There are several programs out there that you can use to bill the insurance company for your restoration job. But the one that I am going to talk about is the one that is most widely used and accepted in our industry and is necessary if you want to be on most Preferred Service Provider programs or PSP.
And trust me you want to look into as many of these programs that are in your area and get on them if they are good.
The software is Xactimate.
Xactimate is the insurance program that the majority of insurance companies use. If you are going to be on a preferred program an insurance company may actually require that you use Xactimate billing.
It’s important that you get this program and use it in your company. It will make things smoother for you and make you more usable by every insurance company across the board. You can use it on more than one computer. I believe the current fee is a $250 setup fee and then $250 a month or $1500 a per year if paid all at once. It’s not very expensive compared to how much money you can make with it.
This program is setup to communicate with insurance companies and in the way that they want to be communicated with.
You see when billing an insurance job you need to be able to break your charges down in the manner by which the insurance company processes them on their side. If you don’t you create more work for the adjuster and become a pain and that is not what you want.
What you want is for them to want you on every one of their jobs because you make their job easier. If you make their job more difficult than it already is they are going to potentially recommend that the insured they are working with consider working with another contractor. And if the job is one that is being run thru their PSP program you won’t get it unless you use Xactimate.
To understand how valuable this software is you need to understand how insurance companies process their claims on their end.
Insurance companies only pay for the property that was damaged by the loss that occurred. So if a room has two walls that need repainted they will only pay for those two walls not the entire room. Or if 17 lineal feet of floor trim is damaged they will pay to replace only 17 lineal feet not the entire room. This is assuming that it is able to be matched.Â
So the insurance company estimates repairs by the square foot, lineal foot and sometimes by the individual each item. You obviously need to understand which is which in the insurance world but Xactimate will automatically break those down for you by an area after you enter the entire dimensions of a room. The program also allows you to put in special things like notes and pictures attached to the particular item entered.
In Xactimate you can also easily break your bill down by the room and by the line item. And enter all the details that you want. And trust me you want tons of details on each billing.
When you are doing billing to the insurance company I want you to remember that they are not standing on the job site. They are not seeing everything that you have done like the homeowner has. For this reason you want to be very, very careful and detailed in your explanation of charges on your bill. The more detail you can give on a bill the less chance that you are going to have the adjustor call you or question you about anything. They will feel more comfortable pushing it right through so that you get paid right away.
Getting your scope of repairs and cleaning out to the insurance company very quickly is important. Not only does the adjustor want to process the claim quickly and get it closed. The faster you get your bill to the insurance company then the faster that you are going to get paid for the job. And that is what having a specialty program like Xactimate will do for you.
So as you can see to use an excel spreadsheet or a program like say Quick Books to send in your restoration billings you could be sabotaging your own invoices and thus success.