coinsurance clause definition

coinsurance clause

Insurance policy stipulation that a building must be insured for at least a certain percentage (usually 80 percent) of its insurable value (appraised or market value of the property less value of land) in order to collect the full amount of a partial-loss claim on it.

coinsurance clause is in the General, Marine, & Life Insurance and Real Estate & Buildings subjects.

coinsurance clause appears in the definitions of the following terms: eighty percent rule and insured value

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