# Coinsurance

Coinsurance is the insured’s percentage share of responsibility for the expense of a loss. Coinsurance percentage amounts are calculated using the amount of a loss, while the deductible percentage amounts are based on the total amount insured. Coinsurance only applies to Catastrophic coverage.

Coinsurance varies from 10% to 20%, depending on geographical location of your home. The amount will be listed on your quote form.

## For example:

Let’s say your home is insured for \$250,000, with 10% coinsurance, and a 2% deductible.

If the loss = \$100,000

1. First, the Deductible is calculated using the insured amount.
Insured amount, multiplied by the deductible percentage, equals the deductible amount:
\$250,000 x 2% = \$5,000

2. Next, the Deductible amount to be paid by the insured is subtracted from the loss amount.
Loss amount, minus deductible amount, equals remaining loss amount:
\$100,000 - \$5,000 = \$95,000

3. Finally, the coinsurance is calculated using the remaining loss amount.
Remaining loss amount, multiplied by coinsurance percentage, equals coinsurance amount:
\$95,000 x 10% = \$9,500

The insured’s out of pocket expense would be the deductible amount plus the coinsurance amount.
\$5000 + \$9,500 = \$14,500.