Insurance
Insurance Claim Settlement Calculator
Apply an entered depreciation percentage to replacement cost to estimate actual cash value, subtract the policy deductible, cap the result at the applicable coverage limit, and show the remaining replacement-cost amount not covered by the modeled settlement.
Actual cash value estimate-
Estimated amount after deductible-
Estimated settlement-
Estimated uncovered amount-
Exact scenario comparison
Policy deductible scenarios
Exact scenario comparisonPolicy deductible changes while all other entered assumptions remain constant.
| Policy deductible | Actual cash value estimate | Estimated amount after deductible | Estimated settlement | Estimated uncovered amount |
|---|
How to use Insurance Claim Settlement Calculator
- Enter a documented replacement-cost estimate, the depreciation applied to the claimed property, the correct deductible, and the applicable coverage limit or sublimit.
- Review actual cash value, amount after deductible, capped settlement, and modeled uncovered replacement cost as separate layers.
- Compare the estimate with policy wording, adjuster calculations, evidence requirements, recoverable depreciation, exclusions, and claim-specific decisions.
Calculator guide
Understanding Insurance Claim Settlement Calculator
A property claim estimate often moves through four distinct layers: replacement cost, depreciation, deductible, and policy limit. Displaying those layers separately helps explain why the cash-value settlement can be materially lower than the cost to replace damaged property.
Worked situations
Practical examples
- A $42,000 replacement estimate with 20% depreciation produces a simplified actual cash value of $33,600 before deductible and limit.
- Enter the deductible applicable to the specific cause of loss and coverage section rather than a general policy figure.
- Use the limit that applies to the claimed property or sublimit, not automatically the policy's largest headline limit.
Better inputs
Useful tips
- Keep contractor estimates, inventories, receipts, photographs, age and condition records, and adjuster correspondence.
- Check whether the policy pays actual cash value first and releases recoverable depreciation after documented replacement.
- Review coinsurance, sublimits, exclusions, valuation clauses, ordinance coverage, and additional expenses separately.
Before relying on the result
Limitations and common mistakes
- The page assumes one uniform depreciation rate, one deductible, and one simple coverage cap.
- Cause of loss, policy eligibility, coinsurance, multiple coverage parts, recoverable depreciation, taxes, debris removal, code upgrades, mitigation, subrogation, and claim expenses are excluded.
- Policy language, evidence, adjuster findings, insurer decisions, law, and appraisal or dispute procedures control the actual settlement.
Reference
Key terms
- Replacement cost
- Entered amount to replace the damaged property without deducting depreciation.
- Actual cash value
- Replacement-cost estimate reduced by the entered depreciation percentage.
- Deductible
- Entered portion of the covered loss subtracted before modeled insurer payment.
- Coverage limit
- Maximum amount applied by this simplified model after depreciation and deductible.
Important note
A claim settlement is the modeled amount remaining after covered loss, policy limits, deductibles, depreciation, coinsurance, and other entered adjustments are applied.
Frequently asked questions
Is depreciation always nonrecoverable?
No. Some replacement-cost policies may release recoverable depreciation after qualifying repair or replacement and documentation.
Why can uncovered amount exceed the deductible?
It can also include depreciation and loss above the applicable limit.
Does the calculator decide whether a loss is covered?
No. Coverage depends on policy language, cause, exclusions, conditions, evidence, and insurer or legal determinations.
Should taxes and contractor overhead be included in replacement cost?
Use a replacement estimate consistent with the policy and local claim practice; those items may be treated differently by claim and jurisdiction.