Definition

A type of insurance where the insured person covers part of the risk or cost, usually by agreeing to pay a percentage of the total value of the insured property.

Example

In a coinsurance agreement, the homeowner is responsible for a portion of the repair costs after a loss.

Conversation

I was reading about how coinsurance works in property insurance.

Oh, really? What did you find out?

Well, it means you insure your property for less than its full value, right?

Exactly! And then you have to cover the difference if something happens.

Synonyms & Antonyms

Root Explanation

Coinsurance → It is formed from "co-" (meaning together) and "insurance" (from Old French *ensurance*, meaning a guarantee or protection). The word "coinsurance" refers to a situation where two or more parties share the cost of insurance together.

Memory Tip

Think of sharing protection or guarantee together — 'co-' means together, and 'insurance' refers to the protection provided.

Visually Confused Words