Property Damage Settlement Estimator
Estimate your property damage insurance settlement by entering repair costs, item age, policy details, and coverage type. Results are estimates only and do not constitute legal or insurance advice.
Formulas Used
1. Depreciation (ACV only — straight-line method):
Depreciation Rate = Age ÷ Useful Life
Depreciation Amount = Repair Cost × Depreciation Rate
ACV = Repair Cost − Depreciation Amount
2. Covered Loss:
Covered Loss = ACV (or Repair Cost if RCV) × (Liability % ÷ 100)
3. After Deductible:
After Deductible = max(Covered Loss − Deductible, 0)
4. Total Before Limit:
Total = After Deductible + Additional Living Expenses
5. Estimated Settlement:
Settlement = min(Total Before Limit, Policy Limit)
Assumptions & References
- Depreciation is calculated using the straight-line method: equal depreciation each year over the property's useful life. Some insurers use accelerated or schedule-based depreciation.
- Replacement Cost Value (RCV) pays the full cost to repair or replace damaged property with new materials of like kind and quality, without deducting for depreciation (ISO HO-3 / CP forms).
- Actual Cash Value (ACV) is generally defined as Replacement Cost minus Depreciation (per Broad Evidence Rule and most state insurance codes).
- The Liability Percentage accounts for co-insurance clauses, comparative fault, or partial coverage scenarios. A value of 100% means the insurer bears full responsibility.
- Additional Living Expenses (ALE) / Loss of Use coverage is treated as a separate line item and is not subject to the same deductible in most standard homeowners policies (ISO HO-3, Coverage D).
- The settlement is capped at the Policy Coverage Limit as stated in the declarations page of the policy.
- This tool does not account for: co-insurance penalties, sublimits (e.g., jewelry, electronics), ordinance or law coverage, flood/earthquake exclusions, or bad-faith damages.
- References: ISO HO-3 Homeowners Policy Form; NAIC Property & Casualty Insurance Model Regulation; Couch on Insurance §175 (ACV definition); IRC §165 (casualty loss deduction guidance).
- This estimate is for informational purposes only. Consult a licensed public adjuster or insurance attorney for claim-specific advice.