Waiver of Coinsurance Clause

Published: | Updated: August 1, 2016

Definition - What does Waiver of Coinsurance Clause mean?

A waiver of coinsurance clause in an insurance contract relieves the policyholder of the obligation to pay for coinsurance in the event of a total loss. Often in property insurance contracts, a policyholder will only receive 80-90% coverage from a property insurance company, and they will be responsible for the rest through coinsurance. However, a waiver of coinsurance clause waives this responsibility.


Insuranceopedia explains Waiver of Coinsurance Clause

The policyholder will often have to pay a higher premium to get a waiver of coinsurance clause on a property insurance policy. This is because it puts more responsibility on the insurance company. Properties are often worth a significant amount of money. For example, a house or building could be worth hundreds of thousands or even millions of dollars. Because properties can have such a high value, a waiver of coinsurance clauses can actually be extremely important and relevant for payouts in the event of a total loss.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: