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In an increasingly digitized workplace the demands of technical knowledge placed on insurance claims adjusters have expanded beyond simply knowing the logistics of property loss. Indeed, you must also know the software that knows the logistics of property loss. That software is Xactimate 25 by Xactware Inc.
Xactimate Overview
Xactimate 25, used by an estimated 75% of independent adjusters and 15 of the top 20 property insurers, is a robust program that generates an estimate of how much money it will take to return covered property to its pre-existing condition (less depreciation where applicable). The program relies upon a massive database that updates bi-weekly the cost for labor and virtually all commonly encountered materials for every county in the United States. The prices are historically quite accurate, although when necessary, you are able to manually override the price of particular materials and/or labor. The program is simply one of "How Much?" and "What kind of Stuff?".
How Xactimate Works
Here is a simplified version of how it works: you are sent to adjust a claim for a residential property damaged by extreme high winds in Bourbon County, Kansas. 70% of the shingles on the 3 tab roof have been completely blown away. You decide the roof is totaled and that 100% of the roof will need replacement. After taking measurement of the roof (20 squares), you enter the dimensions into the Xactimate program in either Sketch (a more visual drawing component) or through simple dimensioning. Once the "How Much?" has been determined its time to address "What kind of Stuff?". By searching the database (as one might search in Google or Yahoo) for the appropriate code for 3 tab shingles, you are able to apply the right "stuff" to the "how much" or 20 squares. Xactimate then draws upon its database of price for labor and 3 tab shingles for Bourbon County and generates a figure. This figure is included as the final recommended settlement amount for the claim in your estimate. In this way, Xactimate allows adjusters to accurately determine replacement costs for damaged property anywhere in the United States.
Previously, with hand-written estimates, the adjuster needed to have a good understanding of cost of labor and materials for the particular area he or she was working. As prices fluctuate dramatically, for instance prices in Miami Beach being substantially higher than prices in a rural part of the Midwest, it became a real challenge to the traveling adjuster. Xactimate takes the guesswork out, and not surprisingly, the days of hand-written claims are essentially over. The drawback of such a powerful program, of course, is that claims adjuster can get by with knowing less. Less familiarity with the prices of materials and labor cannot help but mean less familiarity with the materials and labor themselves. The end result is that Xactimate knows more so the adjuster may know less. Still, the advantages of efficiency, accuracy, and estimating speed cannot be taken lightly.
Conclusion
Property loss estimating in the 21st century will inevitably become more digitized and reliant on technology. Xactimate stands at the forefront of such developments and, if Xactware Inc. maintains its high standards and quality team, they will remain there for many years to come. Yet not all estimating can be boiled down to a computer. Each loss is unique and when property is damaged judgments must be made, and the only judge suitable to be the final arbiter of such claims is a flesh-and-blood claims adjuster. Technology will advance, and the successful insurance adjuster will be the one who most efficiently harnesses it to enforce reason, conscience, and sound judgment.
Daniel Kerr has served as a career and training consultant for thousands of experienced and aspiring professionals in the insurance claims adjuster industry. In addition to his work as a catastrophic claims adjuster, Daniel acted as the V.P. of Operations for one of the most successful adjuster licensing companies in the country - helping to grow the business into the most recognized brand in the industry.
Mr. Kerr currently co-owns and operates AdjusterPro, a rapidly growing business dedicated to providing the finest resources available to aspiring claims adjusters. AdjusterPro offers courses to obtain your Texas adjuster license as well as Xactimate training and online continuing education. For a free career consultation or to find out more about how to become an insurance adjuster, call AdjusterPro directly at 214-606-8370.
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