What is the coinsurance clause in my business insurance policy?
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Written on: 06.02.2010 [04:54]
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Gump
Gump
Topic creator
Posts: 3
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I am reading through my insurance and I have no idea what the coinsurance clause is about. It says something about 90% coinsurance, what does that mean? Will I have to pay something on top of my excess with this type of insurance? How does it work? |
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Written on: 12.02.2010 [12:11]
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Colette
Colette
Posts: 1
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No, coinsurance isn’t something that makes you pay unless you have understated the value of your insurance cover. For example, this clause from your policy is to do with how much coverage you have taken out and whether it is enough to cover your property, ie if you had taken out coverage for £300,000 but in the end it turns out that your property was worth £500,000 then the insurance company would be at a loss as they didn’t get enough money from you in premiums to cover the pay out. In this instance you would end up liable to pay something to even out the payment. |
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