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Coinsurance & Claims Toolbox

Comprehensive calculation toolkit for insurance claims professionals, facilitating efficient evaluation of coinsurance and asset depreciation.

Coinsurance Assessment

Co-insurance
%

Usually 80%, 90% or 100%

$
$
$
$

Analysis Results

Required Insurance (R): $0.00
Compliance Ratio (C/R): 0.00%
Status: Not Met
Coinsurance Penalty: $0.00

Final Amount Payable (A)

$0.00

A = ([C / R] × L) - D

Understanding Coinsurance

Coinsurance clauses require policyholders to maintain insurance coverage of at least a specified percentage of the property's actual cash value—typically 80%, 90%, or 100%.

This ensures adequate coverage for potential losses. Failure to meet this requirement may result in a "Coinsurance Penalty" where the policyholder shares the loss.

Key Terms

  • A (Amount Payable): Final claim payment amount.
  • C (Carried): Amount of insurance actually purchased (Did).
  • R (Required): Amount of insurance required (Should) = Value × %.
  • Penalty: Reduction in payment due to underinsurance. Ratio C/R is capped at 1.