How to accurately calculate repair, replacement costs

An appraisal may help an insured secure adequate repair costs. (Photo: iStock)

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Question: My client lives in Marin County, Calif., where the costs of the building trades are much higher than in other areas. A dispute has arisen because the cost of painting the house on the inside, via a contractors sub-bid, is roughly double what the Xactimate program estimated the cost to be. The insured will have actually expended an amount in excess of the settlement, based on Xactimate pricing, in doing the actual repair. The insureds position is that the insurer owes what the insured “actually and necessarily” spent for the repair of the like and kind and not what a computer platform estimates it to be, for the purpose of resolving the claim. What would the Insured be entitled to, the amount spent or the estimated amount by Xactimate for the same work?