Coinsurance
A property penalty if you insure a building or contents for less than the required percentage of value.
What it means
If the policy requires 80% or 90% coinsurance and the limit is too low at the time of loss, the payment is reduced. Agreed value, when present, suspends that penalty.
Why it shows up
Card shops, gyms, and anyone with inventory or tenant improvements get surprised by coinsurance after a fire or theft.
What to look for
- Coinsurance percentage on the property dec
- Agreed value
- Replacement cost versus ACV
Coverbird reads the declarations and form schedule on the PDF you already have. It does not sell insurance or say whether a limit is enough.
Upload a policy to find this on yoursForms that implement this
Related terms
- Replacement cost
Valuation that pays to replace property with new property of like kind, without deducting depreciation.
- Business income
Coverage for lost net income and continuing expenses when a covered property loss shuts you down.