BTLA BROKER / UNDERINSURANCE CALCULATOR
Your policy has a sum insured.
Your property has its current value.
A sum insured that is too low may mean paying part of the loss yourself. Enter three amounts and see a simplified example underinsurance. BTLA can help review the sums insured and terms before another loss occurs.
THREE AMOUNTS / CLEAR ASSUMPTIONS
Does your sum insured keep up with the value?
See how a simplified claim settlement changes when the sum insured is below the property value.
Assumption before calculating: the model applies a proportional reduction (average) unless you select first-loss cover or the tolerance entered disapplies it. We first apply the proportion, then deduct the excess, and finally apply the sum insured limit. The OWU may provide for a different order or method of calculation.
A lower sum insured can mean a larger shortfall.
Enter your own scenario or use the example. You will see two versions of the same model.
YOUR EXAMPLE / WHAT DO THESE FIGURES MEAN?
Part of the loss left for you to fund in this model
This is a simplified simulation, not an awarded compensation amount. Payment depends on the policy terms and the circumstances of the loss.
See the detailed calculation and assumptions
- Shortfall against the property's value
- Result using your chosen settings
- Without the average clause
- Part of the loss outside the model result
- With the sum insured equal to the property value
- Difference between the scenarios
This adds the summary to the form below. You decide whether to send it.
Also check the cost of downtime →How do we calculate it? Full assumptions and limitations
With the average clause: loss × ratio, followed by deducting the excess entered and applying the sum insured limit. Without the average clause: the loss less the same excess, up to the sum insured. The result cannot fall below zero. The full-sum comparison keeps the excess and changes the sum insured to the property's value. Amounts are rounded to grosze.
- We assume a covered loss within one homogeneous category of property, with amounts stated on a comparable basis. A loss exceeding the property value triggers a warning about an inconsistent scenario.
- We include an excess only if you enter one. We disregard sublimits, non-deductible franchises, previous payments and other limitations. The entire sum insured is assumed to be available.
- Average does not automatically apply in every policy. Relevant factors include the insurance basis, contract wording, underinsurance tolerances and an assessment of whether a particular provision is permissible.
- This does not assess lost profit or whether a particular decision is correct. The actual payment could be higher or lower.
A higher sum insured does not replace checking the scope of cover. A review also compares exclusions, limits and valuation methods.
LET'S TALK ABOUT YOUR POLICY
Want to check sums insured and terms?
Attach the result using the calculator button or describe the issue in your own words. An audit enquiry does not commit you to taking out insurance.
Call us 32 307 70 37Send an email [email protected]
Already have a claim refusal or disputed payment? →Insurance audit enquiry
Insurance audit: start with your needs. You can add the details during our conversation.
Service hours: Mon–Fri, 8:00–17:00
What next? After you submit the enquiry, our team will contact you about it and establish what information is needed for a review.
A topic is enough to start. The BTLA team will agree with you what information and documents are needed.
Service hours: Mon–Fri, 8:00–17:00.
Conversations in Polish or English.
The data controller is BTLA BROKER LEADER sp. z o.o., al. Wojciecha Korfantego 138A lok. 114, 40-156 Katowice. We will use the data provided to handle your enquiry and contact you about it. Details of data processing and your rights are available in the privacy policy. Privacy policy (new tab).
BEAVER AND SUPERPARROT / BUSINESS IN PRACTICE
The business grew. What about the policy sum?
Beaver bought more machines, built a hall and filled the warehouse. He renewed his policy just as he had the year before. Until a loss occurred.
Check whether your sum insured keeps pace with your business. The calculator shows a simplified underinsurance example; actual settlement depends on factors including the insurance basis, contract wording and property value.
@btla_official · video in PolishThe business grew. What about the policy sum?
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FROM THE RESULT TO COVER
Your business has changed. Has your policy?
A new hall, buildings and equipment increase the value of your assets. If sum insured stays unchanged, you may have to fund part of the loss yourself. The calculator shows a simplified mechanism — an audit lets us check how your contract works.
BTLA compares the property covered and the valuation basis, and checks the average clause, limits and exceptions. It then helps organise sums insured and how they are updated.
Discuss your situation ↑WHAT NEXT AFTER THE RESULT?
Reviewing sums insured starts the conversation.
The same valuation basis
We compare the same property components and valuation bases, such as reinstatement, depreciated or book value. The balance sheet value may not reflect the cost of reinstatement.
Discuss this coverCurrent scale of operations
New machinery, an expanded hall, equipment and higher stock levels may change the sum insured needed. We also check how fluctuations in value are accounted for.
Discuss this coverThe specific policy terms
The review covers average and exceptions, limits, excesses and the scope of cover. The calculator itself does not assess the enforceability of policy provisions.
Discuss this coverQUESTIONS BEFORE CONTACTING US
Let’s establish what you can expect.
Does underinsurance always reduce a claim payment proportionally?
No. The outcome depends on the contract, insurance basis and circumstances of the particular case. The calculator illustrates a simplified average clause; it does not establish whether applying it to your policy is permitted.
Should I enter net or gross amounts?
Use a basis consistent with your contract and how the property value is assessed. All three amounts should be comparable. If you are unsure, we will clarify this when reviewing the policy.
Why is the missing sum insured greater than the difference between the results?
The missing sum insured compares the total value of the specified property with the policy sum insured. The difference between the scenarios relates to a single loss entered. They are two different figures.
Do you store the amounts entered?
Not while calculating. You may choose to add the result to the form. Only submitting that form sends its contents to BTLA under the privacy policy.
What causes underinsurance?
It arises when the sum insured is lower than the property value established on the appropriate basis. Higher rebuilding costs, new investments or a sum copied from last year's policy can widen the gap.
Example without a tolerance or excess: a hall worth PLN 2,000,000, a sum insured of PLN 1,200,000 and a loss of PLN 500,000. At a 60% average ratio, the model result is PLN 300,000; the remaining PLN 200,000 falls outside that result.
A review should also consider updating sums insured, automatic cover for new investments or leeway clauses, tolerance and first-loss cover where suitable for the insured property and policy terms. None of these replaces reading the contract.
A loss can also interrupt operations — calculate the downtime →TAKE A WIDER VIEW
Explore further
More about underinsurance: PZU — changing the sum insured. The calculator's mechanism is explained alongside the result and does not analyse any specific product.