Coinsurance can refer to two different things:

  1. First, it may refer to insurance that is provided by more than one insurance company.
  2. Second and more commonly, it refers to coverage rules set by your insurer. For example, your Property Insurance policy might have a coinsurance clause that requires you to carry coverage for a certain percent of your property's value. That way, your insurer can be sure you have adequate coverage in the event that you need to make a claim.