A deductible is the fixed dollar amount or percentage the policyholder pays out of pocket before insurance coverage applies. The deductible is subtracted from the first ACV payment, not from the depreciation release.
Equipment used in structural drying to remove moisture from the air. Commercial dehumidifiers process significantly more water per day than residential units.
A denied claim is an insurance claim that the carrier has rejected entirely, refusing to issue any payment. A denial is not the final outcome - it is the starting point for appeals, supplements with stronger documentation, public adjuster involvement, or the appraisal process.
Depreciation is the reduction in value of property due to age, wear, and condition. In insurance claims, depreciation is calculated per line item in Xactimate based on each component's specific age and expected useful life - not as a flat percentage across the entire claim.
A structural element that projects from a sloped roof, typically containing a window. Adds usable space and light but creates complex flashing details.
A vertical pipe that carries water from the gutter to the ground or drainage system. Proper sizing and placement prevents overflow and foundation damage.
An L-shaped metal strip installed along the edges of a roof to direct water away from the fascia and into the gutter system. Required by most building codes.
Dry-in is the roofing construction step between tear-off and final installation in which the exposed deck is protected with underlayment (synthetic felt or ice and water shield) to prevent water intrusion. Dry-in is a separate billable step with its own Xactimate line items.
The target moisture content for each material in a water damage restoration project. Set based on the material type and the equilibrium moisture content of unaffected areas.
The policyholder's obligation to assist the insurance company in investigating and settling a claim. Failure to cooperate can result in denial of the claim.
The policyholder's obligation to take reasonable steps to prevent further damage after a loss. This includes temporary repairs like tarping and water extraction.
Dwelling coverage (Coverage A) is the portion of a homeowner's insurance policy that covers damage to the physical structure of the home - including the roof, walls, foundation, and built-in appliances. Dwelling coverage has its own limit, separate from contents, other structures, and liability.
The lower edge of a roof that overhangs the exterior wall. Eaves direct water away from the siding and provide shade.
The installation of a temporary tarp over damaged roof areas to prevent water intrusion until permanent repairs can be made. Usually a separately billable line item in Xactimate.
A written amendment to an insurance policy that adds, removes, or modifies coverage. Also called a rider. Used to customize standard policies for specific needs.
The moisture level at which a building material is in balance with the surrounding environment. The target for structural drying.
A professional who calculates the cost of a construction or restoration project by quantifying materials, labor, and overhead. In insurance restoration, estimators typically work in Xactimate.
An ESX file is the native project file format for Xactimate, containing the complete estimate - including editable line items, pricing, sketch data, photos, and notes. ESX is the required format for submitting estimates through XactAnalysis to insurance carriers.
A formal, sworn statement requested by an insurance company during a claim investigation. Similar to a deposition, where the policyholder answers questions under oath about the claim.
A provision in an insurance policy that eliminates coverage for specific risks, hazards, or types of damage. Common exclusions include flood, earthquake, and normal wear and tear.
The horizontal board that runs along the lower edge of the roof, attached to the rafter tails. Supports the gutter system and provides a finished appearance.
Traditional asphalt-saturated paper used as roof underlayment. Available in 15-lb and 30-lb weights. Being replaced by synthetic underlayment in many markets.
The last inspection by the building department or AHJ to verify that all permitted work meets code requirements. Required before closing out a building permit.
Fire damage is property damage caused by fire, including structural damage from flames, smoke damage throughout the property, and water damage from firefighting efforts. Fire claims are among the most complex and highest-value residential restoration claims, typically involving 8-10 trades.
The process of restoring a structure damaged by fire, including demolition of unsalvageable materials, cleaning of soot and smoke damage, deodorization, and reconstruction.
First Notice of Loss (FNOL) is the initial report a policyholder files with their insurance carrier after property damage occurs. FNOL triggers the claims process, assigns a claim number, and starts the clock on all claim-related deadlines including supplement filing windows and depreciation recovery periods.
Sheet metal installed at roof transitions, penetrations, and intersections to direct water away from vulnerable areas. Common materials include aluminum, galvanized steel, and copper.
A fixed dollar amount deductible, such as $1,000 or $2,500, that applies regardless of the claim size or home value.
A roof design with two sloping sides that meet at a central ridge, forming a triangular shape at each end. The most common residential roof style.
A contractor who manages the overall construction project, coordinating subcontractors, materials, and schedules. The primary point of contact for the property owner.
Insurance that covers a contractor's legal liability for bodily injury or property damage caused to others during business operations.
A channel attached along the eave of a roof that collects and redirects rainwater to downspouts. Prevents water from pooling at the foundation.
Hail damage is property damage caused by hailstones to roofing, siding, gutters, HVAC units, and other exposed surfaces. Hail is the number one driver of residential property insurance claims in the United States, with annual insured losses averaging $10-14 billion (Insurance Information Institute).
A roof design where all sides slope downward to the walls. More structurally stable than gable roofs and better at resisting wind uplift.
Holdback is the industry term for recoverable depreciation - the portion of the insurance claim that the carrier withholds until the policyholder completes repairs and submits proof of completion. Holdback, depreciation holdback, and recoverable depreciation are used interchangeably.
A self-adhesive waterproof membrane applied to the roof deck in vulnerable areas like valleys, eaves, and around penetrations. Required by code in cold climates.
Ice dam damage is structural and interior damage caused when ice accumulates at the roof edge, preventing snowmelt from draining and forcing water under the shingles and into the building structure. Ice dam claims are among the most frequently denied claim types in residential insurance.
The Institute of Inspection Cleaning and Restoration Certification. The organization that sets standards for the cleaning and restoration industry, including water damage (S500) and mold (S520).
The legal obligation of an insurance company to compensate the policyholder for covered losses, restoring them to the financial position they held before the loss occurred.
The principle that insurance should restore the policyholder to the same financial position they were in before the loss, no better and no worse.
An independent adjuster (IA) is a claims adjuster who works on contract for the insurance carrier rather than as a direct employee. Independent adjusters are typically deployed during catastrophe events when the carrier's staff adjusters cannot handle the claim volume.
Labor cost is the workforce component of every Xactimate line item, calculated per unit (per square for roofing, per square foot for siding, per linear foot for gutters). Labor rates are based on Verisk's regional pricing databases, which are updated monthly.
A document signed by a contractor waiving their right to file a mechanics lien against the property. Often required before or upon receiving payment.
Line items are individual entries in an Xactimate estimate, each representing a specific material, labor task, or service with a selector code, description, quantity, unit of measure, and price from the Verisk regional database. A typical residential roofing estimate contains 30-50 line items.
Filing a lawsuit against an insurance company over a claim dispute. Typically a last resort after negotiation, appraisal, and mediation have failed.
Loss of use (Coverage D) is the insurance coverage that pays for a policyholder's additional living expenses when their home is uninhabitable during covered repairs. Loss of use is a separate coverage from the property repair estimate, with its own limit typically set at 20-30% of dwelling coverage.
A saved group of commonly used line items in Xactimate that can be inserted as a set. Speeds up estimate writing for repetitive scope items like a standard bathroom water loss.
Macros are pre-built sequences of line items in Xactimate that are inserted into an estimate with a single command. Macros reduce estimate creation time from approximately 3 hours to 45 minutes for a standard residential re-roof.
A material order is the process of ordering specific construction materials from a supplier based on the approved Xactimate estimate. Material order accuracy is critical for preventing job-site delays and ensuring materials match what the carrier approved and will pay for.
A legal claim against a property filed by a contractor, subcontractor, or supplier who has not been paid for work performed or materials supplied.
A voluntary dispute resolution process where a neutral third party helps the policyholder and insurance company reach agreement on a claim. Non-binding unless both parties agree to the outcome.
The duty of the policyholder to take reasonable steps to prevent further damage after a loss. Failure to mitigate can result in reduced claim payments.
The percentage of water present in a building material. Measured with a moisture meter to determine whether materials need to be dried or replaced.
The process of systematically measuring and documenting moisture levels throughout a structure to determine the full extent of water damage and establish drying goals.
A handheld device used to measure the moisture content of building materials. Pin-type meters measure resistance between two points; pinless meters use electromagnetic signals.
A professional inspection and testing process to determine the presence, type, and extent of mold contamination. Typically required before remediation begins and for clearance after.
Mold damage is property damage caused by mold growth, typically following water intrusion that was not properly mitigated within 24-48 hours. Mold coverage is heavily restricted or excluded in most insurance policies, with many carriers capping coverage at $5,000-$10,000 regardless of actual remediation costs.
The process of identifying, containing, removing, and preventing mold growth in a structure. Requires containment barriers, air filtration, and specialized cleaning procedures.
The specific placement and spacing of nails when installing roofing materials. Manufacturers specify nail patterns for warranty compliance, and high-wind zones require enhanced nailing.
An insurance policy that only covers losses from specific perils listed in the policy, such as fire, wind, or hail. If the cause of damage is not named, it is not covered.
A separate, higher deductible that applies specifically to damage caused by a named hurricane or tropical storm. Common in coastal states.
Non-recoverable depreciation is depreciation that cannot be claimed back under any circumstances. Non-recoverable depreciation applies under ACV-only policies (where the insurer pays only the depreciated value) or when the carrier determines a specific component has exceeded its useful life.
The formal notification to an insurance company that a loss has occurred and the policyholder intends to file a claim. Most policies require prompt notice.
Overhead and Profit (O&P) is a 20% markup (10% overhead + 10% profit) added to an insurance estimate when a general contractor manages multiple trades on a single claim. O&P is built into Xactimate as an industry-standard calculation and is supported by most state insurance departments.
A single event or continuous exposure to conditions that results in damage. Each occurrence triggers a separate deductible.
A type of roof decking made from compressed wood strands bonded with resin. Less expensive than plywood but more susceptible to moisture damage if exposed.
A deodorization method that uses ozone generators to oxidize and eliminate smoke, fire, and mold odors. The area must be unoccupied during treatment.
The process of inventorying, boxing, and removing personal property from a damaged structure for off-site cleaning, storage, or disposal. Documented for the insurance claim.
A deductible calculated as a percentage of the home's insured value rather than a flat dollar amount. A 2% deductible on a $300,000 home means the homeowner pays the first $6,000.
A rubber or metal collar that seals around plumbing vent pipes where they penetrate the roof. One of the most common sources of roof leaks when the rubber cracks.
The steepness of a roof expressed as a ratio of vertical rise to horizontal run. A 6/12 pitch means the roof rises 6 inches for every 12 inches of horizontal distance.
A type of roof decking made from layered wood veneers glued together. Generally more moisture-resistant than OSB and preferred in humid climates.
Policy limits are the maximum amounts an insurance policy will pay for a covered loss. Dwelling coverage, contents, other structures, and loss of use each have separate, independent limits listed on the declarations page.
The policyholder is the person or entity named on the insurance policy. In residential restoration, the policyholder is the homeowner and is the only party with legal standing to file, manage, or authorize actions on an insurance claim.
The amount paid by the policyholder to the insurance company for coverage. Can be paid monthly, quarterly, or annually. Based on risk factors including location, property value, and claims history.
Manually changing the default Xactimate price for a line item to reflect actual costs. Common when local material prices differ from the database or when using specialty materials.
The regional database of material and labor costs that Xactimate uses to calculate estimate totals. Updated regularly by Verisk to reflect current market conditions in each geographic area.
Production orders are documents generated from an Xactimate estimate that list the specific materials, quantities, and labor tasks needed to complete a job. Production orders translate the insurance estimate into actionable work instructions for crews and suppliers.
A partial payment made to a contractor as work is completed, rather than paying the full amount at the end. Common in larger restoration projects.
A proof of loss is a sworn, notarized statement the policyholder submits to the insurance carrier documenting the exact dollar amount of damage claimed. Missing the submission deadline - typically 60-90 days from the carrier's request, under most state regulations - can void the claim entirely.
Physical damage to tangible property caused by a covered peril. In liability insurance, refers to damage a contractor causes to someone else's property.
The primary or dominant cause of a loss. When multiple events contribute to damage, insurers look at the proximate cause to determine whether the loss is covered.
A public adjuster (PA) is a licensed professional who represents the policyholder exclusively in an insurance claim, working on contingency of 5-15% of the final settlement. A Florida study (OPPAGA/FAPIA) found that settlements average 19% higher with public adjuster involvement, even after the PA's fee.
A list of remaining items that need to be completed or corrected before a construction project is considered finished. Created during the final walkthrough.
Replacement Cost Value (RCV) is the cost to repair or replace damaged property with materials of like kind and quality at current prices, with no deduction for depreciation. RCV is the ceiling of the claim from which all other numbers - ACV, depreciation, and deductible - are calculated.
A re-inspection is a follow-up property inspection requested by either the carrier or the contractor after the initial scope of loss is challenged through a supplement. The carrier sends a re-inspector to verify the additional damage claims before approving payment.
The process of installing a new roof, either by overlaying new shingles on existing ones or by tearing off the old roof first. Most codes limit overlays to two layers.
Recoverable depreciation is the portion of the insurance claim that the carrier withholds until repairs are completed and documented. On a replacement cost policy, recoverable depreciation is released after the homeowner submits invoices and photos of completed work within the policy's recovery deadline.
A letter from an insurance company stating they will investigate and potentially pay a claim while reserving the right to deny coverage later based on their findings.
A percentage of the contract amount (typically 5-10%) withheld by the property owner until the project is fully complete. Protects against incomplete work.
Specially shaped shingles installed along the peak (ridge) of a roof where two slopes meet. Provides waterproofing and a finished appearance at the highest point.
A ventilation product installed along the peak of a roof that allows hot air to escape from the attic. Works with soffit vents to create passive airflow.
The structural base layer of a roof, typically plywood or OSB, attached to the rafters or trusses. Everything else - underlayment, shingles - sits on top of the decking.
The system of intake (soffit) and exhaust (ridge, turbine, or power vents) that moves air through the attic. Proper ventilation prevents moisture damage and extends roof life.
A unit of measurement equal to 100 square feet of roof area. Roofing materials, labor, and pricing are typically quoted per square.
The IICRC standard for professional water damage restoration. Defines water damage categories (1-3), classes (1-4), and the procedures for drying and restoring structures.
The IICRC standard for professional mold remediation. Defines procedures for assessment, containment, removal, and clearance of mold-contaminated structures.
Damaged property that the insurance company takes ownership of after paying a total loss claim. The insurer may sell salvage to recover part of the claim payment.
The scope of work is the specific set of repairs to be performed on a project as defined by the estimate. The scope of work overlaps with the scope of loss but serves a different purpose: the scope of loss is the adjuster's damage assessment, while the scope of work is what the contractor actually builds from.
The gradual expansion of work beyond the original agreement without corresponding adjustments to price or timeline. Common in insurance restoration when hidden damage is discovered.
A scope of loss is the adjuster's written, line-by-line inventory of all damage at a property and the estimated cost to repair it. Created in Xactimate, the scope of loss determines the initial claim payment and serves as the baseline for any supplements.
The alphanumeric code that identifies a specific line item in Xactimate. Each code corresponds to a particular material, labor task, or combination.
Siding damage is damage to exterior siding materials (vinyl, fiber cement, LP SmartSide, wood, or aluminum) caused by wind, hail, impact, or moisture intrusion. Siding damage is among the most commonly missed items on residential insurance claims because adjusters typically focus on the roof.
Sketch is Xactimate's built-in diagramming tool for creating floor plans, roof layouts, and property measurements. Sketch data drives all quantity calculations for line items in the estimate - a 2-square error in a roof sketch can swing the estimate by $600-$1,200.
A window installed in the roof surface to provide natural light. A common source of leaks when flashing deteriorates or installation is improper.
The angle of a roof surface, often used interchangeably with pitch. Steeper slopes shed water faster but are more difficult and expensive to work on.
Damage caused by smoke particles depositing on surfaces, including discoloration, odor, and corrosion. Can affect areas far from the actual fire.
The material covering the underside of the roof overhang (eave). Often vented to allow airflow into the attic for proper ventilation.
Fine black particles produced by incomplete combustion of organic materials. Acidic and corrosive, soot must be cleaned quickly to prevent permanent damage to surfaces.
A staff adjuster is a claims adjuster employed full-time by the insurance carrier who handles day-to-day claims in a defined geographic territory. Staff adjusters know local building codes and pricing, and their scopes tend to be more thorough than independent adjusters' work.
A row of shingles or specialized starter material installed along the eaves and rakes before the first course of shingles. Provides adhesive bonding and water protection.
The legal deadline for filing a lawsuit or taking legal action on an insurance claim. Varies by state and by type of claim. Missing this deadline forfeits the right to sue.
L-shaped pieces of metal installed where a roof meets a vertical wall, such as a chimney or dormer. Each piece overlaps the one below to channel water down the roof.
Storm damage is a general category covering any property damage caused by severe weather - wind, hail, rain, tornado, or a combination. Storm damage claims typically involve multiple damage types on a single property and multiple trades, making them the strongest case for overhead and profit.
The controlled process of removing moisture from building materials using dehumidifiers, air movers, and monitoring equipment until materials reach their dry standard.
A contractor hired by the general contractor to perform a specific trade or portion of the work, such as plumbing, electrical, or HVAC.
Subrogation is the legal process by which an insurance carrier pays the policyholder's claim and then pursues recovery from the third party responsible for causing the damage - such as a neighbor's insurer after their tree falls on the policyholder's roof.
A supplement is a formal request to increase the payout on an existing insurance claim when the original scope of loss misses damage, underestimates quantities, or excludes code-required work. Supplements average a 34.4% increase in RCV on residential claims (The Supplement Experts).
A three-party agreement guaranteeing that a contractor will fulfill their obligations. If the contractor fails, the surety company compensates the property owner.
A woven or non-woven polypropylene roof underlayment that is lighter, stronger, and more slip-resistant than traditional felt paper. Increasingly required by shingle manufacturers.
Tear-off is the complete removal of existing roofing materials down to the bare wood deck before installing new materials. Tear-off includes removal labor and disposal costs (dump fees, dumpster rental), and is one of the highest-cost line items on any re-roof estimate.
Emergency work done to prevent further damage before permanent repairs begin. Includes tarping, board-up, water extraction, and emergency power. Typically covered separately from permanent repairs.
The use of infrared cameras to detect temperature differences in building materials, which can indicate hidden moisture. A non-invasive method for identifying water damage behind walls and ceilings.
The three-trade rule is the industry standard stating that when three or more distinct trades are required on a single insurance claim, the 20% overhead and profit markup (10% overhead + 10% profit) should be included in the Xactimate estimate. The three-trade rule is supported by Xactimate's own documentation and most state insurance departments.
The three-letter code at the beginning of each Xactimate category that identifies the trade. RFG for roofing, PLM for plumbing, ELT for electrical, PNT for painting, etc.
Trade groups are the classification system in Xactimate that organizes work by the type of trade performing it (roofing, siding, plumbing, electrical, painting, etc.). The number of trade groups assigned to an estimate directly determines O&P eligibility via the three-trade rule.
An umpire is a neutral third party appointed during the insurance appraisal process when the policyholder's appraiser and the carrier's appraiser cannot agree on the value of a loss. The umpire's decision, combined with agreement from either appraiser, becomes a binding award.
A protective layer installed between the roof deck and shingles that provides a secondary barrier against water infiltration. Available in felt and synthetic options.
Underpayment is when the insurance carrier pays a claim but the amount is insufficient to cover the actual cost of repairs. Underpayment is the default outcome on residential property claims - with the average initial scope written at 50-65% of actual repair costs, 35-50% of claim value requires recovery through supplements.
The cost per unit of measurement for a line item in Xactimate. Units vary by item type - square feet, linear feet, each, etc.
An endorsement that prevents an insurance company from seeking reimbursement from a third party after paying a claim. Often required in construction contracts.
Waste factor is the percentage of additional material ordered beyond exact measurements to account for cuts, breakage, defects, and roof geometry. The industry standard waste factor for simple gable roofs is 10-15%, but complex hip-and-valley roofs require 18-22% waste.
Water damage is property damage caused by water intrusion, plumbing failures, appliance leaks, or flooding. Water damage claims are fundamentally different from weather damage claims because they require emergency mitigation (extraction, structural drying per IICRC S500 standards) before permanent repairs can begin.
The process of removing standing water from a structure using pumps, wet vacuums, and extractors. The first step in water damage restoration after the source has been stopped.
The Xactimate category containing line items for water damage response - extraction, drying equipment, monitoring, antimicrobial treatment, and related services.
Wind damage is property damage caused by high winds to roofing, siding, fences, and other exterior components. Wind damage claims require documentation of both the wind event itself (NOAA storm reports, weather data) and physical evidence of wind-related failure patterns such as creased shingles, missing tabs, and lifted flashing.
A separate deductible that applies specifically to wind or hail damage claims. Often higher than the standard deductible, sometimes expressed as a percentage of the home's insured value.
Insurance that covers medical expenses and lost wages for employees injured on the job. Required by law in most states for contractors with employees.
XactAnalysis is Verisk's cloud-based claims management platform where insurance carriers receive, review, approve, or dispute estimates and supplements submitted through Xactimate via XactNet. XactAnalysis is the review end of the Xactimate ecosystem.
Xactimate is the estimating software developed by Verisk that is used to process claims at the vast majority of top US property insurance carriers. Xactimate is the industry standard for writing estimates, submitting supplements, and negotiating claim values in insurance restoration.
XactNet is Xactimate's cloud-based delivery network for transmitting estimates, supplements, and supporting documentation between parties. XactNet is the pipeline that moves estimates from Xactimate to the carrier's XactAnalysis review platform.
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