Definition of "Coinsurance clause"

Provision in an insurance policy that caps the insurer's liability by stipulating that the owner of the property that has experienced damage must have another policy that covers usually at least 80% of the cash value of the property at the time of damage, in order to collect the full amount insured. This serves as an inducement for an individual to carry full coverage.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Stairs or porch by the front door of the house. ...

initial plaster used on a lathe. ...

The meaning of topography defines the science of mapping a specific region’s physical features. In short, the topography describes an area’s characteristics, such as its ...

“What is Situs?”, you ask.Situs is a word in Latin that basically means the site or location where something exists or originates. Like most words in latin, situs is usually ...

What does Act of God mean? Acts of God or “force majeure” is typically how an insurance policy classifies peril situations that could not be prevented or defended by men. ...

An arm’s-length transaction is a business deal, or transaction where the seller and buyer act independently of each other without influence on the other party. What sets these types ...

Interest rate that exceeds the rate on the old loan but in less than the rate on new loans. It is usually offered by the lender to encourage home buyers to refinance existing, low interest ...

Figure or value which is the starting point in computing gain or loss, depreciation, depletion, and amortization. ...

Cash payment to a lender so as to lower the interest rate on a loan a borrower must incur. The lower rate may apply for all or a part of the loan term. ...

Popular Real Estate Questions