What is Co-Insurance?
Co-Insurance is a form of property insurance in which the insured shares in losses proportionately to the extent that the amount of insurance falls short of a specified percentage of the value of the insured property. For example, if you insured your goods for $10,000 while the entire actual value of the goods is $100,000, your proportionate claim settlement amount (in case of a claim) would be 1/10 of the actual value. For example, a lost item worth $6,000 will yield a settlement in the amount of $600 (minus any deductible, if applicable).
When you make a claim, you pay a specified percentage of the cost of the treatment and applicable deductible and your insurance pays for the remaining part. Co-insurance ensures you are making informed, responsible decisions about the care of your pet. And by sharing in the care of your pet, you’re also helping to keep your pet insurance premiums down.
For some service categories, you may share in the cost of your dental expenses. This is represented as a percentage of the negotiated fee for covered services. The percentage of co-insurance usually depends on the type of service received (preventive, basic, or major). Network services are typically reimbursed at a higher co-insurance percentage.
Related Questions
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