InsuranceCoverageTools

Coverage Gap Analyzer

Compare the coverage you need against the coverage you hold, and estimate what closing the difference would cost.

Last reviewed

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Free · No sign-up · Runs in your browser

Under-insurance is rarely a decision. It is what happens when the amount you need changes and the policy does not - a renovation, a pay rise, a new debt, a rise in construction costs. The policy keeps renewing at a figure that was correct once.

This analyzer states the gap plainly and, given a rate per $1,000 from a quote, estimates the annual and monthly cost of closing it.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Coverage gap

$140,000

Estimated annual cost to close

$448

Status
Under-insured against the stated need
Coverage needed
$620,000
Coverage in force
$480,000
Share of need covered
77.42%
Surplus
$0
Estimated monthly cost
$37

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

The cost to close the gap uses the rate per $1,000 you entered. Rates change with age, health, property characteristics and carrier.

How to use the coverage gap analyzer

  1. Enter the coverage amount you have determined you need.
  2. Enter the total coverage currently in force.
  3. Enter the rate per $1,000 from a recent quote, if you have one.
  4. Read the gap, the share already covered, and the estimated cost to close it.

What people use this for

  • Turning a needs analysis into a specific amount of extra coverage to buy.
  • Checking whether a policy has kept pace with rising rebuild or replacement costs.
  • Estimating the budget impact before requesting an endorsement.
  • Reviewing coverage after any change that moved the requirement.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A property that has been renovated

$620,000 needed against $480,000 in force, at $3.20 per $1,000.

Coverage gap
$140,000
Estimated annual cost to close
$448
Share of need covered
77.42%

Already adequately covered

The same need with $650,000 in force.

Coverage gap
$0
Status
Need is covered
Surplus
$30,000

Why gaps open quietly

Most policies renew automatically at broadly the same limits. Meanwhile construction costs rise, possessions accumulate, debts change and incomes move. Nothing in that process prompts a review, so the gap opens without anyone deciding it should.

Inflation guard endorsements address part of this for property policies by raising the limit automatically each year, and they are frequently the explanation when a premium rises with no other change. They are not a substitute for checking the underlying figure.

Closing a gap is not always a new policy

Endorsing an existing policy upward, adding a rider, or buying a smaller second policy alongside the first are all routes, and which is cheapest depends on the original policy and on your circumstances now.

Where health or the risk profile has changed since the original policy was issued, options built into that policy - guaranteed insurability, conversion rights, automatic increase provisions - can be worth considerably more than a fresh application.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • The gap is the needed amount minus the amount in force, floored at zero. A surplus is reported separately.
  • The cost to close applies the rate per $1,000 you entered to the gap. It is an estimate, not a quote.
  • All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

How do I decide what I need?

It depends on the line of business - rebuild cost for property, a needs analysis for life, exposure for liability. Use the calculator built for that question, then bring the figure here.

Where does the rate per $1,000 come from?

Divide a quoted annual premium by the coverage in thousands. If you have no quote, leave it at zero and the gap is still reported.

Is a surplus a problem?

Coverage costs money every year. A large persistent surplus is budget that could go elsewhere - though check any options built into the policy before reducing it.

How often should I check?

After any significant change, and otherwise every two or three years. Requirements move more than most people expect.

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