Have You Lost Property Due to a Storm and Feel Like State Farm Isn’t Being Fair to You?

Xactimate is a software program widely used in the insurance industry for estimating property damage and repair costs. It is designed to help adjusters, contractors, and other professionals create detailed, accurate estimates for repairs and replacements following damage from incidents like natural disasters, accidents, or other events covered by insurance policies.

What is Xactimate?

Xactimate is a comprehensive tool for creating estimates for property damage repairs, like the ones that were needed after the catastrophic tornadoes in Barnsdall earlier this year. It includes a vast database of current material and labor costs. It is considered the industry standard for insurance claims and property damage restoration. Xactimate offers desktop, mobile, and online versions, making it accessible in various formats for convenience and flexibility. State Farm is one of the insurance companies that uses Xactimate.

How does Xactimate work?

At its core, Xactimate is a database containing information on construction costs, materials, labor, and other factors. Adjusters input details about the damage to a property, and the software generates an estimate of the repair or replacement costs. This process is designed to provide a standardized and efficient approach to claims evaluation.

The downside for homeowners

While intended to be impartial, State Farm and Xactimate often fall short of accurately reflecting the true cost of property damage and repair. Several key issues contribute to this problem:

• Generic pricing: Xactimate relies on average costs for materials and labor, which may not accurately reflect regional variations, market fluctuations, or the specific circumstances of a particular claim. This can lead to underestimates of repair costs.
• Depreciation: The software often applies depreciation to the value of damaged items, reducing the amount offered for replacement. This can be particularly problematic for high-end or custom-built homes, where replacement costs may exceed the depreciated value.
• Lack of customization: Xactimate is designed for mass-produced homes, and it may not adequately account for the unique features and materials of custom-built or historic properties. This can result in significantly low estimates.
• User bias: The adjuster using Xactimate has discretion in how they input data and interpret the software’s output. This can lead to variations in estimates, even for similar claims. There is a potential for bias in favor of the insurance company.
• Limited scope: Xactimate primarily focuses on structural damage and rebuilding costs. It may not adequately account for additional expenses such as temporary housing, debris removal, or loss of use.
• Complex claims: For large or complex claims involving multiple types of damage, Xactimate may struggle to provide accurate estimates. This can lead to disputes and delays in the claims process.

Consequences for homeowners

The shortcomings of Xactimate can have severe financial consequences for Oklahoma homeowners. Underestimating repair costs can leave homeowners with significant out-of-pocket expenses. Disputes over claim amounts can lead to lengthy and stressful legal battles. In some cases, homeowners may be forced to settle for less than what they are entitled to, leaving them with a property that is not fully restored.

Protecting yourself

To mitigate the risks associated with Xactimate, homeowners can take several steps:

• Understand your policy: Carefully review your State Farm insurance policy to understand your coverage and the claims process.
• Document damage: Take detailed photos and videos of the damage to your property.
• Obtain multiple estimates: Get estimates from several contractors to compare costs and identify potential discrepancies with the insurance estimate.
• Consider a public adjuster: A public adjuster is a licensed professional who represents homeowners in insurance claims. They can help navigate the claims process and negotiate for a fair settlement.
• Know your rights: Be aware of your rights as a policyholder and be prepared to advocate for yourself.

While Xactimate can be a useful tool for insurance companies, homeowners need to understand its limitations and take steps to protect their interests. By being informed and proactive, homeowners can increase their chances of receiving a fair settlement for property damage.

How to dispute a low Xactimate estimate

Disputing a low Xactimate estimate from State Farm can be a complex process, but with careful preparation and persistence, achieving a fair settlement is possible. Here’s a step-by-step guide:

• Understand the estimate
  • Review the estimate thoroughly: Identify specific areas where you believe the estimate is low.
  • Compare the estimate to your policy: Ensure the estimate aligns with your coverage.
  • Document everything: Keep copies of the estimate, photos of the damage, and any communication with the insurance company.
• Gather evidence
• Obtain multiple estimates: Get quotes from at least three reputable contractors to compare costs.
• Document additional damages: If you discover damage not included in the initial estimate, document it with photos and descriptions.
• Gather receipts: Collect receipts for any repairs or temporary living expenses incurred.

Communicate effectively

• Contact your adjuster: Clearly explain your concerns about the estimate and provide supporting documentation.
• Be polite but firm: Maintain a professional tone throughout the process.
• Request a detailed explanation: Ask the adjuster to justify the estimate and explain how it was calculated.

Consider alternative dispute resolution

• Mediation or arbitration: These options can help resolve disputes without resorting to litigation.
• Public adjuster: A public adjuster can represent your interests and negotiate with the insurance company on your behalf.

Legal action

• Consult an attorney: If negotiations fail, you may need legal advice. Talk to the Oklahoma insurance attorneys at Biby Law today – we can help.
• Understand your rights: Familiarize yourself with your state’s insurance laws.

Specific strategies to challenge the estimate

Our attorneys can utilize a variety of strategies to challenge State Farm’s Xactimate estimate:

• Challenge depreciation: Argue that depreciation does not apply to certain items or that the depreciation rate is too high.
• Dispute labor costs: If the labor estimate is low, provide evidence of current market rates.
• Correct material costs: Verify that the estimate accurately reflects the cost of materials used in your home.
• Account for additional expenses: Include costs for debris removal, temporary housing, and other related expenses.
• Highlight policy coverage: Ensure the estimate aligns with the terms and conditions of your insurance policy.

Some additional tips include:

• Be patient: The claims process can be time-consuming.
• Maintain good documentation: Keep copies of all correspondence and documents.
• Don’t accept the first offer: Insurance companies often start low.
• Know your rights: Be aware of your rights as a policyholder.

By following these steps and gathering solid evidence, you can increase your chances of successfully disputing a low Xactimate estimate and obtaining a fair settlement from State Farm. The dedicated Oklahoma attorneys at Biby Law Firm can help.

Insurance companies often deny or undervalue claims. Don’t let them take advantage of you. At Biby Law Firm, we’re dedicated to fighting for policyholders in Tulsa, Barnsdall, and throughout Oklahoma. Our experienced attorneys can aggressively pursue the compensation you deserve. Please call us or complete our contact form to schedule a free consultation.