Money & Pricing
Three-Trade Rule
A carrier guideline that allows overhead and profit for a general contractor when a loss needs three or more separate trades. It is a rule of thumb, not a policy term, and carriers apply their own versions, so answer a denial with your trade list. Some carriers use a different threshold, or none at all.
Full guide: op trap true budget insurance claims
More money & pricing terms
- Retainage
Money a customer or general contractor holds back from each progress payment until the job is finished and approved. It is usually a small percentage of the contract, though the rate and release rules depend on the contract and the state.
- Sales tax
Tax applied to materials and some services, depending on the state, added to the estimate where the jurisdiction charges it.
- True budget
What a job actually costs to complete, materials, labor, overhead, and profit, used to decide whether a carrier's payment covers the work.
- Unit price
The price Xactimate assigns to one unit of a line item, such as a square of shingles or one square foot of roof.
- Waste factor
The percentage of extra material added to cover cuts, breakage, and overlap, a cut-up roof needs a higher factor than a simple one.
Common questions
What does "Three-Trade Rule" mean in Xactimate estimating?
A carrier guideline that allows overhead and profit for a general contractor when a loss needs three or more separate trades. It is a rule of thumb, not a policy term, and carriers apply their own versions, so answer a denial with your trade list. Some carriers use a different threshold, or none at all.
Where does "Three-Trade Rule" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow, see the full guide for where it fits.
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