Home Insurance Claim, ACV & Underinsurance Calculator
Home Insurance Claim, ACV & Underinsurance Result
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How this result is calculated
A clear calculation path based on your inputs.
Inputs usedReview the information used for this result.
Full calculation and sourcesReview the equation, normalized inputs, assumptions, and version.
Versioned calculationFormula v1.0.0
Method
The entered values are normalized, validated, and passed to the versioned calculation.
Important boundary
This result is an estimate. Confirm important decisions against the relevant source or professional guidance.
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Result + assumptionsInterpretation
The result reflects the current inputs and selected workflow.
Calculated with the versioned 1.0.0 model.
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Method and test recordFormula v1.0.0
- Recorded scope
- Not recorded
- Publisher
- CalculatorGeek
- Recorded review date
- Not recorded
- Next source review
- Not scheduled
- Definition fixtures
- 1 configured scenarios
- Published examples
- 1 shown below
Recorded method
No tool-specific review method has been recorded.
These records describe the published model and reference tests. A test-case count is not a certification of every possible input or an independent specialist review. Editorial policy
Known limitations
Method sources
Reference inputs and expected results
Up to 12 examples from the configured definition fixtures are shown. Expected values use the stated output units; invalid inputs are intended to be rejected.
| Case | Inputs | Expected result |
|---|---|---|
| Reference case | Market and currency: us; Replacement value used by the policy: 500000 currency; Applicable property limit: 300000 currency; Coinsurance or average requirement: 80 pct; Covered replacement-cost loss: 100000 currency; Valuation basis: rcv; Entered depreciation for ACV scenario: 0 pct; Applicable deductible or excess: 5000 currency | Required insurance for entered clause: 400000; Insurance-to-requirement ratio: 0.75 %; Loss after entered valuation basis: 100000; payout_before_deductible: 75000; Modeled claim payout: 70000; Loss not paid in modeled result: 30000; Modeled underinsurance reduction: 25000 (allowed numeric tolerance: 1.0E-6) |
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What this calculator answers
Claim payment can be reduced by valuation basis, deductible, limits and an underinsurance or average clause. This calculator keeps those steps separate and inspectable.
Reproduce claim arithmetic from written policy inputs without estimating rebuild cost or coverage eligibility.
Method and calculation order
The entered limit is divided by the required insurance amount to create a factor capped at 1. That factor applies to the RCV or depreciated ACV loss, subject to the policy limit, before deductible.
Worked reference example
A 500,000 replacement value with an 80% requirement needs 400,000 insurance. Carrying 300,000 creates a 75% factor; a 100,000 covered loss becomes 75,000 before a 5,000 deductible.
How to use the result
Use only the clause and values in the policy or adjuster worksheet. Separate building, contents, sublimits, code upgrade, debris removal and additional living expense.
What the calculator cannot know
Policies differ and some losses or jurisdictions use different underinsurance rules. The tool does not estimate rebuild cost, determine coverage, settle a claim or replace an adjuster or legal advice.
Frequently asked questions
Does every policy apply an 80% rule?
No. Enter the actual written requirement or do not use this workflow.
Why show ACV and RCV separately?
Depreciation can apply at a different stage and replacement-cost holdback may require completed replacement.
Primary sources and review status
- NAIC — Homeowners Insurance
- NAIC — Actual Cash Value vs Replacement Cost
- NAIC — How Insurance Works
Sources and model boundaries checked 2026-10-08. This new opportunity-map expansion has automated formula, fixture and source QA but has not been represented as human editorial review. Keep the route noindex until CalculatorGeek records a completed YMYL editorial review.