What is Co-Insurance?

What is co-insurance for property coverage - whether it is for homeowners or commercial lines property? Co-insurance for property coverages is not even relatable to co-insurance for healthcare policies. In property insurance, co-insurance means that you have to have your property covered at a specific percentage of the current value or you will have a penalty in the event of a loss.

Explanation of property co-insurance.

Some people will look at the rising cost of insurance premiums and feel that they would rather save some money by underinsuring their property. Their purpose isn't to be dishonest, it is born out of a belief that they won't have a claim and it won't matter. Insurance is designed to protect you in the event of a claim, and that event is unexpected. So you may save some money today by under-insuring, but if you have a claim, you could face a penalty far greater than what you saved.