Vic Alemania of Mennonite Aid Plan explains how coinsurance affects the settlement amount on a loss. Vic also notes that coinsurance for property policies is completely different from coinsurance in health insurance policies.
To obtain the full policy benefits, your policy coverage limits must be at least the percentage (typically 80%, 90% or 100%) of the full replacement cost required by the coinsurance clause of your policy. The example in the video below is the easiest way to understand coinsurance.
