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

Sometimes, however, policies might consist of a waiver of coinsurance in case of a total loss. Coinsurance is the amount an…