| Scenario | Claim | Exclusions | Deductible | Limit | Estimated Payment |
|---|---|---|---|---|---|
| Kitchen water loss | $12,500 | $500 | $1,000 | $300,000 | $10,800 |
| Wind roof repair | $18,000 | $0 | 2% Policy A | $250,000 | $12,500 |
| Fire smoke cleanup | $9,750 | $250 | $1,500 | $100,000 | $7,200 |
Deductible structure and exposure
Homeowners deductibles are commonly a flat dollar amount or a percentage of Coverage A. A 2% dwelling deductible on a $300,000 limit equals $6,000, which can exceed many mid-size repairs. This calculator converts policy language into a comparable deductible applied to your estimated net loss. Use it to test storm versus non-storm scenarios, then document the deductible in a CSV or PDF for your file.
From claimed loss to covered loss
The model starts with base claim amount, subtracts exclusions, and adds practical line items such as permits, emergency mitigation, and sales tax. Contractor overhead and profit can materially change the repair scope; for example, 10% overhead plus 10% profit adds 20% to eligible loss before tax. The covered percent slider helps represent partial denials or mixed-cause losses, producing a covered loss that can be capped by limits and sublimits.
Withholding, holdbacks, and settlement
Depreciation and holdback rates reduce the initial payment. Under ACV, depreciation typically remains withheld; under RCV, depreciation and holdbacks may be recoverable after repairs and documentation. The chart visualizes each withheld component alongside deductible and prior payments, so you can quickly see what is driving the payment outcome and what could be recovered later.
Coinsurance and underinsurance impact
Some policies apply coinsurance if the insured amount is below a required percentage of replacement cost. The calculator estimates a coinsurance factor as Carried ÷ (RCV × Requirement). If a home has an RCV of $400,000 with an 80% requirement, required insurance is $320,000. Carrying $240,000 yields a factor of 0.75, reducing covered loss and payment proportionally.
Using outputs for decisions
Review three numbers: net loss before deductible, deductible applied, and estimated payment after prior payments. Compare these to your cash flow and timeline. If a deductible waiver threshold or buyback applies, toggle it and capture both versions. For contractor negotiations, export the line items and limits to share with your adjuster, estimator, or accountant. Record assumptions, dates, and photos to support recovery later.
1) What deductible should I enter for a wind or hurricane claim?
Select the peril, then choose percent-of-dwelling if your declarations list a storm deductible. Enter your Coverage A amount so the percentage converts into dollars correctly.
2) Why add overhead, profit, and sales tax?
Many repair estimates include contractor overhead and profit, plus taxable materials and services. Adding these options helps match real invoices and can change whether the claim exceeds the deductible.
3) What is the difference between depreciation and holdback?
Depreciation reduces value for wear and age. Holdback is an extra amount withheld until work is completed. Under replacement-cost terms, both may be recoverable after documentation.
4) When should I enable coinsurance?
Enable it if your policy includes a coinsurance requirement and you suspect underinsurance. The factor reduces covered loss when carried insurance is below the required percentage of replacement cost.
5) How do prior payments affect the result?
Prior payments are subtracted from the gross payment to estimate what may still be owed. Use this when supplements, re-inspections, or additional invoices arrive after the first check.
6) Is the “insured share” an exact out-of-pocket number?
It is an estimate based on your inputs, limits, and withholding assumptions. Your final out-of-pocket depends on coverage decisions, recoverable amounts, and whether repairs are completed and documented.
- Enter the total claim amount for the covered damage.
- Add exclusions or salvage values that reduce covered loss.
- Set your coverage limit and any sublimit if applicable.
- Select settlement type and depreciation if your adjuster applies it.
- Choose the deductible basis shown in your declarations page.
- Click Calculate to see payment, deductible, and chart.
- Download CSV or PDF for records and sharing.