Glossary

Coinsurance

insurance-to-value requirement in some policies

Why coinsurance matters

Coinsurance can change how a quote, declaration page, or claim payment should be read. In practical terms, it is about insurance-to-value requirement in some policies.

Questions to ask

  • Is the amount flat, percentage-based, or tied to a specific peril?
  • Where does it appear on the declarations page?
  • Does changing it affect only price or also claim outcome?
  • Can the carrier change it at renewal?