Bank Insurance Mistake – Coinsurance Penalties in Your Property Insurance Policies

Work with your insurance agent to eliminate any coinsurance clauses from your property insurance.

Coinsurance is a penalty inside many policies that can hurt you at the time of a loss. It’s a penalty assessed when your insurance company thinks you are underinsured. Ask your agent if you have coinsurance in any of your property insurance policies. If the answer is yes, ask why.

I have long held that having coinsurance penalties in an insurance policy is a good indication that your agent is not looking out for your best interests. Push hard to have the coinsurance penalties removed from your insurance coverage (and take a hard look at the quality of your insurance agent).