Insurance

Underinsurance Gap Calculator

Many South Africans are underinsured without realising it. If your cover doesn't match replacement value, the average clause means you'll pay more out of pocket on every claim - not just the gap.

How the average clause works

If you're insured for less than replacement value, every claim is reduced proportionally.
Payout = Claim × (Sum insured ÷ Replacement value)

Example: Contents worth R 500 000 insured for R 300 000. A R 100 000 burglary claim pays out only R 60 000.

Your insured items

Sum insured

Replacement value

Example claim (optional)

Coverage ratio88% - Slightly under

Underinsured by R 40 000 - you need to increase your sum insured to close this gap.

Sum insured

Replacement value

Example claim (optional)

Coverage ratio82% - Slightly under

Underinsured by R 400 000 - you need to increase your sum insured to close this gap.

Sum insured

Replacement value

Example claim (optional)

Coverage ratio60% - Significantly under

Underinsured by R 200 000 - you need to increase your sum insured to close this gap.

Summary

Overall coverage ratio

79%

Significantly under

Total sum insured

R 2 380 000

Total replacement value

R 3 020 000

Total underinsurance gap

R 640 000

Coverage per item

Vehicle88%

Insured: R 280 000Replacement: R 320 000

Home (building)82%

Insured: R 1 800 000Replacement: R 2 200 000

Home contents60%

Insured: R 300 000Replacement: R 500 000

≥100% Adequate80–99% Slightly under<80% Significantly under

Check your exact cover amounts with TEN

Upload your policy document and TEN will extract your actual sum-insured amounts, highlight hidden exclusions, and flag potential underinsurance clauses.

Upload my policy to TEN →

This calculator illustrates the impact of underinsurance using the standard average clause. Actual policy terms vary between insurers. Always check your policy wording or upload it to TEN for a detailed analysis. Insure110 does not provide financial advice.