Insurance Claim Tools

Insurance Claim Settlement Calculator

A property claim’s remaining balance is not the same as its replacement-cost estimate. This calculator adds a separate supplement, applies depreciation and the deductible, then subtracts prior payments. It helps reconcile the numbers without deciding whether a supplement is accepted or a loss is covered. Texas guidance says additional damage can be discussed with the adjuster to seek a revised estimate. [1]

Results

Estimated remaining potential payment

$7,400

The modeled payment ceiling less prior payments—not a promise of another check. It can include unpaid initial payment as well as eligible recovery.

Replacement cost (RCV): $20,000
Depreciation (30%): $6,000
Actual cash value (ACV): $14,000
Deductible: $2,000
Estimated initial payment: $12,000
Potentially recoverable depreciation: $6,000
Additional payment from recovery: $6,000
Estimated potential total payment: $18,000
Prior claim payments: $10,600
Remaining initial payment: $1,400
Remaining potential payment: $7,400

How this was calculated

Gross RCV = $18,000 + $2,000 = $20,000
Depreciation rate = min(30%, 100% cap) = 30%
Depreciation = $20,000 × 30% = $6,000
ACV = $20,000 − $6,000 = $14,000
Initial payment = max($0, $14,000 − $2,000) = $12,000
Potential total = max($0, $20,000 − $2,000) = $18,000
Additional recovery = $18,000 − $12,000 = $6,000
Remaining potential = max($0, $18,000 − $10,600) = $7,400

Policy language, the insurer’s method, state rules, property condition, repair spending, limits, and exclusions can change these estimates. Math keeps full precision; displayed amounts are rounded to cents and may differ by a cent when added.

About these assumptions

Start with your estimate or use the editable example. All amounts are US dollars, not national cost averages. Enter replacement cost (RCV), not the first check.
Use the depreciation percentage on your estimate, or test an assumption. The cap still applies.
Maximum depreciation is an editable modeling assumption: 100% by default. Enter the cap from your estimate or policy if different.
The deductible is applied once to the claim, not again to the recovery payment.
Prior claim payments are the total insurer payments already made for this same scope. Do not include your deductible.
The added supplement is additional RCV not already included in the replacement cost. This simplified model applies the same depreciation rate to it.
Recoverable depreciation is an assumption, not a coverage decision. Recovery usually requires completed repairs and proof within the policy deadline. ACV-only policies may not pay it.

Worked example: supplement plus prior payment

Start with $18,000 base replacement cost, add a separate $2,000 supplement, use a manual 30% depreciation rate and $2,000 deductible, then enter $10,600 already paid. Recovery is enabled for this illustration.

Combined replacement cost: $20,000
Depreciation on combined scope: $6,000
ACV: $14,000
Initial modeled cumulative payment: $12,000
Initial-stage balance after prior payments: $1,400
Potential cumulative total with recovery: $18,000
Remaining potential settlement: $7,400

The remaining $7,400 includes any unpaid initial-stage amount and modeled recovery. Do not add those stages to the potential cumulative total again.

Settlement formula and supplement treatment

combined replacement cost = base replacement cost + separate supplement
depreciation % = min(cap %, manual % or age ÷ useful life × 100)
depreciation = combined replacement cost × depreciation % ÷ 100
ACV = combined replacement cost − depreciation
initial cumulative payment = max(0, ACV − deductible)
potential total if recoverable = max(0, combined replacement cost − deductible)
potential total if not recoverable = initial cumulative payment
remaining initial = max(0, initial cumulative payment − prior payments)
remaining potential = max(0, potential total − prior payments)

Added to base replacement cost before applying the same depreciation rate to the combined amount; exclude amounts already in the base estimate. Subtracted once from each modeled cumulative payment stage for the same scope, with remaining balances floored at zero. A supplement with a different depreciation treatment needs a separate line-item review, not this single-rate model.

Limitations

This does not determine coverage or a claim payment. Policy language, the insurer’s method, state rules, and property condition can change the result.
Straight-line depreciation and the editable 100% default cap are modeling assumptions, not insurer rules. A manual percentage replaces age/life math but remains subject to the cap.
Potential recovery usually requires completing eligible repairs, documenting the work, and meeting a policy deadline. The toggle does not verify those conditions; ACV-only coverage may not provide recovery.
Policy limits, separate deductibles, line-item depreciation, actual repair spending, and coverage exclusions are not modeled. No allowance for taxes, overhead, or code upgrades is added automatically; include only the scope you intend to compare.
A supplement entered here is an assumption, not insurer approval. The same depreciation percentage applies to the base scope and supplement; real estimates may treat items differently.
A zero remaining balance only means prior payments meet or exceed this model’s total. It does not establish an overpayment or an obligation to repay money.

Before comparing the result with a claim statement

Your revised estimate already includes added work: enter that total as the base and leave the supplement at zero to avoid double counting.
A supplement is still under review: compare a zero-supplement scenario with the proposed amount, but do not treat the difference as an approved payment.
Depreciation is not recoverable: switch recovery off. The remaining amount then reflects only the modeled ACV stage less prior payments.
Several coverages are involved: reconcile each scope separately. This calculator has one deductible and one depreciation rate.

Common questions

Should I enter the original estimate or the revised estimate?

Either can work if you avoid overlap. Enter the original base plus only the separate addition, or enter the revised total as the base with a zero supplement. Never include the same added work in both fields.

Does the supplement get depreciated?

In this model, yes: the same selected percentage applies to the combined base and supplement. This is an explicit simplifying assumption, not a universal insurer practice.

Why is the remaining initial payment different from the remaining potential payment?

The initial stage uses ACV less the deductible and prior payments. The potential stage may include recovery if enabled. Both are cumulative-stage balances, not separate amounts to add together.

Is my deductible subtracted from each check?

This model applies one deductible to the combined scope, then subtracts prior payments. It does not apply another deductible to a supplement or each check. Confirm whether separate deductibles apply to the actual loss or coverages.

Can this tell me whether the settlement is fair?

No. It reconciles the inputs, but does not assess damage, repair scope, pricing, policy limits, or coverage. Compare disputed line items with supporting documentation and ask the adjuster to explain differences.

Sources and methodology

Insurance explanations use Texas Department of Insurance consumer guidance, not nationwide payment rules. The arithmetic is a simplified model, not a published insurer schedule. Example dollar amounts are editable illustrations, not market repair prices.

Straight-line age divided by useful life, or a manual percentage override, limited by the editable depreciation cap. 100% is a modeling ceiling, not a claim that an insurer depreciates property fully. Policy language, the insurer’s method, state rules, and property condition can change the result.

[1] Texas Department of Insurance — Home insurance guide. Retrieved 2026-09-23. Texas consumer guidance. Definitions and repair-claim payment stages support the explanations, not a universal settlement formula. No national repair-cost figures are taken from this source.
[2] Texas Department of Insurance — Replacement cost or actual cash value?. Retrieved 2026-09-23. Illustrates the distinction between replacement-cost and actual-cash-value roof coverage. Its sample age/value figures are not adopted as a depreciation schedule.
[3] Texas Department of Insurance — Insurance and your roof. Retrieved 2026-09-23. Roof-specific Texas guidance. This shorter page describes further payment after repairs start, whereas the full guide describes the bill for a finished job. We do not universalize either timing: policy requirements and the adjuster's instructions must be checked.

This tool provides an educational estimate only. Insurance companies, contractors, and building officials may calculate these figures differently depending on policy language, property condition, local pricing, and applicable codes.

Disclaimer: Calculators and information on this site are provided for educational and estimating purposes only. Results do not determine insurance coverage, claim payments, repair requirements, or professional recommendations.