Coinsurance

On property: a clause requiring you to insure to a set % of value (often 80–100%) or share the pain at claim time. On health: your slice of the bill after the deductible.

Coinsurance means different things in property and health insurance, and it trips people up.

In property insurance, a coinsurance clause requires you to insure your building to a set percentage of its value — often 80% to 100%. If you under-insure below that, you get penalized at claim time and share part of even a small loss. In health insurance, coinsurance is simply your percentage share of a covered bill after you’ve met your deductible — like paying 20% while the plan pays 80%.

The property version is the sneaky one: skimping on your limit to save premium can quietly cost you thousands on a partial claim, so it pays to insure to value.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.