Waiver of Coinsurance Clause

A waiver of coinsurance clause is a provision in an insurance policy that allows the policyholder to retain a portion of the loss in the event of a claim. This can be beneficial for policyholders who have a high deductible or who are concerned about the possibility of having to pay a large coinsurance amount.

The waiver of coinsurance clause typically states that the policyholder will be responsible for a percentage of the loss, up to the amount of the deductible. For example, if the policy has a $1,000 deductible and the waiver of coinsurance clause states that the policyholder is responsible for 20% of the loss, then the policyholder would be responsible for up to $200 of the loss.

The waiver of coinsurance clause can be a valuable tool for policyholders, but it is important to understand the terms of the clause before agreeing to it. In particular, policyholders should be aware of the following:

* The percentage of the loss that the policyholder is responsible for.
* The amount of the deductible.
* Any other conditions that may apply to the waiver of coinsurance clause.

If a policyholder has any questions about the waiver of coinsurance clause, they should contact their insurance agent or broker.

In addition to the above, there are a few other things to keep in mind about waiver of coinsurance clauses:

* They are not available on all types of insurance policies.
* They may not be available in all states.
* They may not be available for all policy limits.
* They may not be available for all types of losses.

If a policyholder is interested in a waiver of coinsurance clause, they should speak to their insurance agent or broker to find out if it is available for their policy.