Claim scenario
What would a claim really pay?
Enter a few numbers. See what the insurer pays after a loss, and what comes out of your pocket.
These are example numbers. Replace them with your own.
On a CAD 4,000,000 loss, the insurer pays CAD 3,000,000. You pay CAD 1,000,000.
- Co-insurance penalty: CAD 1,000,000. The policy requires CAD 8,000,000 (80% of the replacement cost). The building is insured for CAD 6,000,000, only 75% of that, so where the clause applies the claim is cut to 75%.
Assumes the co-insurance clause applies to this loss and is calculated on replacement cost.
Not sure your replacement cost is right?
That number drives everything above. Remit prepares independent insurance replacement cost valuations for commercial buildings.
How this is calculated
Simplified illustration on a replacement cost basis, for a covered loss. With the building's own limit: where a co-insurance clause applies (no small-loss waiver), the insurer pays (amount insured ÷ amount required) × loss, never more than the loss; the deductible is then taken off, and the payment is capped at the amount insured. See how co-insurance works. With a blanket limit: the building's limit is the margin percentage × the value reported for it, never more than the blanket limit; the deductible is taken off the loss, and the payment is capped at that limit. Co-insurance is not included in the blanket-limit illustration. See how a margin clause works. Real claims depend on the terms and conditions of your policy, and this is not advice about your policy.