Which of the following is true of the coinsurance feature of property insurance?

Question

Quizplus · Accepted Answer

A coinsurance clause provides that in order for the insured to be able to recover the full cost of partial losses,the insured must obtain insurance on the property in an amount equal to a specified percentage (often 80 percent)of the property's fair market value.Hence,it prevents the insured from recovering full damages by insuring only a minimum amount.

Which of the Following Is True of the Coinsurance Feature