Abrir

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Headquarters (787) 749-4600

Claims Call Center (787) 781-7100


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Our main office location:

Physical address:

1441 F.D. Roosevelt Ave.
San Juan, P.R. 00936

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Postal Address:

P.O. Box 363628
San Juan, P.R. 00936-3628

How can I avoid being penalized for a coinsurance clause in a residential property insurance policy?

There are several options to insure a residence when acquiring property insurance: you may insure 80%, 90%, or 100% of its real value or of the property replacement cost. Example: If the policyholder has a $ 100,000 property and selects the 80% coinsurance clause, it shall be insured for $80,000. If you buy insurance for $40,000 instead of $80,000, then, in case of a partial loss, you would recover half, minus the deductible. Let’s say the damages sum up $ 20,000; then, by applying the formula to determine the recovery, the amount the company would pay would be $10,000; i.e. 50% of the loss amount, minus any applicable deductibles. This is why it is important to have the sum insured in the policy be an amount that at least equals the acquired coinsurance percentage.
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