Policy Terms
Coinsurance
Definition
A provision in a property insurance policy requiring the policyholder to insure their property to a specified percentage of its value (typically 80%). Failure to meet this requirement results in a penalty at the time of a claim.
In Zach’s Words
“Coinsurance is the insurance company's way of saying 'don't lowball us.' If your building is worth $1 million and you only insure it for $500K to save on premiums, they'll penalize you when you file a claim. It's like a deal — insure to at least 80% of value, and we'll pay claims in full. Cheap out, and you'll feel it.”
— Zach Nadler, CIO