Insurance coverage gap.

Worked example

Life: $800,000 needed and $500,000 held is a $300,000 gap (63% covered). Disability: $3,600 a month needed against $1,800 is a $1,800 monthly gap. Liability: $1,800,000 to protect against $1,000,000 of limits is $800,000 short. Home: $510,510 replacement cost against $450,000 is 88% covered, which is above the 80% mark of $408,408 but $60,510 short of full. That is 4 lines to review.

How it works

For life, disability and liability: gap = need - coverage, and percent covered = coverage / need. For the home, coverage is compared with the replacement cost and flagged when it is above 80% but below 100%, following the 80% guideline Liberty Mutual describes. Needs come from you: use the DIME-method life insurance calculator, the disability calculator, the replacement cost calculator and the umbrella calculator.

Sources and basis (opened 2026-10-08): arithmetic on the needs and coverage you enter. The 80% home-coverage guideline is described by Liberty Mutual, “What is the 80% rule for home insurance?” (page updated September 14, 2026).

FAQ

What is an insurance coverage gap?

It is the difference between the cover you need and the cover you have, such as a life policy smaller than your family would need or liability limits below your net worth.

Where do I get the numbers for need?

Use the sister calculators for life, disability, home replacement cost and umbrella liability, or your own advisor’s figures.

Why is the home line judged differently?

Many home policies expect dwelling cover of at least 80% of replacement cost, so a limit between 80% and 100% is flagged but not shown as a full shortfall.

Do I need every type of cover?

No. Leave a line blank to skip it. Only the lines you fill in are checked.

Does being covered mean I am protected?

Not necessarily. Policies have exclusions, deductibles and caps. This tool only compares the limits you enter.