What is a co-insurance clause?

A co-insurance clause is a clause used in insurance policies in Mississippi that places a specified percentage of responsibility on the insured for damages in the event of a claim. This percentage is sometimes also referred to as the co-insurance percentage and it is typically between 80% and 100%. The remaining percentage is typically covered by the insurance provider. For example, if an insurance policy specifies a co-insurance percentage of 80%, the insured will be responsible for 80% of the damages and the insurance company will cover the remaining 20%. It is important to note that this payment is usually limited to a certain amount, usually the same amount as the policy limit. Co-insurance clauses are generally found in property insurance policies, such as home or auto policies. They are intended to encourage policyholders to properly insure their property. In other words, a policyholder should ensure that their policy covers at least the estimated full cost of a damaged property or they will be required to pay the difference. In Mississippi, insurance claims law may also stipulate that when an insurance company denies a claim or offers a settlement that pays only a portion of the actual damages, the insured may sue the insurer to have the co-insurance percentage enforced. This means that the insured may recover the percentage of the damages that they are required to pay for under the co-insurance clause.

Related FAQs

How is an insurance claim investigated?
What is a policy exclusion?
What is an independent adjuster?
What is a power of attorney?
What is a contractual liability exclusion?
What are the time limits for filing an insurance claim?
What is a negligence claim?
What is an insurance subrogation?
What is an exclusion in an insurance policy?
What are the benefits of filing an insurance claim?

What is a co-insurance clause?

Related FAQs

Related Blog Posts