MODULE 2: XACTIMATE MASTERY
Red Flags & Approvals
Lesson 2.4 - The Billing Blueprint
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The Billing Blueprint
Automatic Flagging
Insurance companies use
software algorithms
to flag estimates
before a human even looks at them.
Multiple red flags = detailed review queue =
delays + scrutiny + reductions
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The Billing Blueprint
Red Flag #1: Equipment vs. Square Footage
The Problem:
200 SF of damage with 40 air movers = flagged
IICRC standard: 1 air mover per 10-16 SF = should be 12-20 units
The Solution:
Include notes explaining equipment calculations. Show your math. Reference IICRC standards.
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The Billing Blueprint
Red Flag #2: Days vs. Dry Standard
The Problem:
Dry logs show dry standard reached Day 5, but billing for 8 days of equipment.
The Solution:
Ensure equipment days match your dry log timeline. Document any legitimate reasons for additional days.
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The Billing Blueprint
Red Flag #3: Excessive Demolition
The Problem:
Removing all drywall in a room for a small water leak. Demolition should be proportional to damage.
The Solution:
Document demolition decisions with photos and moisture readings showing why removal was necessary at each location.
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The Billing Blueprint
Red Flag #4: Category Upgrades
The Problem:
Billing Cat 3 rates when water source was a supply line discovered within hours. Supply line = Cat 1.
The Solution:
Clearly document water source, timeline, and any factors supporting your category classification in estimate notes.
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The Billing Blueprint
Red Flag #5: Mismatched Line Items
The Problem:
Smoke odor treatment on a water loss. Mold remediation on a 24-hour-old loss. Line items don't match loss type.
The Solution:
Review estimate before submission. Does every line item make sense for this specific loss?
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The Billing Blueprint
What Gets Approved Quickly
Clean estimates with expected patterns get approved with
minimal pushback
.
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The Billing Blueprint
Approval Boosters
Complete documentation
- all photos, logs, authorization attached
Clear organization
- logical grouping, consistent formatting
Detailed notes
- explain decisions before questions are asked
Accurate measurements
- math that makes sense builds trust
Supporting references
- IICRC standards, manufacturer specs
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The Billing Blueprint
Pre-Submission Checklist
?
Equipment count aligns with SF?
?
Equipment days match dry logs?
?
Demolition supported by readings?
?
Category classification documented?
?
All line items make sense?
?
Supporting docs attached?
Yes to all?
Ready to submit.
No?
Address the gaps first.
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The Billing Blueprint
The Power of Notes
Use the notes field to
answer questions before they're asked
.
Why this equipment count? Why demolition extended here? What was the water source?
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The Billing Blueprint
Reference Standards
When you reference
IICRC standards
, manufacturer specs, or industry guidelines...
You're showing your scope is based on
established protocols
,
not arbitrary decisions.
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The Billing Blueprint
Key Takeaways
Algorithms flag before humans review
Stay within expected ranges or explain why
Documentation prevents most red flags
Notes answer questions proactively
Use the pre-submission checklist every time
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The Billing Blueprint
Coming Up Next
Lesson 2.5: Category-Specific Billing
Billing protocols for Cat 1, 2, and 3
How category affects your entire approach
Documentation requirements by category
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The Billing Blueprint
MODULE 2: XACTIMATE MASTERY
End of Lesson 2.4
Red Flags & Approvals
See you in the next lesson!
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The Billing Blueprint