What Is That Co-Insurance Clause On My Policy?
Co-Insurance is a clause imposed on most commercial property insurance policies that requires you to insure your property up to a certain limit of insurance (usually 80%-90%, sometimes 100%). This means that if you you fail to insure your property to full value, you have become a "Co-Insurer" on your property & in the event of a claim you could be looking at a penalty.
Now we understand that if we under-insure our property, in the event of a total loss, we are short the difference. Take that same concept & apply it to a smaller loss:
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