Coinsurance Penalty Clause
Calculator

Inputs

Required minimum insurance
320,000

Results

Required minimum insurance
320,000
Coinsurance compliance ratio
0.75
Claim recovery
75,000
Coinsurance penalty
25,000

Insurance and risk results

Required minimum insurance320,000
Coinsurance compliance ratio0.75
Claim recovery75,000
Coinsurance penalty25,000

formula-map diagram

Required minimum insurance
320,000
Coinsurance compliance ratio
0.75
Claim recovery
75,000
Coinsurance penalty
25,000

Coverage and risk relationship

Formula

Recovery = Loss × min(1, carried ÷ (coinsurance % × replacement value)), capped at loss and amount carried

= 320000

Note

This is generic arithmetic using the amounts, rates and factors you entered. It is not an insurance quote, a policy interpretation, or financial advice. No insurer rate, jurisdiction rule, statutory limit or policy wording is built in. Real premiums and payouts depend on underwriting, your policy's exact terms and exclusions, and applicable regulation; confirm with your insurer or a licensed professional.

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