The insurer's motion for summary judgment to dismiss the insured's complaint challenging the use of Xactimate to determine the repair costs for fire damage was granted. Belotti v. State Farm Fire & Cas. Co., 2025 U.S. Dist. LEXIS 54471 (M.D. Pa. March 25, 2025).

Plaintiffs' home was damaged by fire. After submitting a claim to State Farm, a claim specialist visited the site to inspect the loss. State Farm also hired a contractor, Edward Gieda, to assist with the plaintiffs' claims. Mr, Gieda sent his initial draft estimate to State Farm. Mr. Gieda's initial draft estimate and State Farm's estimate used an estimating software tool, Xactimate. State Farm selected Xactimate's "new construction" labor efficiency for the estimate. The "new construction" tool was selected because the plaintiffs' home would not be occupied during the repair work and because once demolition was completed and the wall finishes removed, the repair would would essentially be new construction.

State Farm estimated the Replacement Cost Value (RCV) to be $172,015.39 and the Actual Cash Value (ACV) payment, after applying the policy's deductible, to be $130,852.61. State Farm sent a check of $130,852.61. The plaintiffs' public adjuster provided State Farm with a repair estimate he prepared with a RCV of $374,069.77. The public adjuster's estimate also used Xactimate, but with the application of the "Restoration/Service/Remodel" labor efficiency setting.