As an example, if a property has a worth of $200,000 and the insurance coverage supplier requires an 80% coinsurance, the owner must have $160,000 of residential or commercial property insurance coverage. Owners may include a waiver of coinsurance provision in policies. A waiver of coinsurance clause relinquishes the property owner's requirement to pay coinsurance.

Sometimes, nevertheless, policies may consist of a waiver of coinsurance in case of a total loss. Coinsurance is the…