Rytvae Consulting · Think Right · Invest Right
Under-insurance Calculator
Result
Chart
Show formula & working
Claim = Loss × Sum insured ÷ Value at risk (when under-insured) − Excess, capped at the sum insured
Details
How this works
If you insure property for less than it is worth, you are treated as your own insurer for the gap — and every claim, even a small partial loss, is cut in that proportion.
Keep the sum insured in line with current values, especially after additions and price rises.
Frequently asked questions
Does the average clause apply to partial losses?
Yes. That is where it surprises most people — a small loss is cut in the same proportion.
Which value is used?
The value on the day of loss: market value for indemnity cover, or the cost of replacement as new for reinstatement cover.
Where is the excess?
In the policy schedule; it is applied to each claim.
Reviewing your cover?
Talk to Rytvae about how much cover you need and what your policy wording really pays.