Coinsurance can mean two related ideas. In health and some personal products, you pay a percentage of each eligible claim after any deductible. In commercial property, a coinsurance clause may require you to insure for a minimum share of full value, or face a reduced payout. Several insurers can also coinsure a large risk, each taking a percentage line.
Key takeaways
- Percent sharing is different from a flat deductible; both can apply on the same claim.
- Undervaluing property to save premium can trigger coinsurance penalties at claim time.
- On large risks, multiple insurers on one slip spread capacity.
- Always check whether your share is per claim, per year, or only above a threshold.