{ "@context": "https://schema.org", "@type": "DefinedTerm", "name": "Co-Insurance", "description": "Co-insurance is a policy clause requiring you to insure a property to a minimum percentage of its value. If you under-insure, the carrier may pay only a proportional share of any claim.", "inDefinedTermSet": { "@type": "DefinedTermSet", "name": "Insurance Terms Glossary", "url": "https://olivecover.com/insurance-terms" } }
Olive Cover
AboutFree Coverage Review
Commercial

Co-Insurance

Co-insurance is a policy clause requiring you to insure a property to a minimum percentage of its value. If you under-insure, the carrier may pay only a proportional share of any claim.

A clause that requires you to insure a property to a certain percentage of its value. Under-insure and the carrier may pay only a proportional share. Example: a commercial building worth $1 million with an 80 percent co-insurance clause must be insured to $800,000. If insured at $500,000 and you suffer a $200,000 loss, the carrier pays only $125,000 (the 500/800 ratio of $200,000).