Pricing Dispute
A disagreement between the contractor and insurance carrier over the unit prices, labor rates, or material costs applied to line items in the estimate.
What Is a Pricing Dispute
A pricing dispute occurs when the contractor and insurance carrier disagree on the unit prices, labor rates, or material costs applied to estimate line items. These disputes can significantly affect the total claim payment.
Common Pricing Issues
The most frequent pricing disputes involve the carrier using an incorrect or outdated Xactimate price list, applying pricing from a different geographic region, undervaluing specialty materials, or failing to account for market conditions that affect local pricing (such as post-storm material shortages).
Resolving Pricing Disputes
Resolution requires documentation of actual costs. Obtain written quotes from local suppliers for the specific materials in question. Reference the correct Xactimate price list for the job's ZIP code. If market conditions have raised prices above Xactimate defaults, document this with dated invoices or supplier communications.
Frequently asked questions
Pricing disputes arise when Xactimate's regional pricing does not reflect actual local costs, when carriers apply pricing from a different region, when the carrier uses an outdated price list, or when the estimate applies incorrect units of measure.
Document actual local material costs with supplier invoices or quotes. Reference the correct Xactimate price list region for the job location. If Xactimate pricing is below market, provide supplier documentation showing actual costs. The carrier can apply manual overrides when justified.
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