Frequently Asked Questions

The Holistiplan P&C Report helps financial advisors review a client's auto, home, and umbrella coverage alongside the rest of their financial plan. One of the insights the Report consistently surfaces is around auto coverage: specifically, whether carrying full coverage on a given vehicle still makes financial sense given what a client could actually receive at the time of loss. Before this tool existed, advisors had to work through that math manually. The Full Coverage Reality Check gives advisors a ballpark ACV estimate and runs the coverage cost analysis automatically, factoring in the client's deductible and annual premium.

No. The Full Coverage Reality Check is a standalone educational calculator designed to help anyone think through a single coverage question. The Holistiplan P&C Report is a comprehensive planning tool used by financial advisors to review a client's full insurance picture, document coverage gaps, and produce client-ready output. The calculator supports and informs the Report, but the two serve different purposes.

The calculator is publicly available and useful for anyone evaluating their auto coverage. Holistiplan subscribers can also use the estimated ACV as a reference data point when completing the auto section of the P&C Report, particularly when a client does not have a recent independent appraisal or insurer valuation to reference.

The P&C Report provides insight into full coverage whenever the data suggests it may be worth reviewing. That insight prompts the advisor to assess the vehicle's value relative to the cost of carrying coverage. The Full Coverage Reality Check was built to give advisors and their clients a simple, structured way to do exactly that.

It is a free educational tool that estimates a vehicle's current market value and helps advisors and clients think through whether the cost of carrying full coverage still makes financial sense. It is designed to give a starting point for a conversation with a financial advisor, not a definitive answer.

Just a few basics: vehicle age, type, and state of registration, followed by an approximate purchase price range, mileage range, overall condition, and any accident or damage history. If you also enter the annual premium for full coverage and the deductible, the tool will run a coverage cost analysis.

Your total auto insurance bill includes liability, uninsured motorist, medical payments, and other required coverages. For this tool, enter only the portion you pay for comprehensive and collision coverage, the coverages that pay out based on your vehicle's value. Check the declarations page or ask the insurance agent if unsure.

ACV is what the vehicle is worth today, not what was paid for it, and not what a comparable new vehicle costs. It is the depreciated market value at this moment. If the vehicle is totaled or stolen, ACV is the basis for what the insurance company pays out, minus the deductible.

The verdict is based on the annual premium as a percentage of the vehicle's estimated value, using the widely recognized 10% rule: under 6% of ACV means full coverage is generally reasonable, 6 to 10% is the borderline range worth a closer look, and over 10% is where the math typically starts working against the client. These are guidelines, not rules. Personal financial situation, financing, and ability to absorb a loss all matter.

This is the most a client could collect from the insurer if the vehicle were declared a total loss: the estimated ACV minus the deductible. This is the number that should anchor the decision about whether full coverage is worth carrying.

No. This tool provides an educational estimate to help think through coverage decisions. It is not an appraisal, an insurance settlement figure, or financial advice. Actual ACV determinations at the time of a claim are made by licensed adjusters using proprietary data, physical inspection, and the specific terms of the policy.

Not without first consulting a financial advisor or insurance professional. The tool is designed to surface the question and give a framework, not make the decision. Important factors the tool cannot account for include whether the vehicle is financed, personal financial resilience, and the local repair cost environment.

The tool applies a two-stage depreciation model by vehicle type, then adjusts for mileage, condition, damage history, and regional market factors. Depreciation rates are calibrated to publicly available data from sources including Kelley Blue Book and JD Power. Actual depreciation varies by make, model, and market conditions.

No estimation tool can account for every variable, including specific trim levels, color, maintenance records, local supply, and demand. The range reflects honest uncertainty. For a formal valuation, an insurance adjuster uses proprietary databases like CCC ONE or Mitchell that compare the specific vehicle to recent comparable sales in the area.

Think of them as two steps in the same conversation. The P&C Report is the diagnostic that surfaces coverage limits, gaps, and flags across every line of a client's policy, including endorsements like water backup, equipment breakdown, and scheduled personal property. The Break-Even Calculator is the financial filter. Once the Report tells you what risks exist and how they are covered, the Calculator helps you decide which of those coverage lines are actually worth the premium, given the client's financial situation. The Report generates the inputs. The Calculator stress-tests whether the transfer of risk makes financial sense.

The P&C Report flags that a client in a coastal state has a $10,000 water backup limit for $600 per year. You pull the annual premium ($600), the coverage limit ($10,000 max loss), estimate claim frequency for that region, and run it through the Calculator. If the client has significant liquid assets and the portfolio crosses the $10,000 threshold in just a few years, the math may favor self-insuring that specific line, especially if the premium is high relative to what the carrier would ever pay out. The Report found the question. The Calculator answered it.

Any coverage line where the premium feels high relative to the limit, or where claim frequency is low enough that a financially resilient client might reasonably absorb the risk. Common candidates include: water backup and sump overflow (limits often capped low while premiums can be meaningful), equipment breakdown (low claim frequency for most households), scheduled personal property (for clients whose net worth has grown significantly), higher deductible scenarios, and umbrella (to confirm why the limits are too large to self-insure).

Location changes the math in two important ways. First, the availability and cost of certain coverage lines vary significantly by state. Second, claim frequency is fundamentally a location-driven variable. A water backup claim in the Pacific Northwest might occur once every 8 years. The same endorsement in Arizona might go a lifetime without a claim. The same premium dollar buys very different real protection depending on where the property sits.

The P&C Report looks at the full picture of a client's coverage, what they have, what they are missing, where limits are misaligned with actual exposure, and what questions to bring to their insurance professional. It generates an agent letter with specific questions to resolve gaps. The Break-Even Calculator focuses exclusively on one question: for a coverage line already identified, does the financial math favor paying the carrier or self-insuring? They are complementary, not interchangeable.

It is a planning tool that answers one core question: Does it make more financial sense to pay premiums to an insurance carrier, or to invest that same money and self-insure the risk? The calculator shows the crossover point, the year at which an investment portfolio grows large enough to cover the maximum possible loss on its own.

Financial advisors who want to bring a numbers-driven lens to P&C conversations with clients. You already know the client's liquidity, risk tolerance, and investment picture. This tool connects those dots to their insurance decisions.

The defaults reflect a typical homeowner scenario: $3,000 annual premium, $1,000 deductible, $100,000 policy limit, a claim expected once every 17 years, a $25,000 average claim, 6% market return, 15-year horizon, and 6% tax drag. Adjust any input to reflect the client's actual policy and financial situation.

This is the year at which the investment portfolio funded by premiums invested instead of paid to a carrier grows large enough to cover the maximum covered loss. Once the portfolio crosses that threshold, the client could absorb a worst-case event entirely from savings. The tile appears green when the break-even falls within the current analysis horizon, and amber when it falls beyond it.

The calculator produces one of three verdicts: 'The math favors self-insurance' (green) means the portfolio exceeds the max loss within the horizon. 'Keep the coverage: the portfolio isn't there yet' (amber) means a single large claim could significantly set back the client's financial plan. 'Coverage is paying for itself' (teal) means the expected claim payouts exceed what the client pays in premiums.

No, and it should not be used that way. Whether to maintain, reduce, or restructure coverage depends on the client's full financial picture, liquidity, risk tolerance, and the specific policy terms. This tool is designed to open a smarter conversation, not close one.

The framing that works best is: you already know what this client can financially absorb, that is the core of what you do as their advisor. Now apply that same lens to their insurance. Some risks are too large or too likely to be self-insured regardless of net worth. Others are genuinely optional once the client has built enough liquidity and portfolio value to absorb a worst-case loss. The P&C Report identifies the risks. The Break-Even Calculator helps you and the client see clearly which transfers make sense and which ones the client is financially equipped to carry out themselves.

Claim frequency expresses how often you expect a loss to occur in plain language, 'once every 17 years', which is how most advisors and clients think about risk. Under the hood, the calculator converts this to an annual probability (1 divided by the frequency).

The calculator simulates the portfolio year by year and identifies the first year the balance meets or exceeds the max covered loss. If that year falls within the analysis horizon, it is displayed in green. If it falls beyond the horizon, the calculator extends the simulation up to 200 years to find it and displays it in amber.

No, this is a simplified model built for planning conversations, not actuarial precision. For high-value or long-horizon scenarios, it is worth discussing how the policy limit might need to grow alongside the portfolio.

When Holistiplan analyzes a homeowner's policy, one of the standard insights it surfaces is whether the client's all-peril deductible is at or near 1% of their dwelling value, a common carrier default that often made sense when the policy was first written but may no longer reflect the client's financial position. For a $600,000 home, a 1% deductible is $6,000. For a $1,000,000 home, it is $10,000. The insight flags this as a potential planning opportunity. The Deductible Optimizer is the tool you use to determine whether the opportunity actually makes sense for that client.

This is the most common advisor hesitation, and it is exactly what the Deductible Optimizer is designed to address. A $300 or $400 annual premium saving can feel dismissible in isolation. What the calculator shows is what that saving becomes when invested over time. At 7% over 15 years, $300 per year grows to roughly $7,500. At $400 per year over 20 years, it approaches $17,000. The chart makes the compounding story visible in a way that a single-year savings number never does. The framing for clients: this is not about saving $300 a year. It is about building a self-insurance pool that grows every year you do not file a claim.

The P&C Report is the starting point. It reads the client's declaration page, identifies the current deductible, and flags it if it looks like an opportunity worth exploring. The Deductible Optimizer is the next step, it takes the specific numbers from that policy and builds a client-ready projection. The advisor uses the Report to identify which clients to have the conversation with, and the optimizer to show those clients why the change makes sense in their situation.

A low deductible typically means higher premiums. For clients who have accumulated meaningful assets and liquid reserves, they may be paying for coverage they do not need, effectively overpaying to transfer a risk they could absorb themselves. The Report surfaces this so the advisor can have an intentional conversation about whether the current deductible aligns with the client's current financial picture, not just the one they had when they bought the policy.

The tool models the math, but the liquidity conversation is the advisor's job. Before recommending a higher deductible, confirm two things: first, that the client has liquid assets available to cover the new deductible without disrupting their plan if a claim occurs before the investment pool has had time to grow. Second, that those assets are genuinely accessible, not tied up in retirement accounts or illiquid investments. If both conditions are met, the higher deductible is almost always worth modeling.

Just a few things from the current policy: the current deductible, the deductible being considered, the estimated annual premium savings, and a rough sense of how often claims have been or are expected to be filed. The insurance agent can provide the premium savings at the new deductible.

This is how much less the client would pay in premiums each year if they raised the deductible. The best way to get this number is to call the agent and ask for a quote at the higher deductible. A $50 to $200 annual difference is common for modest increases. $300 to $800 or more is typical when moving from $1,000 to $5,000 on a higher-value home.

How frequently a claim is expected on this policy. The tool defaults to once every 9 years, which is near the national average for homeowners. If the home is in a low-risk area or the client has gone many years without a claim, set this higher. A higher number makes the case for the higher deductible stronger.

The additional amount the client would owe out of pocket on a claim, compared to the current deductible. This stays flat as a line on the chart. It is the risk being taken on.

The difference between the invested savings (future value) and the risk-adjusted claim cost over the same period. A positive number means the higher deductible works in favor of the client over the selected time horizon.

Point them to the chart. The moment when the green invested savings bars consistently clear the red exposure line is when the client has built enough of a cushion to absorb the full extra deductible out of the savings pool alone. Showing clients exactly when the crossover happens, often within the first 5 to 8 years, gives them a concrete milestone rather than an abstract promise.

The tool uses annual end-of-year compounding at 7%. Each year's premium saving is treated as a new contribution invested at the start of that year and allowed to compound for the remaining years in the model. The return rate is fixed at 7%, reflecting a widely cited long-term average for a diversified portfolio.

No. The 7% return is not adjusted for taxes, and the model does not adjust for inflation. Premium savings are treated as constant in nominal dollars, and the deductible exposure stays fixed. These effects roughly offset for most 10 to 20 year horizons, so the model is reasonable as an illustrative tool.

The Holistiplan P&C Report is a structured insurance review built into the Holistiplan platform. It pulls a client's personal lines policies and organizes the coverage details, limits, deductibles, and identified gaps into a single advisor-facing view. For clients in high-risk areas where coverage is unavailable or cost-prohibitive, the Report surfaces the exposure. This calculator is what the advisor uses next: to put a number behind the gap, project the self-insurance fund, and show the client what retaining that risk actually looks like over time.

When the Report shows a client's property in a high-risk zone where coverage is being non-renewed, priced out of reach, or is only available through non-admitted carriers, the natural advisor question is: what does it cost to retain this risk, and can the client afford to? This calculator answers that. It takes the property value and premium data visible in the Report and models whether a self-insurance fund is a financially viable alternative, or how large the gap is if it is not.

The standalone calculator runs on manually entered inputs. The in-app P&C Report pulls real policy data, coverage limits, deductibles, premiums, and carrier information, directly from a client's actual insurance documents through the Canopy Connect integration. Running the self-insurance analysis on real policy data produces a materially more accurate and defensible result than running it on approximations. The Report also creates a documented deliverable the advisor can share with the client and retain in the file.

Yes. The standalone calculator on the Holistiplan website is publicly available. That said, the calculator is most powerful when the inputs come from an actual client policy review, real premium, real deductible, accurate property value, rather than estimates. The P&C Report is where that verified data lives in a structured, advisor-ready format.

Insurance agents determine what coverage is available and at what price. The advisor's role is different. It is to help the client decide how much risk to transfer versus retain, based on their full financial picture. That is the same decision advisors help clients make in a portfolio (how much equity vs. bond exposure), in estate planning (how to title assets to protect them), or in any other planning context where the answer depends on the client's balance sheet, liquidity, and risk tolerance. Self-insurance is a risk retention decision, and it belongs in the financial plan.

Non-admitted (surplus lines) carriers are not licensed by the state department of insurance and are not covered by the state guaranty fund. In Florida and California, many clients in high-risk areas are being moved to surplus lines carriers because admitted carriers have exited. This changes the self-insurance comparison meaningfully: a non-admitted policy does not carry the same backstop as admitted coverage. If the carrier becomes insolvent, the claim may not be paid. For clients already in the surplus lines market, the certainty argument for buying insurance is weakened, and the self-insurance fund alternative deserves a more direct evaluation.

In portfolio construction, the advisor helps the client find the right balance between growth and protection based on their capacity and willingness to absorb loss. Insurance works the same way. Not every client needs to transfer every risk to a carrier. A client with high liquidity, a long time horizon, and a strong balance sheet may have the capacity to self-insure exposures that a less liquid client cannot. This calculator makes that capacity visible so the advisor can have the same structured conversation they have about equity risk, using numbers, not intuition.

The calculator has three input sections: Property and Peril (property value, peril type, annual premium, premium trend, and deductible), Loss Probability across all three tiers (total loss frequency, major partial frequency and severity, minor loss frequency and amount), and Self-Insurance Fund (initial fund balance, annual contribution, investment return, and projection horizon).

The replacement cost of the structure is not the market value or land value. For most residential properties, this is the dwelling coverage limit on the existing homeowners' or dwelling policy. If the property is uninsured or underinsured, use a rebuild cost estimate.

Wind/Hurricane (FL): total loss 1-in-40 years, major partial 1-in-15 years at 40% of value, minor loss 1-in-5 years at $30,000. Wildfire (CA): total loss 1-in-30 years, major partial 1-in-12 years at 55% of value, minor loss 1-in-7 years at $25,000. Flood: total loss 1-in-100 years, major partial 1-in-25 years at 35% of value, minor loss 1-in-8 years at $20,000. Custom: all fields open for manual input.

The verdict automatically classifies the position as strong, moderate gap, or significant gap based on how the projected fund compares to the maximum probable loss at the chosen horizon. Significant coverage gap means the fund covers less than 30% of the maximum probable loss. A moderate gap means 30 to 70% coverage. A strong self-insurance position means 70% or more coverage.

Three bars for each year: the annual insurance premium (escalating each year), the annual self-insurance contribution plus expected loss (the honest all-in cost of self-insuring), and the contribution only. The comparison shows what staying insured costs versus what self-insuring actually costs including expected losses.

Set the annual premium to $0 and focus on the Loss Probabilities and Fund vs. Requirement tabs. The analysis shifts to: how long before the fund reaches adequate coverage, how probable is a major loss event before that point, and what other liquid assets does the client have to bridge the gap.

The free estimator on this page is an informational starting point. The rebuild cost tool available inside Holistiplan is powered by Cotality, the same platform used by insurance carriers and underwriters, to set and validate dwelling limits. Cotality provides property-level valuation using actual home characteristics: square footage, year built, construction type, roof type, exterior finish, interior finish quality, number of stories, and more. It includes local material and labor cost data updated continuously, adjustments for code upgrade exposure based on the age and construction type of the specific property, and a printed itemized breakdown of how the replacement cost was calculated that can be shared with the client or insurance agent as documentation.

If a client disputes an insurance settlement after a major loss, a Cotality-generated replacement cost report is a standard of proof the industry recognizes. A figure from a general web estimator is not. Advisors who want to document their review of coverage adequacy and who want their clients to have a defensible number in hand need the in-app tool, not this one.

The analysis models four ways a client could fund the coverage shortfall: 401(k) distribution, 401(k) loan, HELOC on home equity, and taxable account sale with taxes, penalties, interest, and opportunity cost fully calculated for each. It shows the true out-of-pocket cost of each option, not just the gap amount itself. The gap number alone does not move advisors or clients to act. What moves people is seeing the gap translated into how much has to come out of the 401(k), what the tax hit looks like, and how many years of compounding get sacrificed.

Access is available to financial advisors who register on the Impact to AUM page for free, no credit card required. Current Holistiplan subscribers can access the analysis directly at holistiplan.com/rebuild-calculator-step-2.

Yes. The same Cotality-powered analysis available for primary residences is also available for landlord and investment properties inside Holistiplan. For advisors whose clients hold multiple rental properties, the exposure compounds quickly. Each underinsured property represents a separate potential draw on managed assets.

The estimate uses a formula-based model that multiplies a national base rate by three adjustments: a state cost factor, a local ZIP code adjustment, and a construction quality multiplier. The result is an effective cost per square foot, which is then multiplied by the living area entered.

Market value is what a buyer would pay for the home and land in today's market. Rebuild cost is what it would cost to reconstruct only the structure. These two numbers are rarely the same. In high-demand urban areas, land value can represent 20 to 50% of market value, meaning a $1.2M home might cost only $600,000 to rebuild. In rural areas, the opposite can be true: rebuild cost may exceed market value because contractor costs do not follow property prices downward.

Gap Identified means the current limit falls short of the estimate by more than 5%. Near Match means the current limit is within 5% of the rebuild estimate in either direction, though this does not mean coverage is guaranteed adequate. Construction costs shift over time, and an annual review is still recommended.

An approximation is fine for a first-pass estimate. Square footage can usually be found on a prior appraisal, the county assessor's website, or the client's homeowners policy declarations page.

The most effective framing is to start with the gap number from the rebuild cost estimator, then pivot: 'If this gap existed today and something happened to your home, where would this money come from?' The four scenario cards answer that question visually. Most clients have never been asked to think about it this way, and the numbers, especially the 401(k) distribution gross-up, tend to land hard.

Lead with whatever funding source the client would most likely reach for first. For most clients with significant retirement savings, that is the 401(k). Showing that a $175,000 gap requires pulling $280,000 from a 401(k), and what percentage of the account that represents is typically the moment the conversation shifts from abstract to urgent.

The tool calculates the gross withdrawal needed to net the gap amount after taxes and penalties. Example: a $175,000 gap at a 32% tax bracket requires pulling $280,000 from a 401(k). The difference of $105,000 goes to federal income tax and the 10% early withdrawal penalty.

The tool calculates the total repaid over a 10-year draw and repayment period at an estimated variable rate of 8.5%. The maximum HELOC line is modeled at 85% of the home equity entered. While the HELOC avoids income tax and early withdrawal penalties, it puts the home back at risk if repayment becomes difficult. The lender can foreclose.

No. This tool is informational only. It is designed to surface whether a conversation is worth having, not to serve as a formal valuation. For a precise replacement cost figure, clients should work with a licensed contractor, appraiser, or use the industry-grade valuation tool available inside Holistiplan.

These numbers are directionally correct planning estimates, not precise tax calculations. They are appropriate for framing the conversation and illustrating magnitude, not for quoting in a formal financial plan or tax filing.