Frequently Asked Questions

Questions

What are the office hours?
What is the difference between 80% Co-Insurance and 100% Co-Insurance?

Answers

What are the office hours?


Our office is open Monday thru Friday from 9am -5pm and we are closed daily from 12-1 for lunch.

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What is the difference between 80% Co-Insurance and 100% Co-Insurance?


Co-Insurance means a sharing of an insurance risk. A policy that has an 80% co-insurance clause means that the carrier will share 80% of the loss while the insured will absorb the remaining 20%. When there is a claim the insurance carrier will pay according to the following value (amount of insurance carried/ amount of insurance required) X amount of loss = the insurance company payment. For example:

The value of your building is $100,000;  
The co-insurance value is 80%
The amount of damage to the building is $30,000
The Amount of Insurance Carried is $60,000
The insurance company would be required to pay $22,500 minus your deductible.

60,000                  X     $30,000 = $22,500
(100,000 X 80%)

 At 100% co Insurance the claim payment would be even less. The insurance company would be required to pay $18,000 minus your deductible.

60,000                   X    $30,000 = $18,000
(100,000 X 100%)

The best thing to do to avoid co-insurance penalties is to insure your building at the replacement cost value.



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