Policy
What Is Coinsurance?
Coinsurance is a clause, common on commercial property, that requires you to insure your property to a set percentage of its value (often 80 to 100%). If you are underinsured below that level, your claim payment is reduced by a penalty, even on a partial loss.
For example, with an 80% coinsurance clause on a $1,000,000 building you must carry at least $800,000 of coverage. Carry only $600,000 and a partial-loss payout is cut proportionally. Review your building values with your broker to avoid a coinsurance penalty.
Questions about Coinsurance?
Our Ontario brokers can explain how it applies to your policy.
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Reviewed by Roughley Insurance Brokers Ltd., licensed Ontario insurance brokers since 1945. Last updated October 10, 2026. ← Back to the glossary