What does Coinsurance Formula mean? Read on to discover the definition & meaning of the term Coinsurance Formula - to help you better understand the language used in insurance policies.
The coinsurance formula is the formula that is used to determine how much money a homeowner will receive from an insurance company in the event of a loss. Typically, if the homeowner has insurance coverage for at least 80% of the replacement value of the home, then he or she can receive full coverage in the event of a total loss. However, if the homeowner has less than 80% coverage, then the coinsurance formula will determine how much money he or she will receive from the insurance company.
We hope the you have a better understanding of the meaning of Coinsurance Formula.