This episode sponsored by: LiveSwitch https://join.liveswitch.com/ClaimClinic

Top Ten Xactimate Profit Secrets: XactSecrets.com

The Claim Clinic — “What the RIA Cost of Doing Business Report Means for 2026”

In this episode of The Claim Clinic, host Andrew McCabe breaks down the just-released 2025 RIA Cost of Doing Business Report, revealing what the latest financial and operational data say about the future of the restoration industry. Drawing on fiscal year 2024 data, this year’s report paints a picture of an industry growing up fast — with mid-tier firms scaling aggressively, TPAs losing ground, and contractors getting smarter about their true costs.

Andrew walks listeners through the major shifts: small firms saw a huge jump in profitability, large companies faced margin compression, and the average overhead across the industry now sits at a hefty 38.5%, obliterating the old “10 and 10” myth once and for all. He also explores how cash flow stress — with the average receivable sitting at 60 days — is quietly reshaping business models, forcing restorers to run leaner and think like CFOs.

Finally, Andrew ties the data to on-the-ground realities: the rise of independent pricing, the growing divide between residential and commercial strategies, and what the next wave of technology and training investment means for contractors heading into 2026.

It’s data with teeth — and proof that the restoration world isn’t just surviving, it’s evolving.

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YourContractSucks.com

Restoration Rebel Roundtable Briefing Summary

Date of Discussion: 12/22/22

Compiled: 10/26/23

This roundtable highlights core strategies for restoration contractors navigating insurance claims: protect your pricing, prioritize transparency with clients, and maintain independence from insurer mandates. The discussion centered on a successful contractor case study that challenged the insurer’s control, reinforced by homeowner support and a well-drafted contract.

Key Themes:

1. Protect the Value of Your Work
2. Rebels stress the importance of not doing free work. "Offering free services only serves to erode the value of similar services industry-wide."
3. Radical Transparency—with Clients, Not Carriers
4. “I never communicate with an adjuster without also communicating with my client.”
5. Community over Competition
6. “Restoration companies in my market are part of my community. It is our unbreakable unity that will create the change that we strive for.”
7. Walk Away When Necessary
8. “No relationship is worth losing money, sleep, or my humanity.”
9. Case Study: ‘100% Non-Fucking Compliant’
10. A contractor refused to comply with the insurer’s process and was paid in full per their client contract. They enforced a signed agreement that specified pricing terms and a 10% markup on subcontractors. Matterport documentation strengthened their position.
11. Contract Law Trumps Insurer Preference
12. “We are implementers of contract law. The only rules we have to follow… is the rule of law.”
13. Matterport as a Differentiator
14. 3D imaging helped secure the job and justify the scope. “People in South Korea could walk through the building and they'd never seen the building.”
15. Refusing to Provide Cost Breakdown
16. “You're not my client. My agreement is with my client.” Back-end data like timecards and subs was withheld, and the client’s legal team backed the contractor’s position.
17. Xactimate Is Not a Contract
18. “Single sheet contracts are not valid… you can’t get all the proper things you need on a cover sheet of an Xactimate PDF.”
19. Homeowner Buy-In Is Essential
20. “If the homeowner will not stand up to their insurance company, you can't stand up for them.”
21. Project Managers Are Critical
22. “My project manager could not have done a better job… ahead of schedule on a $5-6M project.”
23. AI on the Horizon
24. Discussion touched on the future impact of tools like ChatGPT and AI-based estimators like Impartial. There was concern that these could disrupt traditional estimating roles, but skepticism remained about insurer adoption: “The players on the carrier side are easily 10 years behind the technological curve.”

Conclusion:

Contractors must anchor their operations in sound contracts, transparency with clients, and the willingness to challenge insurer narratives. The discussed case shows that success comes from standing firm with a signed agreement, resisting insurer overreach, and equipping clients to advocate for themselves. The Rebel ethos remains clear: know your value, support each other, and never surrender to artificial rules.

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Ladies and gentlemen,

I am here to deliver an urgent truth: the restoration industry is under attack, and the time to act is now. Unity is not optional. It is the only way forward. For years, I have watched as this industry has been taken from us, piece by piece. Now, the carriers are no longer content with nibbling away at what we’ve built. They are moving aggressively, driving independent restorers out of business, silencing the very voices that make this industry strong. In some parts of the country, this is already a reality. Appraisals are being weaponized. Payments are being delayed for months, even years. Outright denials have become the norm. In these markets, independent restoration businesses have been wiped out. This is not an isolated problem—it is spreading. And it will reach every corner of this country unless we stop it. But hear this: we are the ones who allow it to happen. Their programs and policies depend on our compliance. Their agenda succeeds only because we tolerate it. That ends today. The truth is simple: we win together, or we lose everything. There is no middle ground. Five years from now, if we fail to act, we will have no voice, no control, no choice in how we serve our clients. We will be at the mercy of systems designed to benefit carriers—not us, not our clients, and not the communities we serve. Anyone who thinks they’re above this fight is wrong. Anyone waiting for someone else to step in and fix this is mistaken. The responsibility to protect our industry falls on all of us. Every single one of us must decide, right here and right now, to fight back. Stop going along with their programs. Refuse to comply with systems designed to strip us of our power. Stand up for yourself, your business, and this industry. Together, we have the strength to reclaim what is ours. The time for waiting is over. The time for action is here. Fight for your livelihood. Fight for your clients. Fight for the future of restoration.

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The adjuster describes how attempting to force an insurer into admitting fault or setting a precedent can backfire, leading to claim denials and litigation. The lesson emphasizes the importance of understanding insurer motivations and strategically shifting negotiation tactics towards compromise.

The "Cornering" Effect and Insurer Resistance:

• The central idea is that insurance companies will resist agreeing to arguments that could implicate them in "bad faith" or set unfavorable precedents for future claims.
• As the adjuster explains, "sometimes we make arguments and we put them in a position where if they agree with us they implicate themselves in bad faith or they set a precedent for future claims."
• This happens when adjusters try to force insurers to define ambiguous policy language, admit to past errors, or concede on coverage issues that aren't clearly defined.

The "Our Position Stands" Response:

• When faced with arguments that could lead to precedent-setting or admissions of wrongdoing, insurers often resort to the response, "Our position stands."
• The adjuster points out, "if you ever hit a brick wall like that you need to understand that you have just put them in a position where they're going to set a precedent or implicate themselves."
• This response is a strategy to avoid admitting fault and triggering potential ripple effects on other claims.

Litigation as a Strategic Ploy:

• Insurers may intentionally push cases towards litigation to create an opportunity for a "compromised settlement."
• The reasoning for this is, "once the suit is filed they can make a offer that is a compromised settlement and that compromised settlement gets rid of all the arguments that were made previously."
• This allows them to avoid admitting wrongdoing or creating precedents, settling the case purely on financial terms rather than principle.

Compromise as a More Effective Strategy:

• Instead of attempting to "prove them wrong," the adjuster advocates for a shift toward a compromise settlement approach, especially after encountering resistance.
• The key tactic is for the public adjuster to say to the insurance company, "we have discussed it and we are willing to accept a compromised settlement offer in the amount of X and if you'll agree to that we'll sign off on a release."
• This allows both parties to move forward without a costly and protracted legal battle and avoid setting precedent.

Public Adjusters Can Initiate Compromise Settlement:

• Public adjusters can directly negotiate a compromise settlement on behalf of their clients without the need for an attorney.
• The adjuster states, "For you Public Adjusters out there you're allowed to do that hey I talk to my client and we have agreed to accept a compromise settlement in the amount of X..."
• This tactic can help resolve claims faster and avoid a lot of legal expense, as long as the client has agreed to the settlement amount.

Focus on Client Needs:

• Ultimately, the adjuster emphasizes that the primary goal should be to get the client's needs met: "ultimately I just need to help my client be able to make repairs."
• The focus then shifts from winning an argument to achieving a fair resolution that allows the client to move forward.

Conclusion:

The most important lesson from this source is that successful negotiation with insurance companies requires understanding their motivations and avoiding confrontational approaches that can lead to resistance. Instead of trying to force admissions of wrongdoing, a focus on compromise settlements and client needs can be more effective for achieving favorable outcomes.

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Negotiating your bill with adjusters is negotiating against yourself.

I interviewed a new Restorer and expounded upon the importance of having solid contracts and understanding leverage in the claims environment.

#ThickestFileWins #VirtualInspections #RemoteEstimating #Contractors #CustomerCentricClaims #InsuredFirst #TheStructureSpeaks #restoration #largeloss #claimslife #estimating #Xactimate #CoverThatOverhead #dothehardthings #InsuranceClaims #LitigationSupport #appraisal #Matterport #DroneMeBro #3dscanning #drones

LARGE LOSS CONSULTING | APPRAISALS | XACTIMATE® | CLAIM SUPPORT

Get Matterport: https://amzn.to/3WUZbKs

I've included a "sample" CAT pricelist in my online course: FactorThatShit.com - 25% off code: CATTEAM

PLX/pricelist files in course documents

claimsdelegates.com/roofsketch

~ In 2012, Andy McCabe founded the property claim estimating and claims consultancy called Claims Delegates. Claims Delegates retains an army of dedicated professionals who write Xactimate® estimates for contractors, attorneys and adjusters across the country. They also consult on Large Loss and CAT events. They are currently accepting new client applications: WriteMySheet.com

Xactimate Estimates: http://www.claimsdelegates.com/xactimateestimates/

Schedule of Fees: https://www.claimsdelegates.com/feeschedule

One-On-One Restoration/Estimating Advice & Coaching: ClaimsDelegates.com/consult https://clarity.fm/andrewmccabe

The 24HR TECH mitigation documentation system: www.waterdamageprofit.com This training system and documentation package will help you train techs faster and get paid more for mitigation projects. The 24HR TECH on Amazon: https://amzn.to/2NVpZ9Y

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Jeremy Rettig brings on one of the most known names in the restoration business, Andrew McCabe. Andy is a 20-year veteran of the disaster recovery industry and has performed every function of a restoration professional from mold and water technician to marketing and estimating.

After working for several contractors in three states, Andy opened the independent Xactimate estimating & restoration consulting company Claims Delegates based in Bend, Oregon. He applies his knowledge and experience helping contractors navigate the strange world of insurance claims specializing in property damage insurance claims resolution and complex building envelope issues.

The two dive into entrepreneurial guilt, their different business models, and Jeremy shares a story of how he saved a teenager from being trapped in his car in the most recent storm.

What You Will Learn:

(*) Navigating the fine line of playing by the rules and compromising your integrity

(*) What are the Restoration Rebels?

(*) What are restoration companies today doing wrong?

(*) Why is restoration recession proof?

(*) Don't get taken advantage of

Links:

youtube: https://youtu.be/08WYL-SiOpI

andy@claimsdelegates.com

https://www.adjuster-university.com/

https://www.facebook.com/groups/RestorationRebel

https://www.linkedin.com/in/andymccabe/

https://www.claimsdelegates.com

https://twitter.com/claimsdelegates

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