What does coinsurance mean?
noun
A provision in an insurance policy that requires the policyholder to pay a portion of the loss, usually in addition to the insurance company's payment. This is often expressed as a percentage of the total loss.
Example
"The policyholder's coinsurance clause required them to pay 20% of the repair costs, while the insurance company covered the remaining 80%."
Definition generated by AI and curated by RJS Tech Solutions LLP.