Proportional underinsurance claim scenario
Insurance / FREE CALCULATOR
Illustrate a proportional reduction using insured value divided by replacement value.
Your answer starts here.
Enter your values and select Calculate to see the result and any available breakdown.
How to use this calculator
- Enter eligible loss. Use the unit shown beside the field.
- Enter sum insured. Use the unit shown beside the field.
- Enter replacement value. Use the unit shown beside the field.
- Select Calculate and review the result. Select Reset to restore the example inputs.
How the calculation works
min(Eligible loss,Sum insured/Replacement value*Eligible loss)
Worked example
Eligible loss = 10000; Sum insured = 30000; Replacement value = 40000. Result: 7500.
Understand your result
Illustrate a proportional reduction using insured value divided by replacement value. The result is expressed in the same currency or unit as the monetary inputs.
Assumptions and limitations
Only use to understand a stated average-clause scenario; actual wording, limits and excesses vary. Results are rounded for display.
Questions about this tool
What does this tool calculate?
Illustrate a proportional reduction using insured value divided by replacement value.
What should I check before using the answer?
Only use to understand a stated average-clause scenario; actual wording, limits and excesses vary.
Related guides
Guides will appear here when published and linked by the editor.