Coinsurance

Coinsurance is an arrangement by which the insured; in consideration of a reduced rate; agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. ??An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents; whatever the case may be. If you don’t; the company pays claims only in proportion to the amount of coverage you do carry.

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