Mold Claim Deductible Calculator

Formula used

1. Bucket costs: Mold bucket = remediation + testing + rebuild + other fees. Sales tax estimate = (rebuild + contents) × tax rate.
2. Apply sublimits and limits: Mold covered = min(mold bucket, mold sublimit) + endorsement extra. Contents covered = min(contents, personal property limit). ALE covered = min(ALE, ALE limit). Covered pre-deductible = min(sum, overall limit).
3. Coinsurance (optional): If insured amount < required % × replacement cost value, factor = insured / required amount, and covered is multiplied by that factor.
4. Settlement basis: Depreciation estimate = (rebuild + contents) × depreciation rate. For actual-cash settlement, it reduces payment. For replacement settlement, it is shown as potentially recoverable.
5. Deductible and payments: Net payout = max(0, covered after settlement − deductible). Remaining payout = max(0, net payout − prior payments).

How to use this calculator

• Enter your policy limits, including any mold sublimit.
• Add your remediation, inspection, repair, contents, and ALE costs.
• Choose settlement basis and a reasonable depreciation percentage.
• Set deductible type. Use percent only if your policy uses it.
• If coinsurance applies, enable it and enter required percent and RCV.
• Press Calculate. Review the payout, out-of-pocket, and the graph.

Example data table

Deductible mechanics for mold losses

Deductibles reduce what the insurer pays after limits and settlement adjustments. This calculator supports flat and percentage deductibles, including a dwelling-limit basis. If you enter a 2% deductible on a 200,000 dwelling limit, the deductible estimate is 4,000. When a waiver applies, the deductible becomes zero. Use the remaining payout and out-of-pocket KPIs to see how deductible structure changes cash flow planning.

Sublimits, limits, and cost buckets

Mold claims often include a special sublimit that caps remediation, inspection, repairs, and related fees. The tool groups remediation, testing, rebuild, and other eligible fees into a mold bucket, then applies the mold sublimit plus any endorsement extra coverage. Contents and additional living expense are capped by their own limits. A final overall limit can cap the combined covered total including estimated sales tax.

Settlement basis and depreciation timing

Policies may settle on actual cash value or replacement settlement. The calculator estimates depreciation on rebuild and contents using your rate input. Under cash value, depreciation reduces the paid amount directly. Under replacement settlement, the same amount is shown as potentially recoverable after repairs are completed and documented. Compare initial out-of-pocket versus out-of-pocket after recovery to understand the temporary funding gap.

Coinsurance and underinsurance impacts

Commercial property policies can apply coinsurance if the insured amount is below a required percentage of the replacement cost value. When enabled, the calculator computes a factor based on insured amount divided by required coverage, then reduces covered payment accordingly. For example, insuring 150,000 when 200,000 is required yields a 0.75 factor, lowering payment by 25%. Review the waterfall chart to see this penalty.

Interpreting results for budgeting decisions

The breakdown chart summarizes covered components, deductible, remaining payout, and estimated out-of-pocket. The waterfall chart shows step-by-step movement from total loss to remaining payout, highlighting uncovered amounts and adjustments. Use the composition donut to confirm which components drive coverage before reductions. Export CSV for claim files, and generate the PDF to share inputs and computed figures with stakeholders. Adjust inputs to match estimates, then rerun scenarios to document ranges and support negotiation during review.

FAQs

What costs should be placed in the mold bucket?

Enter remediation, inspection/testing, rebuild/repairs, and other eligible fees tied to mold work. The tool applies the mold sublimit to this combined amount, then adds any endorsement extra coverage. Keep ALE and contents in their own fields.

How does the calculator estimate sales tax?

Sales tax is estimated as (rebuild + contents) multiplied by your tax rate. This is a budgeting aid only. If your estimate already includes tax, set the tax rate to zero to avoid double counting.

What is the difference between replacement and cash value results?

Replacement settlement may withhold depreciation initially, then reimburse it after completed repairs and documentation. Cash value reduces payment by depreciation without later recovery. The calculator shows recoverable depreciation only for replacement settlement.

When should I enable coinsurance?

Enable coinsurance only if your policy includes a coinsurance clause. Enter the required percentage and the replacement cost value. If insured limits fall below the required amount, the tool applies a factor that reduces covered payment.

Why can remaining payout be zero even with expenses entered?

Remaining payout can reach zero when limits or sublimits cap coverage, coinsurance reduces payment, settlement reductions apply, the deductible is large, or prior payments exceed the net payout estimate. Review the waterfall chart to pinpoint the cause.

Do these results match an insurer’s exact worksheet?

No. This is a structured estimate to help you understand drivers of payout and cash flow. Policy wording, itemized adjuster scopes, exclusions, and documentation rules can change outcomes. Use exports to share assumptions clearly.