Coverage Gap Calculator
Calculate your insurance coverage gap — the difference between net exposure (assets minus liabilities) and current coverage amount.
How to Use the Coverage Gap Calculator
- Enter total assets value.
- Enter current insurance coverage amount.
- Enter total liabilities.
- Click Calculate to see coverage gap and coverage ratio.
Casos de Uso
- •Reviewing adequacy of home or business insurance.
- •Identifying underinsurance before policy renewal.
- •Planning insurance increases for growing asset portfolios.
- •Advising clients on closing their coverage gaps.
Fórmula
Net exposure = assets − liabilities. Gap = max(0, net exposure − current coverage). Coverage ratio = coverage / net exposure × 100%.
Preguntas Frecuentes
What is a coverage gap?
A coverage gap is the difference between your net financial exposure and what your insurance actually covers. It represents uninsured risk.
What coverage ratio is adequate?
A coverage ratio of 100% or more means you are fully covered. Below 80% suggests significant underinsurance risk.
What happens if I have a coverage gap?
In the event of a total loss, you would receive the coverage amount but still face the gap amount as an out-of-pocket loss.