Coinsurance Requirement

Published: | Updated: August 1, 2016

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Definition - What does Coinsurance Requirement mean?

Coinsurance requirement is the amount of money that an insured has to pay the insurer in order to be covered for a partial or total loss. The amount is computed as percentage of the exact worth of the one being covered, which is usually property.

Insuranceopedia explains Coinsurance Requirement

The value of real estate often goes up in the market over time. This is important to note when buying an insurance because an insurance company appraises the worth of a property at the time of a loss (and not during the insurance purchase) and matches it with the coinsurance requirement paid. If the amount paid by the insured is less than the required percentage needed which is derived from the worth of the property during the loss, he or she ends up paying out of his or her pocket for a fraction of the loss which the insurance will not cover.


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