Co-insurance is a term often mentioned in the world of insurance , but many people find it confusing. Whether you’re purchasing health insurance , property insurance , or any other type of policy, understanding co-insurance can help you make informed decisions and manage your financial risks more effectively.

At Riseson Insurance , serving Tempe , Phoenix , Scottsdale , Tucson , Gilbert , and Chandler , we want to simplify insurance for our clients. Here’s a closer look at co-insurance, how it works, and how we can help.

Co-insurance is the percentage of costs that you, the insured, are required to pay after your deductible has been met. Unlike a deductible, which is a fixed amount, co-insurance is a percentage of the covered costs.

For example, if you have a health insurance policy with 80/20 co-insurance, your insurance provider will cover 80% of the costs, while you’ll pay 20%.

In property insurance, co-insurance works slightly differently. Policies often require the insured to carry a certain percentage of the property's value (usually 80% or more) in coverage. If you fail to meet this requirement, you may face penalties when filing a claim.

For instance, if your home is valued at $200,000, and your policy has an 80% co-insurance clause, you should have at least $160,000 in coverage. Falling short of this amount could lead to reduced claim payouts.

Understanding co-insurance is essential because it affects:

Out-of-Pocket Costs: A higher co-insurance percentage for the insured can mean higher expenses after a claim. Coverage Adequacy: Ensuring compliance with co-insurance requirements prevents penalties during claims. Premium Costs: Policies with lower co-insurance percentages for the insured often come with higher premiums but reduce out-of-pocket risks.

Don’t let co-insurance clauses catch you off guard. Protect your assets and your peace of mind by working with a trusted local agent. Reach out to Riseson Insurance in Tempe to get a quote tailored to your needs. Call us today at 602-460-5470 or visit Riseson Insurance.

What Is Co-Insurance?

Co-Insurance in Property Insurance

Why Co-Insurance Matters

Ready to Get Covered?

1. Out-of-Pocket Costs: A higher co-insurance percentage for the insured can mean higher expenses after a claim.
2. Coverage Adequacy: Ensuring compliance with co-insurance requirements prevents penalties during claims.
3. Premium Costs: Policies with lower co-insurance percentages for the insured often come with higher premiums but reduce out-of-pocket risks.