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Coinsurance is basically how insurance companies make sure that you are insuring your property to close to what it costs to rebuild and replace it. <\/p>
It is called coinsurance because it describes what happens if your property is not insured to its correct value. <\/p>
You will become responsible for the portion of the claim, which means that you become a co-insurer. <\/p>
All property policies have co-insurance whether it is built into the coverage like homeowner\u2019s insurance are specifically described on a commercial property insurance policy.<\/p>\n
The coinsurance is described by a percentage of the value to rebuild the building or replace your contents. <\/p>
Usually, eight or ninety percent or some have a hundred. If you have eighty percent coinsurance then you have to ensure at least eighty percent of the building or the value of the contents.<\/p>\n
If you don\u2019t insure your property to the correct coinsurance percentage then the company will deduct from the claim the same percentage that you were underinsured.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t