Respuesta :
Coinsurance clauses in insurance policies require the insured to cover a portion of the loss if the property is not covered for the required percentage of replacement value.
Coinsurance clause: what is it?
Coinsurance is a term used in insurance contracts by insurance providers for building-related property insurance policies. This provision guarantees that policyholders insure their assets for a reasonable amount and that the insurer is paid a reasonable premium for the risk.
The common way to express coinsurance is as a percentage. The majority of coinsurance clauses demand that policyholders insure a property for 80, 90, or 100% of its actual value.
For instance, a $1,000,000 replacement value building with a 90% coinsurance clause must have a minimum of $900,000 in insurance coverage. An 80% coinsurance clause on the same building necessitates insurance coverage of at least $800,000.
Learn more about the coinsurance clause with the help of the given link:
brainly.com/question/23612826
#SPJ13
