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A Co-Insurance clause is a term in an insurance policy which ensures that you (the policy holder) insure your property for the true replacement cost of the property or at least to minimum level. Most Co- Insurance clauses require an owner to insure a property to 80%, 90% or 100% of the property’s actual value.
Insurance Claims

Co-Insurance Explanation

Co – Insurance clause is a policy wording to insure you as the policy holder insure to the true replacement cost of the property or at a least to minimum level in order not to be a co pay in a partial loss.

Co-Insurance explanation

A Co-Insurance clause is a term in an insurance policy which ensures that you (the policy holder) insure your property for the true replacement cost of the property or at least to minimum level. Most Co- Insurance clauses require an owner to insure a property to 80%, 90% or 100% of the property’s actual value.

CO-Insurance clauses transfer a portion of the risk to the property owner. If a property is insured for less than the amount required by the Co-Insurance clause then the owner is essentially agreeing to retain part of the risk and become a “co-insurer”.

To ensure compliance with a Co-Insurance clause the best option is to have an appraisal done for the replacement value of the property or at the very least, ask your broker to do a replacement cost evaluation.

The importance of understanding Co-Insurance

Understanding co-insurance clauses allows policyholders to make informed decisions, mitigate risks, prevent underinsurance, and ensure appropriate coverage. Regular communication with insurance brokers is vital to maintaining adequate coverage and avoiding negative financial implications when a loss occurs.

The benefits of a professional appraisal

Obtaining a professional appraisal for property insurance offers many benefits, including an accurate valuation for a property, compliance with Co-Insurance requirements, risk mitigation, and improved negotiation with insurers. This proactive approach enhances the overall financial security provided by a policy of insurance and ensures that policyholders receive optimal coverage for unforeseen events.

Meet the Authors

If you’ve had your insurance claim denied or restricted, don’t hesitate to reach out to Partner Anastase Maragos. With our expertise and commitment to justice, we are here to explore your legal options and help you navigate the complex world of insurance claims. Your financial security and peace of mind are our top priorities so you can move forward with confidence. 

Cameron Lineker, is the president at Blue Lion Claim Resolutions Ltd. If you’ve encountered challenges with restricted insurance coverage or a denial of your Property and Casualty (P&C) insurance claims, Cameron Lineker and his team at Blue Lion Claim Resolutions are here to assist you. Operating on a contingency basis in collaboration with the expertise of  legal counsel, we strive to ensure that you receive the insurance coverage you deserve. Don’t hesitate to reach out and take the first step toward securing the resolution you need.