Discover Co-Insurance (Also See Agreed Amount)
Co-Insurance (Also See Agreed Amount) Technical Terms
Co-Insurance (Also See Agreed Amount) : This is a mechanism used to involve the insured as a co-payer in the event that the limit of insurance on a particular property is not equal to full replacement cost or some defined percentage of replacement cost. It is designed to avoid underinsuring a property and to penalize an insured should a property be underinsured by paying on a proportionate share of a loss. Such an endorsement should be avoided in community association insurance.