Glossary

Coinsurance

In regards to property insurance, the policy holder is required to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.  The most commonly issued coinsurance percentage would be 80% but can be as high as 100%. The latter [100%] would impose the greatest penalty for under reporting. For this reason, it is vital that values of property are accurately reported and updated annually to reflect inflation and other increases in cost.