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Interactive guide · Insurance

How to Calculate Insurance Claim Value

Work out what a property or liability claim should pay after depreciation and deductible.

Open as a plain tool
The formula

How this number is built

payment = min(basis × (1 − coinsurance), limit) − deductible + living expenses
Step by step

Calculating it yourself

Step 1

Document the loss with photographs and a room-by-room inventory before cleanup begins.

Step 2

Get an independent replacement estimate rather than accepting the adjuster's first figure.

Step 3

Check whether your policy settles on replacement cost or actual cash value — the gap is large.

Step 4

Apply depreciation only to the items your policy actually depreciates.

Step 5

Subtract the deductible last, and add living expenses if the property is uninhabitable.

Questions

What people ask next

What is recoverable depreciation?

The withheld portion of a replacement-cost claim, released after you prove the repair or replacement was completed.

Why was a coinsurance penalty applied?

Because the property was insured for less than the required percentage of its value, the insurer pays a proportionally reduced share.

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Local rules

Where this applies

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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.