As with many other sectors, the insurance and restoration business is interwoven with multiple different sectors all across the global economy. Within the past two years, due to the COVID-19 pandemic, the rising cost of building materials, inflation, labor shortages, and delays in the supply chain have become increasingly more common and affect all aspects of the insurance claim process.
The bureau of labor statistics reports that within the past 18 months the price of lumber has gone up by 78%. Along with lumber, the prices of all raw materials such as rubber, metal concrete, and plastic have all gone up in price significantly. Not only does this mean the prices for those materials are higher, but it also means that all of the labor, transportation, and construction of restoration projects are all inflated as well.
One of the main issues that we face is that Xactimate, the pricing software used by both contractors and insurance companies, is not updated frequently enough to reflect the real-world prices of these materials. Sometimes the price of materials will not be updated for 6 months to a year on the program when in reality the prices of these materials change on a daily basis. When filing an insurance claim and speaking with a contractor it is vitally important that you look up the real-world price of the materials needed to complete your project.
Xactimate
One of the main issues that we face is that Xactimate, the pricing software used by both contractors and insurance companies, is not updated frequently enough to reflect the real-world prices of these materials. Sometimes the price of materials will not be updated for 6 months to a year on the program when in reality the prices of these materials change on a daily basis. When filing an insurance claim and speaking with a contractor it is vitally important that you look up the real-world price of the materials needed to complete your project.
