what is a clause on insurance
The co-insurance clause on property insurance policies (buildings, contents, stock and equipment) has been in existence since about the turn of the twentieth century. It is a concept, however, that is. still highly misunderstood by many insurance buyers. The provision is included as a way to assure that the insurance carrier receives the proper premium for the risk it is assuming. The co-insurance clause states that the insured must carry an insurance limit on its property in an amount greater than or equal to a certain percentage of its total value, usually 80, 90 or 100 percent.