Verisk adds a third Xactimate labor-efficiency model
Archive story from the 2026-05-30 edition. This is the reporting as filed; source publication and event dates may differ. Check the dated storyline for subsequent developments.
Xactimate now carries three labor-efficiency tiers, adding a Large Restoration and Remodel setting between service work and full rebuilds.
Xactimate moved from two labor-efficiency models to three, adding a "Large Restoration/Remodel" tier meant to bridge service-level work and full rebuilds. It lands on top of the long-running dispute over carriers using the "new construction" setting to lower payouts; courts have mostly sided with carriers that no specific setting is contractually required.
Why it matters
Labor efficiency is the hidden multiplier on every estimate. A third setting means a new "which one applies" argument on every large loss, and whoever can defend the right tier with documentation wins or loses real margin.
Our assessment
The easy version is that Verisk finally matched the software to how big restoration jobs actually run. In practice a third setting is one more thing a desk adjuster gets to pick for you, and the side holding the checkbook picks last. Put a one-page labor-tier justification in every large-loss package: job size, trade count, schedule, site conditions.
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Terms in this story: Xactimate