Insurance & protection · 183

Coverage gap

What replacement value remains above current coverage and savings?

Your numbers

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Quick answer

What does the Coverage gap calculate?

What replacement value remains above current coverage and savings? This calculator uses estimated replacement value, policy coverage limit, and savings available for loss to estimate unfunded replacement exposure immediately in your browser.

With the values currently entered, the result is $17,000.00estimated unfunded gap. It also shows coverage plus savings, and funded share.

How to use the Coverage gap

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Estimated replacement value
  • Policy coverage limit
  • Savings available for loss

Coverage gap formula

Replacement value − coverage limit − available savings

Assumptions

  • Replacement value and limits cover the same property.
  • Deductibles and excluded causes of loss are not included.

Verify the inputs

Authoritative sources

These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.

Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.

Practical guide

Coverage gap example and edge cases

What replacement value remains above current coverage and savings? Let's use a concrete example, then look at the assumptions that can move the answer.

Example: A practical coverage gap scenario

For this example, use estimated replacement value of 85,000, policy coverage limit of 60,000, and savings available for loss of 8,000. These are starting values, so replace them with numbers that match your situation.

Estimated replacement value
85,000
Policy coverage limit
60,000
Savings available for loss
8,000

Calculated result$17,000.00estimated unfunded gap

Start with estimated unfunded gap. Then check coverage plus savings, and funded share to understand what sits behind the main result.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the main result first. The supporting figures for coverage plus savings, and funded share explain how the estimate is built.
  • The method is Replacement value − coverage limit − available savings. Keep the units consistent and use values from the same time period.

Edge cases worth checking

When estimated replacement value is unusual

Replacement value and limits cover the same property. Double-check this input before relying on the result.

When savings available for loss is uncertain

Deductibles and excluded causes of loss are not included. Run a lower and higher value to see a useful range.

What changes the result most

Estimated replacement value

Use a current amount for estimated replacement value. Include fees or recurring costs that belong in the same figure.

Policy coverage limit

Use a current amount for policy coverage limit. Include fees or recurring costs that belong in the same figure.

Savings available for loss

Use a current amount for savings available for loss. Include fees or recurring costs that belong in the same figure.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Estimated replacement value: 10% lower

76,500

$8,500.00estimated unfunded gap

Estimated replacement value: 10% higher

93,500

$25,500.00estimated unfunded gap

Policy coverage limit: 10% higher

66,000

$11,000.00estimated unfunded gap

Common mistakes

Check estimated replacement value

Replacement value and limits cover the same property. Make sure this matches the number you enter.

Keep savings available for loss consistent

Deductibles and excluded causes of loss are not included. Use the same units and time period throughout the calculation.

Do not rely on one coverage gap scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

What replacement value remains above current coverage and savings?

Do not use it as

The policy wording, exclusions, limits, and insurer decision control real coverage.