MODULE 2: XACTIMATE MASTERY
Category-Specific Billing
Lesson 2.5 - The Billing Blueprint
1 / 16
The Billing Blueprint
Category Changes Everything
Water category doesn't just change a few line items.
It changes your
entire approach
.
Cat 1
Lowest billing
Cat 2
Medium billing
Cat 3
Highest billing
2 / 16
The Billing Blueprint
Category 1: Clean Water
Sources:
Supply line breaks, ice maker leaks, rainwater (no contact)
Simplest billing scenario
Focus: extraction, drying, restoration
No decontamination line items needed
3 / 16
The Billing Blueprint
Cat 1 Typical Estimate
Water extraction
Equipment rental (air movers, dehumidifiers)
Monitoring visits
Necessary demolition to access wet materials
Remember:
Cat 1 can upgrade. Water sitting 48-72 hours = Cat 2.
Document the timeline carefully.
4 / 16
The Billing Blueprint
Category 2: Gray Water
Sources:
Dishwasher discharge, washing machine overflow, toilet (urine only)
Contains significant contamination
Could cause illness if ingested
Requires more aggressive treatment
5 / 16
The Billing Blueprint
Cat 2 Additional Billing
Antimicrobial application
to wood framing, concrete
Cleaning charges
for affected surfaces
PPE charges
for technician protection
More aggressive demolition
- porous materials often removed
Document the water source clearly with photos and notes explaining the Cat 2 classification.
6 / 16
The Billing Blueprint
Category 3: Black Water
Sources:
Sewage backup, rising flood water, toilet (feces), soil/decay contact
Most aggressive treatment =
Highest billing
7 / 16
The Billing Blueprint
Cat 3 Requirements
Full removal
of ALL affected porous materials
Extensive antimicrobial
- multiple applications, fogging
Air scrubbers
with HEPA filtration
Containment setup
to prevent cross-contamination
Higher-level PPE
Specialty cleaning
for salvageable non-porous items
8 / 16
The Billing Blueprint
Cat 3 = Significantly Larger Estimates
Same affected area but
Cat 3
vs
Cat 1
?
Cat 3 estimate will be
much larger
because the required work is much more extensive.
9 / 16
The Billing Blueprint
Documentation by Category
Cat 1
Water source photos
Timeline notes
Sanitary supply confirmation
Cat 2
+ Contamination source
Photos of appliance/toilet
Gray water evidence
Cat 3
+ Clear contamination evidence
Sewage/flood photos
Biological hazards
10 / 16
The Billing Blueprint
Billing Tips by Category
Cat 1:
Don't over-bill with contamination protocols you didn't need. Accuracy is key.
Cat 2:
Don't forget antimicrobial, cleaning, PPE. Many contractors miss these.
Cat 3:
Don't underestimate scope. Extensive work = extensive estimate. Document thoroughly.
11 / 16
The Billing Blueprint
Classify at Initial Assessment
Category should be documented
before you start work
.
Initial assessment says Cat 2 + billing reflects Cat 2 protocols =
Everything aligns
12 / 16
The Billing Blueprint
If Category Changes
Discover during the job that contamination is worse than thought?
Document the discovery.
Note the date and reason for reclassification.
Update your estimate accordingly.
13 / 16
The Billing Blueprint
Module 2 Complete!
Xactimate software fundamentals
Line item selection for maximum reimbursement
Equipment billing strategies
Red flags to avoid
Category-specific billing protocols
14 / 16
The Billing Blueprint
Coming Up: Module 3
Estimates & Submission
Turn documentation into submission packages
Strategies for getting estimates approved
Follow-up communication that works
15 / 16
The Billing Blueprint
MODULE 2 COMPLETE
End of Lesson 2.5
Category-Specific Billing
See you in Module 3!
16 / 16
The Billing Blueprint