My agent said I need to be concerned about coinsurance. What is coinsurance?
Total Comments: 25
Posted: Mon Nov 01, 2010 05:01 pm Post Subject:
I believe that some posters may have co-insurance confused with re-insurance.
Posted: Wed Nov 03, 2010 01:41 am Post Subject:
No, they are simply confused about insurance.
Posted: Thu Sep 22, 2011 06:58 am Post Subject:
Coinsurance is defined as a clause in insurance policy which determines the amount which will be paid by insurer and insured person. It is percentage based factor which will be applicable at the time of claim for an accident. It can be explained clearly by following example:
If you have a coinsurance of 70/30 ratio it means 70 percent of the total damage will be paid by insurance company and remaining 30 percent will be applicable to you.
Posted: Thu Sep 22, 2011 09:59 am Post Subject:
The coinsurance stevenricherd describes applies to health insurance. While the explanation is essentially correct as far as health insurance is concerned (although in health insurance, it does not apply to accidents only, but to all claims), it is not at all the kind of coinsurance that the OP inquires about.
The OP asks about coinsurance in a business policy, meaning the penalty applied to one's property coverage if the amount of protection carried is incorrect. If the property is valued at $100,000, the coinsurance provision requires that it be insured for a minimum of $80,000 -- 80% of the value -- in order to receive 100% coverage in the event of a loss. If the property was only insured for $70,000, the coinsurance penalty would limit the loss payable to 70%.
If the property suffers a $50,000 loss, the insured would receive only $35,000 (35,000 x 0.70) from the insurance company. If the property had been insured for $80,000 or more, the insured would receive the full $50,000. This rule also applies to homeowner's insurance.
Posted: Tue Feb 21, 2012 11:14 am Post Subject:
Hi,
Thanks for the information, co insurance benefits are very much useful.
Posted: Tue Feb 21, 2012 10:51 pm Post Subject:
co insurance benefits are very much useful.
You have no idea what you are talking about.
Posted: Wed Jun 06, 2012 05:33 am Post Subject:
Co-insurance is an insurance-related term that describes a splitting or spreading of risk among multiple parties.
Not only are you late to the game... you are incorrect (in almost every context).
Posted: Wed Jun 06, 2012 12:59 pm Post Subject:
In health insurance, coinsurance is the percentage of sharing claims expenses between the insurance company and the insured. In property-casualty insurance, coinsurance is a requirement to fully insure (or to at least 80%) the subject property against total loss. In the event a property is underinsured, the coinsurance penalty limits recovery in the proportion of coverage purchased to the amount of insurance actually required.
johnvictor has no clue about what he writes.
Posted: Wed Jun 06, 2012 01:06 pm Post Subject:
He just needed something to spam his sig line. But who would buy something from a spammer who knows nothing about insurance. If you would... let me show you this bridge I have for sale.
Posted: Wed Jun 06, 2012 01:37 pm Post Subject:
Is the one you're selling in New York? I have one for sale there too.
Posted: Mon Nov 01, 2010 05:01 pm Post Subject:
I believe that some posters may have co-insurance confused with re-insurance.
Posted: Wed Nov 03, 2010 01:41 am Post Subject:
No, they are simply confused about insurance.
Posted: Thu Sep 22, 2011 06:58 am Post Subject:
Coinsurance is defined as a clause in insurance policy which determines the amount which will be paid by insurer and insured person. It is percentage based factor which will be applicable at the time of claim for an accident. It can be explained clearly by following example:
If you have a coinsurance of 70/30 ratio it means 70 percent of the total damage will be paid by insurance company and remaining 30 percent will be applicable to you.
Posted: Thu Sep 22, 2011 09:59 am Post Subject:
The coinsurance stevenricherd describes applies to health insurance. While the explanation is essentially correct as far as health insurance is concerned (although in health insurance, it does not apply to accidents only, but to all claims), it is not at all the kind of coinsurance that the OP inquires about.
The OP asks about coinsurance in a business policy, meaning the penalty applied to one's property coverage if the amount of protection carried is incorrect. If the property is valued at $100,000, the coinsurance provision requires that it be insured for a minimum of $80,000 -- 80% of the value -- in order to receive 100% coverage in the event of a loss. If the property was only insured for $70,000, the coinsurance penalty would limit the loss payable to 70%.
If the property suffers a $50,000 loss, the insured would receive only $35,000 (35,000 x 0.70) from the insurance company. If the property had been insured for $80,000 or more, the insured would receive the full $50,000. This rule also applies to homeowner's insurance.
Posted: Tue Feb 21, 2012 11:14 am Post Subject:
Hi,
Thanks for the information, co insurance benefits are very much useful.
Posted: Tue Feb 21, 2012 10:51 pm Post Subject:
co insurance benefits are very much useful.
You have no idea what you are talking about.
Posted: Wed Jun 06, 2012 05:33 am Post Subject:
Co-insurance is an insurance-related term that describes a splitting or spreading of risk among multiple parties.
Not only are you late to the game... you are incorrect (in almost every context).
Posted: Wed Jun 06, 2012 12:59 pm Post Subject:
In health insurance, coinsurance is the percentage of sharing claims expenses between the insurance company and the insured. In property-casualty insurance, coinsurance is a requirement to fully insure (or to at least 80%) the subject property against total loss. In the event a property is underinsured, the coinsurance penalty limits recovery in the proportion of coverage purchased to the amount of insurance actually required.
johnvictor has no clue about what he writes.
Posted: Wed Jun 06, 2012 01:06 pm Post Subject:
He just needed something to spam his sig line. But who would buy something from a spammer who knows nothing about insurance. If you would... let me show you this bridge I have for sale.
Posted: Wed Jun 06, 2012 01:37 pm Post Subject:
Is the one you're selling in New York? I have one for sale there too.
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