If you’ve filed a water damage or property loss claim in Virginia, chances are you’ve heard this familiar line from an insurance adjuster:
“We can only pay what’s customary or industry standard.”
It sounds official. It sounds reasonable. But in most cases, it’s nothing more than a tactic used to undervalue your restoration claim and reduce your payout.
At Restoration Doctor 24/7 Rapid Response, we’ve seen insurance carriers across Fairfax, Alexandria, and Arlington misuse this phrase to deny legitimate contractor invoices. This blog will help you understand the truth behind “industry standard pricing” — and how to protect your rights during a home insurance claim in Virginia.
1. “Industry Standard Pricing” Is a Misleading Term
When an adjuster claims they can only pay “industry standard” rates, they want you to believe:
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There’s a universal pricing model for all restoration work
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Every contractor in Virginia charges the same
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Anything above that amount is excessive or inflated
This is false.
Restoration contractors are independent businesses, not subject to a fixed price sheet. Their pricing reflects:
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Labor and expertise
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Equipment and materials
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Emergency response availability
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Local market demand
There is no legal, national, or state-mandated price list for damage mitigation or restoration services.
2. There Is No Official “Standard” Price List for Restoration
Contrary to what insurers suggest, there is no government or regulatory body that defines what is “reasonable” for restoration billing. Contractors in Virginia set their rates based on:
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Job complexity
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Market rates in their region
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Safety risks and building access
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Equipment usage and overhead
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Certifications and quality of service
Your insurance company cannot dictate pricing based on internal benchmarks alone. The open market defines reasonable costs, and your signed contract reflects the real agreement.
3. Estimating Software Like Xactimate Is Not Law
Insurers often rely on software like Xactimate or Symbility to justify underpayments. These programs offer baseline pricing averages — but they are not the rule of law.
In fact, the Xactimate User Agreement itself states:
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Price lists are adjustable
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Custom pricing is permitted based on project specifics
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No guarantee of accuracy is made
Insurers often cherry-pick these numbers to produce artificially low estimates — while ignoring the actual conditions and scope of your job.
If your claim is denied or reduced based on “software pricing,” it may constitute a violation of Virginia’s Unfair Claims Practices Act.
4. Your Contractor’s Invoice Defines Reasonableness — Not Software
When you hire a licensed restoration company and sign a contract:
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You agree to a price based on real work and real conditions
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Your contractor is accountable for completing that work
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That invoice becomes the standard for your claim
Insurance companies are obligated to indemnify you — to restore your home to pre-loss condition — not to rewrite your project with imaginary pricing after it’s completed.
If they do, they’re not just being difficult — they may be violating insurance regulations in Virginia.
5. What to Do If You’re Told “That’s Not Industry Standard”
Here’s how to respond effectively:
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Request it in writing. Ask the adjuster to show the exact policy language or law that defines pricing limits (they won’t find one).
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Stand your ground. Your contractor’s pricing is lawful and market-driven.
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Provide evidence. Share documentation, invoices, and photos showing the scope of work and damage.
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Escalate if necessary. File a complaint with the Virginia Bureau of Insurance or consult an attorney familiar with bad faith insurance practices.
Bottom Line: You Choose the Contractor — Not the Pricing Software
Virginia homeowners have the right to:
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Choose their own licensed restoration contractor
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Be reimbursed for the actual costs of completed work
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Receive fair treatment under Virginia insurance law
At Restoration Doctor, we don’t accept underpayments, vague guidelines, or manipulated software pricing. We stand up for homeowners when insurance companies try to undercut their recovery.
📞 Need help with a low claim payout or insurance dispute?
Contact us now or call our 24/7 response team for expert support.
