Line Item Dispute
A disagreement between the contractor and the insurance carrier over a specific line item in the estimate, including whether it belongs in the scope, the quantity, or the pricing.
What Is a Line Item Dispute
A line item dispute is a disagreement between a contractor (or policyholder) and an insurance carrier over a specific entry in the damage estimate. Disputes can involve the inclusion of an item, the quantity, the unit of measure, or the price.
Common Disputes
Frequent line item disputes include overhead and profit on subcontracted trades, waste factors for materials, starter strip and drip edge quantities, permit fees, debris removal quantities, and code upgrade line items. Each dispute requires specific documentation to resolve.
Resolution Process
The most effective approach is to provide supporting evidence for each disputed item. This includes photos showing the damage or existing condition, manufacturer specifications requiring certain installation methods, building code sections mandating specific materials, and Xactimate pricing data supporting the unit price.
Frequently asked questions
A line item dispute occurs when the contractor or policyholder disagrees with the carrier about a specific item in the estimate. The dispute may involve whether the item is needed, the quantity allowed, or the unit price applied.
Resolution typically requires documentation proving the item is necessary. This includes photographs of the damage, manufacturer installation requirements, building code references, or industry standard practices that justify the line item.
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