Coinsurance Calculator

The Coinsurance Calculator helps users determine the required insurance amount, actual coinsurance percentage, penalty factor, recovery amount, and penalty amount based on property value, insurance coverage, coinsurance requirement, and loss amount inputs.

Use Our Coinsurance Calculator

Using the Coinsurance Calculator

This guide provides step-by-step instructions to effectively use the Coinsurance Calculator. This tool helps you determine the required insurance amount based on coinsurance requirements, assess penalties, and calculate recovery amounts for losses.

Step 1: Enter the Property Value

  • Property Value ($): Start by entering the current value of the property. This is a required field and should be a positive number. Use whole numbers only.
  • Ensure that you input a value greater than zero to meet the minimum validation requirement.

Step 2: Specify the Insurance Amount

  • Insurance Amount ($): Input the coverage amount you have for the property. This field is also mandatory and expects a whole number greater than zero.

Step 3: Select the Coinsurance Requirement

  • Coinsurance Requirement: Choose from the available options (80%, 90%, or 100%). This selection is crucial as it determines the minimum insured value you must maintain.
  • The selection is required and affects the subsequent calculations.

Step 4: Enter the Loss Amount

  • Loss Amount ($): Indicate the value of the loss experienced. Like the other fields, this is required and should be input as a positive whole number.

Step 5: Review the Calculated Results

Once all inputs are provided, the calculator will present the following results:

  • Required Insurance Amount: This is calculated as the property value multiplied by the selected coinsurance requirement. It shows how much insurance you should carry.
  • Actual Coinsurance Percentage: This represents the actual coverage in comparison to the required insurance, displayed as a percentage.
  • Penalty Factor: A ratio showing how your current coverage matches the required amount, calculated to four decimal places.
  • Recovery Amount: The actual payout you can expect for the loss, considering any potential penalties.
  • Penalty Amount: The difference between the total loss and the recovery amount, this value indicates any shortfall you experience due to insufficient coverage.

Ensure all input values are correct to get accurate results, closely monitor the outputs especially the penalty and recovery amounts to make informed insurance decisions.