The Dangers of Coinsurance

https://robfreeman.com/what-coinsurance-property-insurance/ - Coinsurance is an "insure to value" strategy employed by property insurance companies.

A coinsurance clause will require you to insure your property to a minimum value percentage (such as 80%, 90% or 100%) of actual value or you could suffer a penalty in the event of filing a property insurance claim. Coinsurance (aka "co-insurance") may also be prohibited by commercial lenders in mortgage covenants.

Coinsurance clauses are found in many types of insurance policies, not just commercial property. These clauses may also be found in dwelling forms, homeowner's, health insurance, federal flood policies and even D&O.

Below the video is a link to an example of how coinsurance works and a coinsurance calculator.

You can use the coinsurance calculator to determine whether your property insurance policy meets the requirement in your coinsurance clause - and what your penalty might be in the event of a claim if you do not meet the requirement.

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#coinsurance #co-insurance #property_insurance #coinsurance_calculator

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