Adjusting Today Issue #3040: Coinsurance/Insurance to Value Revisited: An Essential Concept in Property Insurance

Property Insurance Roundtable

We assembled four industry panelists to answer these very important insurance coverage questions. This information is intended to assist policyholders by clearing up common misnomers, gauge proper coverages and finding the right broker. Remember, it’s important to read the contract language thoroughly and understand which policies cover which assets to make sure you are reimbursed properly in the event of a loss. For further information on this topic, please read our corresponding Adjusting Today article: "Coinsurance/Insurance to Value Revisited: An Essential Concept in Property Insurance."

Key Takeaways:

[:35] Introducing the panelists

[1:08] What is coinsurance?

[4:46] Why would coinsurance be included in a policy?

[9:04] What challenges do policyholders face when filing an insurance claim on policies including coinsurance?

[17:00] What role does the deductible play in calculating coinsurance penalties?

[20:56] What can policyholders do to ensure their policy coverage is adequate?

[37:54] What options do policyholders have if they have a coinsurance challenge?

[42:41] Calculations of depreciation

[44:30] Are brokers doing an adequate job of explaining coinsurance, deductibles and replacement costs to insureds?

Panelists:

Craig Becker, SPPA, Senior Executive Adjuster and Vice President of Claims - Globe Midwest/Adjusters International

Scott Eich, Executive General Adjuster - AI/CO

James R. Mahurin, CPCU, ARM - Risk Management Consultant and Member of the Society of Risk Management Consultants

C. Todd Thomas, Executive Director of Consulting Services and Member of the Society of Risk Management Consultants - Adjusters International