Claims Payout Estimator

Estimate the net insurance payout after applying deductibles, coinsurance, and policy limits.

Total Claim Amount ($)

Deductible ($)

Coinsurance Rate (%) Insurer pays this % after deductible

Policy Limit / Coverage Cap ($)

Sub-limit for Specific Loss ($) 0 = no sub-limit

Salvage / Recovery Value ($)

Step 1 — After Deductible:
Amount After Deductible = max(Claim Amount − Deductible, 0)

Step 2 — Insurer's Coinsurance Share:
Insurer Share = Amount After Deductible × (Coinsurance Rate / 100)

Step 3 — Apply Sub-limit (if applicable):
After Sub-limit = min(Insurer Share, Sub-limit)

Step 4 — Apply Policy Limit:
After Policy Limit = min(After Sub-limit, Policy Limit)

Step 5 — Net Payout:
Net Payout = max(After Policy Limit − Salvage, 0)

Insured Out-of-Pocket (estimate):
= Deductible + (Amount After Deductible × (1 − Coinsurance/100)) + max(Insurer Share − Policy Limit, 0)

Coinsurance represents the insurer's percentage share of the loss after the deductible (e.g., 80/20 split means insurer pays 80%).
References: ISO Policy Forms; NAIC Claims Settlement Guidelines; Rejda & McNamara, Principles of Risk Management and Insurance, 13th ed.

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