Coinsurance can refer to two different things:
- First, it may refer to insurance that is provided by more than one insurance company.
- 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.
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