If you currently have a policy for property insurance, it will generally include a co-insurance clause. But what exactly is co-insurance, you might ask? Here is the answer from Risk & Insurance Consultants.

Being co-insured requires those insured to bear insurance limits equal to, at minimum, a designated percentage of actual cash value of the property. This being so, if a loss occurs and it is determined that the insurance carried does not meet the requirements, therefore is less than the amount required under the co-insurance clause, and penalty could be incurred by the insured.

In process of preparing to obtain property insurance, or updating your current policy, make sure to ask your agent the following questions:

•    Should I have an 80%, 90%, or 100% co-insurance clause?
•    How does co-insurance affect my coverage?
•    Why, how and to what degree does co-insurance affect my property premium?
•    What are the benefits of “blanket coverage”?

Are you an owner of multiple properties? Make sure to find out the benefits of blanket coverage- it has the potential to help you utilize a single limit for all coverages and locations.

Need a little more help deciphering co-insurance and all that it entails? Contact Risk & Insurance Consultants, where personal and commercial insurance consultants are waiting to help you understand it better. Give them a call at 404-459-5975 or visit www.riskandinsuranceconsultants.com.