Claims
Insurance Claim Payout & Deductible Calculator
A repair estimate is not the same as an insurance payment. Calculate how deductibles, depreciation, coverage limits, and ACV or replacement cost coverage may affect your property claim payout.
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Frequently asked questions
How is an insurance claim payout calculated?
The insurer usually begins with the amount of covered damage. It then applies the relevant coverage limit, depreciation when applicable, and the policy deductible. Other sublimits, exclusions, and settlement conditions may also affect the final payment.
What is the difference between ACV and replacement cost?
Actual cash value generally pays the repair or replacement cost after subtracting depreciation. Replacement cost coverage generally pays without a final depreciation deduction, although the insurer may withhold depreciation until repairs or replacement are completed.
Why is my insurance payment lower than the repair estimate?
The repair estimate may not account for your deductible, depreciation, policy limits, uncovered work, or special sublimits. The insurer may also issue an initial ACV payment and hold back recoverable depreciation until the work is finished.
Is the deductible subtracted from every claim?
A deductible generally applies to each covered occurrence, but policies and coverage types differ. Some policies have separate deductibles for wind, hurricane, hail, earthquake, flood, or other losses.
How does a percentage deductible work?
A percentage deductible is often calculated from the insured value listed in the policy, not from the amount of damage. A 2% deductible on $350,000 of dwelling coverage would be $7,000.
What is recoverable depreciation?
Recoverable depreciation is depreciation initially withheld from a replacement cost claim that may become payable after the damaged property is repaired or replaced and the required evidence is submitted.
Will I always receive all the recoverable depreciation?
Not necessarily. The amount may depend on what you actually spend, the applicable coverage limit, completion deadlines, submitted invoices, and the conditions written in your policy.
What happens if the repair cost exceeds my policy limit?
The insurer will generally not pay more than the applicable coverage limit unless the policy contains extended or guaranteed replacement cost protection. The remaining amount may become the policyholder’s responsibility.
Should I file a claim if the damage is close to my deductible?
Consider the estimated covered damage, deductible, documentation, urgency of repairs, and potential effect of making a claim. You can ask your insurer or licensed insurance professional how the relevant policy provisions work before formally submitting the claim.
Is this calculator an official insurance estimate?
No. It provides a simplified educational estimate. Only the insurer can determine coverage and calculate the official payment after reviewing the damage, policy language, deductible, limits, documentation, exclusions, and applicable laws.