Coinsurance Clause (Property)

Also known as: 80% Coinsurance Rule

A commercial property policy clause requiring the insured to maintain coverage equal to at least a specified percentage (typically 80%) of the property value to receive full payment on partial losses.

“If the limit of insurance does not equal or exceed the coinsurance percentage specified, loss payment is reduced proportionally: (Did / Should) x Loss minus deductible.”

iso-commercial-property · Coinsurance Condition § F

Tested on

Property & Casualty Adjuster

Related terms

Actual Cash Value (ACV)

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