How to read a carrier estimate

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A carrier estimate can run from a few pages to well over a hundred. Most of them follow the same basic structure whether they were written in Xactimate or Cotality (Symbility). Once you know where things live, you can find the gaps much faster. This guide walks through the sections in the order most people should read them, and points out what to look for in each.

Start with the cover page and claim info

The first page usually lists the insured, the property address, the claim number, the date of loss, the type of loss and the price list used. Check these before anything else. A wrong date of loss or a price list for the wrong region or the wrong month can affect every line in the estimate. Note the price list name and date so you can compare it to your own.

Also look for the estimator or adjuster notes near the front. Some carriers put scope assumptions here, such as "drying by others" or "contents handled separately." Those notes tell you what the carrier thinks is and is not included, which matters when you start comparing scope.

Use the recap and summary only to check totals

Near the end of most estimates you will find a recap by category, a recap by area and a summary page showing line item total, overhead and profit (if included), tax, replacement cost value (RCV), depreciation and actual cash value (ACV). These pages show the totals, but they are not a reliable way to compare estimates. Use them only to confirm totals, tax, depreciation and whether overhead and profit was applied. Do the actual comparison line by line.

The recap cannot tell you why a number is low. For that you need the itemized pages. When you ask anyone to review an estimate, send the full itemized PDF, not just the summary.

Work through the estimate room by room

The body of the estimate is organized by area: rooms, elevations, roof slopes or general sections. Each area usually starts with its dimensions. Before reading the line items, check that the room sizes, ceiling heights and openings look right. A room drawn a few feet short means every wall, floor and ceiling quantity in it will be short too.

Then read the line items in that area. Each line typically shows:

• A description of the item and the activity (remove, replace, detach and reset, clean, and so on)
• A quantity and unit, such as square feet, linear feet or each
• A unit price, sometimes split into material and labor
• Tax, overhead and profit where applicable
• RCV, depreciation and ACV for that line

Check the activity, not just the item

One of the most common issues is a line that names the right item with the wrong activity. Drywall listed as "patch" when the room needs full replacement, or baseboard listed as "detach and reset" when it was removed and cannot be reused. The description matters as much as the quantity.

Also look for paired items. Removal without replacement, or replacement without removal, often signals a missing line. The same goes for prep and finish work: new drywall usually needs texture, primer and paint. If one half of a pair is there, check for the other.

Compare quantities to the actual job

For each area, ask whether the quantities match what was really affected. Wall square footage should reflect the height of the damage and the scope of the repair. Flooring should account for the whole continuous area where matching is an issue. Trim, casing and baseboard quantities should line up with the room perimeter and the openings.

A quick way to catch problems is to compare the carrier quantity for an item against your own measurement for the same area. Small differences add up across a large loss.

Look at depreciation

Depreciation is usually shown per line and totaled on the summary. Check which items are depreciated, at what percentage and whether labor is depreciated as well as materials. Policies and state rules vary on this, so it is worth noting what was applied even if you are not the one who will discuss it with the carrier. Make sure recoverable and non-recoverable depreciation are labeled.

Read the line notes

Many line items carry short notes from the estimator. These can explain a quantity, reference a photo or state an assumption. Notes sometimes reveal that an item was reduced on purpose, or that the carrier is waiting for more documentation. If a line looks low, read its note before assuming it is a mistake.

Keep a running list

As you read, write down each difference you find with its area and line number: missing items, wrong activities, short quantities, price differences and notes that need a response. Grouping them by type makes it easier to decide which items need documentation, which need a supplement and which are simple corrections.

When you have your own estimate for the same job, a side by side comparison is the clearest way to see everything at once. Lining up each carrier line against the matching contractor line, with quantity, unit price and the difference, shows exactly where the gap is and how large it is.

Quick checklist

• Claim info, date of loss and price list are correct
• Scope notes and assumptions are understood
• Room dimensions and heights look right
• Each line has the right item and activity
• Paired items (remove and replace, prep and finish) are both present
• Quantities match the affected area
• Depreciation is noted per line
• Line notes are read and differences are logged