Inflation could cause an insured to suffer coinsurance penalties.

Name: Inflation could cause an insured to suffer coinsurance penalties.
Brand: Quizplus
Rating: 4.7 (51 reviews)

Question

Quizplus · Accepted Answer

Inflation can increase the cost of repairs or replacement for insured property, potentially leading to a situation where the actual value of the property exceeds the insured amount. If the insured amount is less than the minimum percentage required by the coinsurance clause, the policyholder could face a coinsurance penalty during a claim.

Inflation Could Cause an Insured to Suffer Coinsurance Penalties