Answer:Coinsurance is the amount, generally expressed as a fixed percentage, an insured must pay toward a covered claim after the deductible is satisfied. It is common in health insurance. Some property insurance policies also contain coinsurance provisions. In this case, coinsurance is the amount of coverage that the property owner must purchase for a structure.
KEY TAKEAWAYS
Coinsurance is common in health insurance and some property insurance policies.
In health insurance, coinsurance is the percentage under an insurance plan that the insured person pays toward a covered expense or service, after the policy deductible is satisfied.
One of the most common coinsurance breakdowns is the 80/20 split: The insurer pays 80%, the insured 20%.
A coinsurance provision is similar to a copayment provision, except copays require the insured to pay a set dollar amount at the time of the service, and coinsurance is a percentage amount of the overall cost.
The coinsurance clause in a property insurance policy requires that a home is insured for a percentage of its total cash or replacement value.
Step-by-step explanation: