Coinsurance on Property Coverage

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

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.

To say that another way, you must maintain a level of insurance for what you actually have. If at time of loss the value of what you have exceeds the coinsurance percents (let's say 90%), then the insurance carriers will only pay a proportion of that loss.

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