Co-Insurance Calculator

Co-Insurance Calculation

Co-insurance in insurance is a clause found in property insurance policies that require policyholders to insure their property for a specified percentage of its actual cash value or replacement cost, often expressed as 80%, 90%, or 100%. Failing to meet this percentage can result in a co-insurance penalty during a claim.

The purpose of co-insurance is to ensure policyholders maintain adequate coverage, reflecting the true value of their property, and discouraging underinsurance. This concept is common in commercial property insurance but applies to various insurance policies.

Required Insurance is calculated by multiplying the actual replacement cost of all property by the co-insurance clause (again, usually 80%-100%).

Co-Insurance Calculator