InsurancePolicy FormAuditor
Castellan Precision Components, Inc.: 8 coverage gaps. A $500,000.00 sample loss comes up $408,392.75 short across 3 coverages ($258,392.75 of it coinsurance penalty), and $27,450,000.00 of value sits above limits and sublimits.
$8,500,000.00 x 90% = $7,650,000.00 required, $7,000,000.00 carried, and $8,500,000.00 - $7,000,000.00 = $1,500,000.00 of value sits above the limit. $500,000.00 x ($7,000,000.00 / $7,650,000.00) = $457,516.34 - $25,000.00 deductible = $432,516.34 paid, against $500,000.00 - $25,000.00 = $475,000.00 with no penalty: $42,483.66 short.
Method1Coinsurance (ISO CP 00 10, Additional Condition F.1): required limit = value x coinsurance %; when the carried limit is lower, the claim pays loss x (carried / required) - deductible, never more than the limit.
2Business income coinsurance (CP 00 30) uses the 12-month business income value on the SOV (net income plus continuing operating expenses); the 72-hour waiting period is not a dollar deductible.
| Location | Coverage | Issue |
|---|---|---|
| Location 1 | Building | Coinsurance penalty |
| Location 2 | Building | ACV valuation |
| Location 2 | Business Personal Property | Limit below full value |
Schedule of values and policy form and endorsement list
Coverage gap report with coinsurance penalty math (Coverage gap report, Coverage gaps (CSV), Coinsurance test (CSV))
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Read in memory for the session, never stored, never used to train a model.
Not insurance advice or a coverage opinion. A licensed broker or coverage counsel must review results.