A look back at 2024 to identify trends in the industry and potential opportunities for restoration contractors and their clients.
Trend 1: Insurance Companies Are Relying on Less Experienced Personnel
Insurance companies continue to increasingly rely on less experienced personnel to process claims. Cost savings and meeting claim volume demand are likely two big drivers. Knowing when and how to push back against a bad comparative estimate or a questionable decision is more important than ever.
Related tips:
- Most communication with adjusters happens over the phone. When decisions are made by insurance staff or TPAs, request that they email their decision or requested changes in writing to both you and the homeowner. Things get said over the phone that may never make it into writing.
- Know the difference between a coverage denial and a scope denial. Adjusters often say something is not "covered" for any line item they are not paying for, but there is an important distinction between scope excluded by the policy and scope they simply do not think is necessary. For scope not covered by the policy, most states require a written denial letter with supporting policy language be sent to the policyholder.
- If a decision does not seem fair or reasonable, it might not be. Consider filing a consumer complaint through your state's department of insurance portal. Contractors typically cannot file on behalf of the homeowner, so check local requirements.
Trend 2: Capturing Detailed Documentation Remains a Challenge
Detailed sketches and thorough photo documentation remain a challenge for many contractors. This makes sense — contractors are experts at running jobs, not at documentation workflows. But as adjuster experience declines, the contractor who shows up with a detailed, accurate sketch and strong photos becomes the authority on the file.
Related tips:
- Use a laser tape measure for accurate measurements.
- Hold your phone in landscape orientation. Use the 0.5x wide-angle setting for room overviews (at least two per room) and the 1x setting for close-up damage photos.
- Consider investing in tools like an Insta360 camera or an Apple Pro device with LiDAR. Apps like MagicPlan paired with LiDAR can diagram an entire room in minutes with a professional-grade floor plan as the output.
Trend 3: Carrier Estimates Missed Scope on Every Single Job Reviewed
Out of all insurance company-written estimates reviewed in 2024, the total that did not miss any items was zero. Every estimate had at least one missing item. Many had significantly more. Adjusters are under pressure to process estimates quickly and not overpay — the result is that items get missed.
Related tips:
- Review the carrier estimate room by room and line by line against your own scope of work.
- Know what the Xactimate line items the carrier used actually include. Some line items specifically exclude related work. For example, the Tile Shower (61–100 SF) line item does not include the shower pan, mortar bed, or cement backer — those need to be added as separate line items.
Trend 4: Homeowners Are Reaching Out Directly
In 2024 there was a noticeable increase in homeowners reaching out directly to request help interfacing with their insurance company on behalf of the contractor they had already hired. Most clients are restoration companies and service providers looking for estimating support, but this shift in homeowner-initiated contact was a new pattern worth noting.
If your contractor is unfamiliar with the Xactimate platform or why the insurance company is requesting an itemized estimate, reach out. We may be able to help bridge that gap.