Under the co-insurance clause the insurance company may reimburse you for less than replacement cost on partial structural damage if the dwelling unit is insured for less than 80% of its replacement cost.

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The co-insurance clause requires that the dwelling unit be insured for at least 80% of its replacement cost. If the unit is insured for less than this amount and partial structural damage occurs, the insurance company may apply a co-insurance penalty, which could result in the insured receiving less than the full replacement cost.

Under the Co-Insurance Clause the Insurance Company May Reimburse You