Coinsurance is a penalty imposed if a policyholder under-reports or under-declares the value of his or her property.


Coinsurance will be expressed on a policy as a percentage – usually, 80%, 90% or 100%. If coinsurance on your policy is 80%, the property will need to be insured for at least 80% of its value to avoid a penalty at the time of loss. Keep in mind that while insuring to 80% of property’s value would avoid the coinsurance penalty, it would still result in a 20% underinsurance situation.


To be insured properly, consider insuring your property’s full value. Property must always be accurately reported and updated to reflect inflation and other increases in cost. Avalon can work with you to ensure your assets are properly insured through agreed values, blanketed limits, and other risk management solutions you can consider.