Free Tool

Mortgage Coverage Gap Calculator

See exactly how much your family would be short, or how well covered they'd be, if something happened to you today.

How this works: Enter your remaining mortgage balance and any existing life insurance you already carry. The calculator instantly shows whether your family would have a financial shortfall if you passed away today, and how many months of mortgage payments your current coverage would support. These are estimates only; speak with a licensed agent for a complete protection review.

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Enter 0 if none

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Coverage Gap
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Months of Payments Covered
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months
Uncovered Balance
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Estimates are for informational purposes only and do not constitute a quote, offer, or guarantee of coverage. Colorado Home Protection LLC is a licensed insurance agency in the State of Colorado (Producer License #22115252). Coverage is subject to carrier approval and individual eligibility.

Not sure how much coverage you need? A free review takes under 10 minutes.

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Why Coverage Gaps Are Common for Colorado Homeowners

Colorado's rapid home price appreciation over the past decade has left many homeowners significantly underinsured. A household that purchased a $350,000 home in the Denver metro area in 2015 and took out a 30-year mortgage likely still carries a balance of $275,000 or more today, far exceeding the $100,000 to $200,000 life insurance policies that were common a decade ago. Median mortgage balances across the Front Range, including Denver, Aurora, Lakewood, and Colorado Springs, now routinely exceed $350,000.

At the same time, many Colorado homeowners rely on employer-provided group life insurance, which typically pays only one to two times annual salary. For a household with a $400,000 mortgage, that often leaves a gap of $200,000 or more. Group policies also end when you leave your job, meaning coverage can disappear at exactly the wrong time.

Mortgage protection insurance is specifically designed to address this gap. The policy benefit is sized to your actual mortgage balance, so there is no guesswork. If you carry a gap today, a licensed Colorado agent can show you how to close it, often for a monthly premium lower than you might expect.

Coverage Gap Calculator. Frequently Asked Questions

A mortgage coverage gap is the difference between what you owe on your home and the life insurance death benefit your family would receive if you died today. If your mortgage balance is $350,000 and your life insurance pays $150,000, your family faces a $200,000 shortfall. Without enough to pay off the loan, they either keep making payments on a single income or sell the house, often at the worst possible time.
It can, but with important caveats. Employer group life typically pays one to two times your annual salary, which may not fully cover a large mortgage balance. More importantly, group life coverage ends when you leave your job, whether that is voluntary, a layoff, or a health-related departure. Mortgage protection insurance follows you regardless of employment status, providing more reliable protection for your home.
It depends on your age, health, and the size of the gap. A healthy 40-year-old closing a $200,000 gap with a 20-year mortgage protection policy might pay $40 to $75 per month. Rates are locked in when you apply, so starting sooner nearly always saves money. A licensed Colorado agent can provide exact figures from multiple carriers at no cost.
Yes, and many Colorado homeowners do. Term life insurance provides a general death benefit your family can use for any purpose. Mortgage protection insurance specifically pays off the remaining mortgage balance. They complement each other well. If you already have some term life, use this tool to check whether it fully covers your mortgage or if you still have a gap to address.
Use your current remaining balance from your most recent mortgage statement. If you refinanced to a 30-year term, your balance may be higher than expected, which could have widened your coverage gap. Run the calculator with your updated balance to see exactly where you stand today.
The gap calculation itself is straightforward math (mortgage balance minus existing coverage). What the tool cannot account for is your broader financial picture, savings, other assets, Social Security survivor benefits, and how your family would actually manage cash flow. Treat the result as a starting point for a more thorough conversation with a licensed agent.