What is Co-Insurance?

If you have property insurance, your policy more than likely includes a co-insurance clause.  What exactly is co-insurance?Well, co-insurance requires the insured to carry insurance limits equal to at least a specified percentage of the actual cash value of the property. Furthermore, if a loss occurs and it is determined that the amount of insurance carried is less than the amount required under the co-insurance clause, a penalty could be incurred by the insured.When preparing to obtain property insurance, or updating your current policy, be sure to ask your agent:•    Should I have an 80%, 90% or 100% co-insurance clause?•    How does co-insurance affect my coverage?•    Why, how and to what degrees does co-insurance affect my property premium?•    What are the benefits of “blanket coverage”?If you have multiple properties, be sure to find out the benefits of blanket coverage. It may help you utilize just one limit for all coverages and locations.Still need help figuring out the ins and outs of co-insurance? At Risk & Insurance Consultants, personal and commercial insurance consultants are at hand to help you understand it better. Just give us a call at 404-459-5975.