In the insurance industry, Co-insurance is a provision that states an insurance company must pay a percentage of the value of your dwelling. The percentage the insurance company generally covers is 80% and the policyholder covers 20%. It is very important to review your insurance policy and ask your insurance company for details of what will be covered and reimbursed in the event of a loss. 

While rising prices in the housing market might be good news if you’re trying to sell your home, it also means that you need to stay up to date with how much insurance coverage your home or business has. If your insurance company is covering less than 80% of the total value of your home or building that means that you will need to pay more money out of pocket to restore your dwelling back to pre-loss condition in the event of significant damage.