Online Coinsurance CalculatorDetermine if your property is insured to value
What is Coinsurance?
Coinsurance is mathematical calculation used by insurance companies during a claim to determine if the business property is insured to a specific value. Insurance policies will express coinsurance as a percentage such as 80%, 90%, or 100%.
For example, a cannabis licensee may insure their grow equipment for $500,000 with a 80% coinsurance factor. A retail marijuana store might insure the building for $350,000 and cannabis stock for $100,000 with a 90% coinsurance percentage.
Why Should I Care About Coinsurance?
Unaware or incorrectly advised business personal property values might cost you more money after a claim. The consequence of not being insured to the actual value of the property can result in a reduced claim settlement.
How is Coinsurance Calculated?
The value of the business personal property is multiplied by the coinsurance percentage to equal a minimum insurable value. The insurable value is divided by the amount of business personal property insurance coverage on the policy to equal a ratio. The ratio is multiplied by the amount of your claim or loss and decreased by the amount of your deductible.