How software once intended to help now limits fair claims payouts — and what you can do about it.
What’s Going On with Xactimate in Florida?
Xactimate is widely adopted estimating software used by insurers to assess property damage and calculate repair costs. Though designed as a flexible tool for adjusting claims, it’s increasingly being used in ways that harm Florida homeowners:
- Insurers are enforcing rigid use of Xactimate pricing, even when real-world costs exceed the software’s baseline figures.
- Florida’s Emergency Rule 69BER24-4 further restricts adjusters from deviating from pre-programmed estimates unless they provide exhaustive documentation—even in the wake of hurricanes where prices have skyrocketed. Internal conflict arises due to Xactimate’s license agreement, which expressly permits price adjustments when warranted.
- Many adjusters now describe the system as favoring insurer control over professional judgment, limiting fair resolution.
Hard Costs—Underpaid and Overlooked
After disasters like Hurricane Ian, costs for labor and materials surged, yet Xactimate figures lagged behind—a gap that remains largely unaddressed, resulting in systemic underpayment. Boltz Legal has documented instances where homeowners were significantly shortchanged post-storm, even when local contractor rates were higher.
Explore more: 14 Florida Insurance Companies Deny Over Half of Home Damage Claims
What Courts Are Saying — and Not Saying
Legal precedent generally holds software harmless: no court has successfully sued Xactimate itself for underpayments. In one notable insurance dispute involving State Farm, a homeowner’s lawsuit was dismissed because the policy didn’t bind the insurer to a specific estimating method—so long as the claim payout complied with policy terms.
This means the real accountability lies with the carrier, not the tool. Courts focus on whether the insured received full contractual benefit, regardless of which estimating method was used.
Under the Hood of Xactimate
Xactimate is developed by Verisk Analytics, formerly ISO, created by insurance carriers. With much of Verisk’s revenue derived from insurers, some question whether pricing algorithms favor insurer margins—and evidence suggests that data may not be updated quickly enough to reflect post-disaster surges.
Real-World Fallout: The Numbers Don’t Lie
- In Kentucky, a class-action suit revealed that State Farm’s Xactimate labor depreciation led to underpayments affecting over 65,000 policyholders between 2004–2017.
- While Florida lacks a similar class suit, anecdotal evidence and internal discussions among public adjusters consistently point to repeat underpayment scenarios—especially post-hurricane or during rebuilding booms.
Discover more: Florida’s Insurance Crisis: Hidden Profits Amid Rising Premiums
Why This Should Alarm Every Florida Policyholder
When a tool intended for guidance becomes mandatory, homeowners lose leverage and fairness:
- Adjusters lose autonomy—forced to rely on software that may not reflect market reality.
- Payouts fail to match actual costs—especially dangerous after disasters.
- Policy enforcement rules compound the problem, locking adjusters into outdated pricing.
These issues spark legal and regulatory concerns—not only about fairness but also insurer motives and transparency.
Boltz Legal Insight: How to Fight Back
If you’re dealing with an insurance claim that feels undervalued or glossed over:
- Request the full Xactimate estimate used by your insurer.
- Obtain independent contractor bids to compare actual market costs.
- Document everything, from photos to receipts.
- Use your policy’s appraisal clause—it’s a direct path to fair negotiations.
- Reach out to a claims attorney, especially when software restrictions hinder reasonable payouts.
Explore more: – Rosario Valer v. Citizens Property Insurance Corporation: A Question of Water Damage Coverage and Procedural Fairness – Florida’s DOAH Arbitration Disaster: How Citizens Is Stripping Policyholders of Their Rights – Case Corner: Florida Bad Faith Insurance Claim Retroactivity – Cindy Vo
Related Reads on Boltz Legal You’ll Find Helpful
- 14 Florida Insurance Companies Deny Over Half of Home Damage Claims
- Florida’s Insurance Crisis: Hidden Profits Amid Rising Premiums
- Rosario Valer v. Citizens Property Insurance Corporation: A Question of Water Damage Coverage and Procedural Fairness
- Florida’s DOAH Arbitration Disaster: How Citizens Is Stripping Policyholders of Their Rights
- Case Corner: Florida Bad Faith Insurance Claim Retroactivity – Cindy Vo