Coinsurance

Coinsurance is a provision requiring the insured to carry a required percentage of insurance to value or share a percentage of covered expenses.

Coinsurance is an important insurance concept because it can affect how coverage is selected, priced, interpreted, or applied at claim time. In practical terms, it helps explain what the policy may do, what the insured may be responsible for, or how the insurance company may evaluate a covered situation. This term is commonly associated with Commercial Property, Health Insurance, Homeowners. For benefits insurance customers, understanding Coinsurance can make it easier to compare policies, ask better questions, avoid coverage gaps, and understand what may happen before, during, or after a claim. The exact impact of Coinsurance depends on the policy form, endorsements, limits, deductibles, exclusions, state law, and the facts of the loss or account.

Example: Example: A customer reviewing commercial property coverage asks how Coinsurance affects eligibility, benefits, premium, or claim payment. The agent explains the term using the plan or policy documents so the customer understands the practical impact.