1 Coinsurance is a provision of your insurance policy that requires you to keep a minimum amount of insurance Typically between 70-90% of the value of the property. For example if your property was worth 100k you would need to keep 70K worth of insurance on the property.
2 As your property rises in value you should adjuster your coverage amounts otherwise your insurance may invoke this provision and cut your benefits.
3 In many states your agent is supposed to be your fiduciary if he says you have enough insurance get that in writing. This will help us later if we need to get the coinsurance provision thrown out.
4 If you do not carry enough insurance say 50% of the value of the property value. Then you will only be paid 50% of your loss so in our previous example say your loss is 50k you will only receive 25K for your loss because you had a 50% penalty.
5 If your insurance company does invoke the coinsurance provision. There are other factors that may be at play a public adjuster can sift through the weeds and help minimize your damages.
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