Property Insurance What does the 90 percent coinsurance mean on the property insurance?

A 90% coinsurance clause means you must insure your property for at least 90% of its total replacement cost. If you insure it for less and then make a claim, the insurer may reduce your payout because you didn’t carry enough coverage.

In short:

• Insure for ≥ 90% of replacement cost = full payout (minus deductible).

• Insure for < 90% = reduced payout based on how underinsured you are.

It’s designed to make sure property owners maintain adequate insurance coverage.