Property Coinsurance Clause

The coinsurance clause included in property insurance policies (including Homeowners policies) can result in an unpleasant surprise for a property owner who files a substantial claim. Unlike coinsurance, or copay, in health insurance, in which the insured and insurer each agree to pay a predetermined portion of any claim, coinsurance applied to property insurance is the percentage of value a policyholder is required to insure. It is important that clients understand the coinsurance clause, and proper valuation of the property in the insurance policy. Contact your Account Manager for a discussion of coinsurance and the proper level of coverage for your property.