• A property insurance provision that penalizes the insured’s loss recovery if the limit of insurance purchased by the insured is not equal to or greater than a specified percentage (commonly 80 percent) of the value of the insured property. The amount of the loss that is not payable to the insured as a result of failure to comply with the coinsurance provision is commonly referred to as a coinsurance penalty. In commercial property insurance policies, coinsurance can sometimes be avoided with an agreed value provision.
  • In health insurance and some casualty lines, the percentage share of losses that an insured retains, in the form of a deductible.


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