Xactimate Level 2 Certification Exam Prep 2025–
2026 | Verified Application Questions with Correct
Answers & Detailed Rationales | Complete Test
Bank & Study Guide for Estimating, Insurance
Adjusting, and Property Claims Professionals
1. What is the primary purpose of Xactimate software?
o A) To manage payroll
o B) To create detailed estimates for insurance claims and construction
projects
o C) To track inventory
o D) To manage customer relations
Correct Answer: B
Rationale: Xactimate is designed for estimating costs associated with
repairs and reconstruction in the insurance and construction industries.
2. Which of the following is a key feature of Xactimate?
o A) Customer relationship management
o B) Pricing database for materials and labor
o C) Financial reporting tools
o D) Project scheduling
Correct Answer: B
Rationale: Xactimate includes an extensive pricing database that helps
estimators calculate costs accurately.
3. What does "line item" refer to in Xactimate?
o A) A summary of total costs
o B) A specific entry in an estimate detailing a particular task or item
o C) A type of material
o D) A project timeline
Correct Answer: B
Rationale: A line item represents individual tasks or materials that
comprise the overall estimate, each with its own cost.
,4. Which of the following statements is true about using templates in
Xactimate?
o A) Templates cannot be edited.
o B) Templates save time by providing a pre-structured estimate format.
o C) Templates are only for insurance estimates.
o D) Templates cannot include custom line items.
Correct Answer: B
Rationale: Templates allow users to create consistent estimates quickly
by utilizing pre-defined structures.
5. What is the function of the "Sketch" feature in Xactimate?
o A) To create financial reports
o B) To develop a visual representation of the property layout for
estimating purposes
o C) To track client interactions
o D) To manage project timelines
Correct Answer: B
Rationale: The Sketch feature allows users to create diagrams of
properties, aiding in accurate estimations based on dimensions.
6. What does the term "scope of work" mean in the Xactimate context?
o A) The budget for the project
o B) A detailed description of the work to be performed
o C) The timeline for project completion
o D) The list of materials required
Correct Answer: B
Rationale: The scope of work outlines the specific tasks involved in a
project, ensuring clarity in the estimate.
7. How does Xactimate facilitate collaboration among team members?
o A) By providing email tools
o B) Through cloud-based features that allow shared access to
estimates
, o C) By integrating with project management software
o D) By offering training programs
Correct Answer: B
Rationale: Cloud-based functionality enables multiple users to access
and collaborate on estimates in real time.
8. What is the importance of "local pricing" in Xactimate?
o A) To standardize costs across all regions
o B) To reflect accurate costs based on specific geographic locations
o C) To simplify the estimating process
o D) To provide a uniform pricing structure
Correct Answer: B
Rationale: Local pricing ensures that estimates account for regional
variations in labor and material costs.
9. What is the role of the "XactAnalysis" tool?
o A) To manage employee schedules
o B) To analyze claims data and improve estimating accuracy
o C) To track customer feedback
o D) To generate marketing reports
Correct Answer: B
Rationale: XactAnalysis helps users review and analyze claims data,
enhancing the accuracy and efficiency of estimates.
10. What does "uploading a file" in Xactimate allow users to do?
o A) Change the software settings
o B) Include additional documentation or images related to the
estimate
o C) Delete existing estimates
o D) Share templates
Correct Answer: B
Rationale: Uploading files allows users to provide supporting
documentation, such as photos or reports, to enhance the estimate's
accuracy.
, 11. What is the benefit of using "macros" in Xactimate?
o A) To create individual line items
o B) To automate repetitive tasks and improve efficiency
o C) To analyze project timelines
o D) To manage client communications
Correct Answer: B
Rationale: Macros streamline the estimating process by allowing users to
apply common sets of tasks or line items quickly.
12. What is the purpose of "labor rates" in Xactimate?
o A) To estimate material costs
o B) To determine the cost of labor for specific tasks based on local
rates
o C) To calculate project timelines
o D) To manage subcontractor relationships
Correct Answer: B
Rationale: Labor rates are essential for accurately calculating the total
cost of labor involved in an estimate.
13. How can users ensure accuracy when estimating using Xactimate?
o A) By guessing the costs
o B) By regularly updating the pricing database and verifying local rates
o C) By using only default settings
o D) By avoiding client consultations
Correct Answer: B
Rationale: Keeping pricing data current and verifying local costs are
crucial for producing accurate estimates.
14. What does the "Proposal" feature in Xactimate allow users to do?
o A) Create a project timeline
o B) Generate a formal document outlining the estimate for clients
o C) Track inventory
2026 | Verified Application Questions with Correct
Answers & Detailed Rationales | Complete Test
Bank & Study Guide for Estimating, Insurance
Adjusting, and Property Claims Professionals
1. What is the primary purpose of Xactimate software?
o A) To manage payroll
o B) To create detailed estimates for insurance claims and construction
projects
o C) To track inventory
o D) To manage customer relations
Correct Answer: B
Rationale: Xactimate is designed for estimating costs associated with
repairs and reconstruction in the insurance and construction industries.
2. Which of the following is a key feature of Xactimate?
o A) Customer relationship management
o B) Pricing database for materials and labor
o C) Financial reporting tools
o D) Project scheduling
Correct Answer: B
Rationale: Xactimate includes an extensive pricing database that helps
estimators calculate costs accurately.
3. What does "line item" refer to in Xactimate?
o A) A summary of total costs
o B) A specific entry in an estimate detailing a particular task or item
o C) A type of material
o D) A project timeline
Correct Answer: B
Rationale: A line item represents individual tasks or materials that
comprise the overall estimate, each with its own cost.
,4. Which of the following statements is true about using templates in
Xactimate?
o A) Templates cannot be edited.
o B) Templates save time by providing a pre-structured estimate format.
o C) Templates are only for insurance estimates.
o D) Templates cannot include custom line items.
Correct Answer: B
Rationale: Templates allow users to create consistent estimates quickly
by utilizing pre-defined structures.
5. What is the function of the "Sketch" feature in Xactimate?
o A) To create financial reports
o B) To develop a visual representation of the property layout for
estimating purposes
o C) To track client interactions
o D) To manage project timelines
Correct Answer: B
Rationale: The Sketch feature allows users to create diagrams of
properties, aiding in accurate estimations based on dimensions.
6. What does the term "scope of work" mean in the Xactimate context?
o A) The budget for the project
o B) A detailed description of the work to be performed
o C) The timeline for project completion
o D) The list of materials required
Correct Answer: B
Rationale: The scope of work outlines the specific tasks involved in a
project, ensuring clarity in the estimate.
7. How does Xactimate facilitate collaboration among team members?
o A) By providing email tools
o B) Through cloud-based features that allow shared access to
estimates
, o C) By integrating with project management software
o D) By offering training programs
Correct Answer: B
Rationale: Cloud-based functionality enables multiple users to access
and collaborate on estimates in real time.
8. What is the importance of "local pricing" in Xactimate?
o A) To standardize costs across all regions
o B) To reflect accurate costs based on specific geographic locations
o C) To simplify the estimating process
o D) To provide a uniform pricing structure
Correct Answer: B
Rationale: Local pricing ensures that estimates account for regional
variations in labor and material costs.
9. What is the role of the "XactAnalysis" tool?
o A) To manage employee schedules
o B) To analyze claims data and improve estimating accuracy
o C) To track customer feedback
o D) To generate marketing reports
Correct Answer: B
Rationale: XactAnalysis helps users review and analyze claims data,
enhancing the accuracy and efficiency of estimates.
10. What does "uploading a file" in Xactimate allow users to do?
o A) Change the software settings
o B) Include additional documentation or images related to the
estimate
o C) Delete existing estimates
o D) Share templates
Correct Answer: B
Rationale: Uploading files allows users to provide supporting
documentation, such as photos or reports, to enhance the estimate's
accuracy.
, 11. What is the benefit of using "macros" in Xactimate?
o A) To create individual line items
o B) To automate repetitive tasks and improve efficiency
o C) To analyze project timelines
o D) To manage client communications
Correct Answer: B
Rationale: Macros streamline the estimating process by allowing users to
apply common sets of tasks or line items quickly.
12. What is the purpose of "labor rates" in Xactimate?
o A) To estimate material costs
o B) To determine the cost of labor for specific tasks based on local
rates
o C) To calculate project timelines
o D) To manage subcontractor relationships
Correct Answer: B
Rationale: Labor rates are essential for accurately calculating the total
cost of labor involved in an estimate.
13. How can users ensure accuracy when estimating using Xactimate?
o A) By guessing the costs
o B) By regularly updating the pricing database and verifying local rates
o C) By using only default settings
o D) By avoiding client consultations
Correct Answer: B
Rationale: Keeping pricing data current and verifying local costs are
crucial for producing accurate estimates.
14. What does the "Proposal" feature in Xactimate allow users to do?
o A) Create a project timeline
o B) Generate a formal document outlining the estimate for clients
o C) Track inventory
