Coinsurance on Property Coverage

Coinsurance is used in property insurance policies so both the insurance company and a business owner share the cost of a claim. 

Coinsurance ensures policyholders insure their property to an appropriate value and that the insurer receives a fair premium for the risk. It requires the insured to insure the property to a specified percentage of its full value, typically 80%, 90%, or 100%. 

If the limits purchased are less than what is required by the coinsurance clause, the loss recovery will be limited to that same percentage of loss.

Use our interactive calculator to see how coinsurance works in real time.