Xactimate Pricing and Supplements

I find that Xactimate pricing is fair and profitable, but only when Xactimate pricing is paid. What do I mean by that? Today, I had an adjuster tell me that “The line item for shingle-over ridge vent includes the actually shingle-over itself.” No lie! She skipped the step flashing and valley metal. She also skipped the ridge cap and starter strip (which on a straight gable roof, the two squares of waste that were included CERTAINLY won’t cut it!). It seems clear that the P&C companies started out by establishing a relationship with contractors based upon “Xactimate Pricing,” rather than the “per square” pricing that we actually charge. Once they accomplished this, all they had to do was blitz us with “we don’t pay that line item any more,” and all of a sudden our “per-square” prices dropped by upwards of $30-$50/SQ!

If any adjuster were honorable or self-respecting enough to actually read what Xactimate has to say about these line items, they would quickly realize that they are making a misrepresentation to the insured by saying Xactimate factors all the “extras” into line-items like RFG240 or RFG300. Has anybody in this forum found a “silver bullet” method to supplement for these line-items and get them paid for?

Supplements

Supplements Part II

Most legal contractors don’t charge by the sq. We price the work to the job correctly, legally and up to warranted standards.

After that the per sq. price cutting corner cutting 1099 cheats come up w/ some per sq. price based on some perceived “going rate”.

Historically anyway. Anymore it is just a free for all and now the Ins Cos are consolidating their power. After all they now own the market and roofing is simply a number on a piece of paper to them. … If you are legal you will be operating in the top half of Exactimate pricing.
How do you make that a “SUPPLEMENT” and recover it?

AD,
Your posts on a successful supplement process were very educational. Thanks so much.

Your Poll is missing 1 variable that needs to be accounted for.
I usually get a majority of line items I ask for with appropriate documentation.

We supplement almost everey claim. I think with the insurance companies track record we have to.

[quote=“Idiot Savant”]Most legal contractors don’t charge by the sq. We price the work to the job correctly, legally and up to warranted standards.

After that the per sq. price cutting corner cutting 1099 cheats come up w/ some per sq. price based on some perceived “going rate”.

Historically anyway. Anymore it is just a free for all and now the Ins Cos are consolidating their power. After all they now own the market and roofing is simply a number on a piece of paper to them. … If you are legal you will be operating in the top half of Exactimate pricing.
How do you make that a “SUPPLEMENT” and recover it?[/quote]

Figuring by sq then adding in all integral parts including flashings, DE, Starters, Ridge materials, Vents, etc. and pricing by total cost of the job?!

Top half of XM8 pricing? Xactware says their pricing in MOR on average. The thinking contractor knows that XM8 pricing is usually below RTA for any area. If low, mid and high pricing is 10, 20 and 30, ISO “surveys” usually kick out the high number then come up with a mid range MOR price of 15 (10, 15 and 20) to justify their claims that they are MOR which is still too low for a pro contractor to stay in business.

So, what is the “top half” of XM8 pricing? 16, 17, 18,… It’s always too low, IMO.

Thanks LMB. What is RTA, btw? I know MOR is Middle of the Road

I believe it stands for Real, True and Accurate. You know, how we price things.

[quote=“dstew66”]

I believe it stands for Real, True and Accurate. You know, how we price things.[/quote]

You are correct dstew. Thank you