Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
80% of the amount to totally rebuild your house or condo unit = the minimumamount of your policy’s Coverage A limit.
Co-insurance penalty: Your claim would be reduced based on the percentage by which the structure was underinsured.
Electric Insurance Company® Risk Coaches are licensed insurance professionals who help you navigate the often perplexing world of insurance. Contact your local Risk Coach
or call us at 855.227.8211, Monday through Friday, from 7:00 a.m. to 9:30 p.m. ET.
© 2017 Electric Insurance Company
Ask a Risk Coach
102-1701-RC (05/17)
What You Don’t Know Can Hurt YouThe Homeowner Policy Co-insurance Clause
Co-insurance Requirement Formula$210,000 ÷ $280,000 = .75 | .75 x $350,000 = $262,500
Example with $350,000 Value Home$350,000
80%$280,000$210,000
Home’s replacement value
Co-insurance requirement amount
Required Coverage A amount
Policy’s actual Coverage A amount
Result: $87,500 in losses not covered by the policy. The homeowner will have to pay this amount, plus the policy deductible, out of pocket.
A fire destroys the home and it must be rebuilt.
$350,000Claim
$70,000 $210,000
Home u
nderinsured by Coverage A amount
the minimum required Coverage A amount
$210,000 is 25% less than $280,000,
$87,500Not covered
$262,500Covered
50% are underinsured by 18% or mor
e
of
underinsured homes
60%of homeowners are underin
sure
d