Insurance Planning · Tool
Step 2 of 2 · AUM Impact
For Financial Advisors
Impact to AUM analysis

When a client is underinsured, the shortfall doesn't go away. It moves to your portfolio.

A large loss doesn't need to be a total loss to expose a coverage gap. When repair or rebuild costs exceed the dwelling limit, even partially, the difference becomes the client's problem. That money has to come from somewhere: retirement accounts, home equity, or the investment assets you manage. This analysis shows the real out-of-pocket cost of each funding option, built for the advisor conversation, not the insurance conversation.

Why reviewing rebuild cost falls within an advisor's fiduciary obligation
An underinsured home isn't just an insurance problem. It's a balance sheet risk that draws from assets you manage.
  • A $300,000 rebuild gap on a custom home can wipe out years of portfolio growth when funded from retirement accounts after taxes and penalties.
  • Documenting a rebuild cost review demonstrates fiduciary diligence on the entire balance sheet, not just investable assets.
  • Construction costs rose 30–40% between 2019 and 2024. Most dwelling limits did not keep pace, creating a silent, widespread exposure across client portfolios.
  • This conversation positions you as the advisor who sees around corners, protects the whole balance sheet, and has the documentation to prove it.
Advisor Access
Complete Step 1 to unlock this analysis
This full Impact to AUM analysis opens once you've run the Rebuild Cost Estimator and completed the short access form on Step 1. If you just submitted that form, it will open automatically. Otherwise, start with the estimator below.
401(k) distribution, taxes plus 10% penalty modeled
401(k) loan, IRS limits, interest, opportunity cost
HELOC draw, 10-year variable rate analysis
Taxable account, LTCG vs. short-term rates
Side-by-side true cost comparison chart
Advisor takeaway for each scenario
Start with the Rebuild Cost Estimator →
Already have an account?
Sign in to access the full analysis
Coverage gap to fund
$182,400
select a scenario to see its real cost
401(k) distribution
Highest cost
$296,104
true cost · +62% above gap
Taxable account sale
Most flexible
$214,588
true cost · +18% above gap
401(k) loan
Moderate risk
$241,320
true cost · +32% above gap
HELOC on equity
Lower cost
$337,440
true cost · +85% above gap
Submit your details above to unlock