Free primer · 2 pages

Underinsurance & the co-insurance clause, explained.

A plain-English guide for owners, brokers and managers: what underinsurance is, how a co-insurance clause can affect a partial-loss claim, and why the answer always depends on your own policy wording.

What's inside

  • What underinsurance and co-insurance mean

    In general terms — and why the percentage, the definition of value and any endorsements are set by each policy.

  • A clearly fictional illustration

    Invented figures showing the general idea of a proportional reduction, before deductibles, limits, exclusions and endorsements. Not a claim payable.

  • What to check at renewal

    Five questions to raise with your broker about your policy wording and the figure on your schedule.

  • Sources and limits

    Links to Insurance Bureau of Canada and an insurer's published illustration, plus a clear note that it is general information only.

General information only — not insurance, legal or valuation advice, and no guarantee of any claim result. Your policy wording and your broker's advice take precedence.

Get the primer (PDF)

PDF · 2 pages · plain English · for property owners and brokers

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