Auto-Owners has begun a sad trend of suing its insureds and alleging that the insured’s contractors and/or public adjusters are fraudulently inflating prices. Auto-Owners is levying these accusations even though its insureds’ contractors and/or public adjusters are also using Xactimate to estimate the costs of repair to reach a lump sum agreement. In taking this drastic step, Auto-Owners and its attorneys confusingly assert Xactimate results is fair and reasonable pricing for them, but results in fraud when its insureds’ contractors and/or public adjusters produce an estimate utilizing the same software. This trend is both shocking and concerning for Auto-Owners’ insureds.
Continue Reading Auto-Owners Utilizes Xactimate to Draft Claims Estimates, But Argues Fraud When its Insureds Do the Same

Safety is first. But that is not the course of affairs when dealing with insurance company adjusters who usually say that they will not include the costs of legally required safe construction practices because their managers will not allow those costs.
Continue Reading Insurance Companies Should Be Accountable For Not Including Legally Required Costs Of Safe Construction

Chip Merlin & Jeff Major

Insurance estimating expert Jeff Major gave one of the best speeches about Xactimate I have ever seen at the First Party Claims Conference West. I have seen Jeff give a number of presentations over the years, even teaching federal judges, magistrates, and mediators following Superstorm Sandy. But his warning about getting an insurance company’s “turkey dinner” Xactimate construction estimate is his latest masterpiece.
Continue Reading Explaining Xactimate Accuracy and the Need to Analyze Details Before Getting the Wrong Turkey Dinner From the Insurance Company Estimator

Overhead and Profit can generate a lot of debate when insurance company adjusters are looking to meet their adjustment severity goals and lower claims payments. But have you ever wondered how those same insurers instruct their sales people to calculate overhead and profit when they are calculating the premiums that they charge their customers for the same coverage?
Continue Reading Farmers Insurance Recognizes 25% Contractor Overhead and Profit!

Merlin Law Group filed a class action lawsuit in Federal Court today alleging that sales tax was not being paid to many Superstorm Sandy policyholders with flood insurance claims insured by Selective Insurance. Some must be wondering that if policyholders cannot trust insurance company engineering reports, why should they trust that the estimates of damage made by the insurance companies own estimators?

Continue Reading Sales Tax Missing From Sandy Claims Estimates Leads to Class Action Lawsuit

In my last post, I discussed how Xactimate’s pricing is going down while national building material prices are going up. One theory I advanced was that insurance companies are the largest customers of Xactimate and therefore Xactware is simply giving its customers what they want. This video does prove that:


Continue Reading Xactimate Controlled by the Insurance Industry

Yesterday, our firm hosted a training seminar for public adjusters and others who use the insurance claims estimating software, Xactimate. During the seminar, a common theme began to develop in the comments we heard. Almost every Xactimate user we spoke to said the same thing, Xactimate’s pre-installed prices have been steadily declining over the last several years. This got me thinking, as many of my New Jersey clients are seeing building material prices increase for them.

Continue Reading Xactimate Price Trend Does Not Reflect Actual Costs