What is Coinsurance?
Quick answer
Coinsurance is the percentage of a covered cost you pay after meeting your deductible, with the insurer paying the rest.
Coinsurance is the percentage of a covered cost you pay after meeting your deductible, with the insurer paying the rest. An 80/20 plan means the insurer pays 80% and you pay 20%.
Examples
- On a $10,000 hospital bill with 20% coinsurance (post-deductible), you owe $2,000.
- Some property policies have coinsurance clauses that penalize underinsurance.
- Coinsurance usually stops once you hit your out-of-pocket maximum.
Why this matters
ReadMyPolicy flags coinsurance clauses in property policies that can slash a claim payout if your dwelling isn't insured to at least 80% of replacement cost.
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Frequently asked questions
What is Coinsurance?
Coinsurance is the percentage of a covered cost you pay after meeting your deductible, with the insurer paying the rest. An 80/20 plan means the insurer pays 80% and you pay 20%.
When does Coinsurance matter?
ReadMyPolicy flags coinsurance clauses in property policies that can slash a claim payout if your dwelling isn't insured to at least 80% of replacement cost.
What's an example of Coinsurance?
On a $10,000 hospital bill with 20% coinsurance (post-deductible), you owe $2,000. Some property policies have coinsurance clauses that penalize underinsurance. Coinsurance usually stops once you hit your out-of-pocket maximum.
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