# Co-insurance

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Published: 2026-10-25T17:04:42.043Z

Updated: 2026-10-25T17:04:42.043Z

In insurance, co-insurance or coinsurance is the splitting or spreading of risk among multiple parties.

## Key facts

## Overview

In insurance, co-insurance or coinsurance is the splitting or spreading of risk among multiple parties.

## In the United States

In the U.S. insurance market, co-insurance is the joint assumption of risk between the insurer and the insured. In title insurance, it also means the sharing of risks between two or more title insurance companies.

## In health insurance

In health insurance, copayment is fixed while co-insurance is the percentage that the insured pays after the insurance policy's deductible is exceeded, up to the policy's stop loss. It can be expressed as a pair of percentages with the insurer's portion stated first, or just a single percentage showing what the insured pays. Once the insured's out-of-pocket expenses equal the stop loss, the insurer will assume responsibility for 100% of any additional costs. 70–30, 80–20, and 90–10 insurer-insured co-insurance schemes are common, with stop loss limits of $1,000 to $3,000 after which the insurer covers all expenses.

## In property insurance

Co-insurance is a penalty imposed on the insured by the insurance carrier for underinsuring the value of the tangible property. The penalty is based on a percentage stated within the policy and the amount underreported.

## In title insurance

Owner's title insurance policy forms of the American Land Title Association created between 1987 and late 2006, contain co-insurance clauses. For partial losses, they require the insured carry a percentage of the risk of loss in two circumstances. The first is if the insured did not insure its title for at least 80% of its market value at the time the policy was issued. In that case, the insurer will pay only 80% of the loss. The second is if improvements constructed on the property after the policy is issued increase the property's value by at least 20% above the amount of the policy. In that case, the insurer will pay a percentage of the claim equal to the ratio of 120% of the amount of insurance purchased divided by the sum of the amount of insurance and the cost of the improvements. Co-insurance is also used among U.S. domestic title insurers in a manner similar to that described below for the international insurance market.

## In other insurance

In some cases, including employer's liability insurance, co-insurance percent denotes a function analogous to the copay function that it has in health insurance, in which the insured covers a certain percentage of the losses up to a certain level. In business income interruption insurance, a type of time-element insurance, the co-insurance percent indicates how long the coverage will last, and can range from 50% to 125%. The former co-insurance allows for 6 months of coverage, compared to 15 months for 125%.

## See also

Cost sharing

## External links

Insurance to Value from the Casualty Actuarial Society

## Sources

- Co-insurance · Wikipedia: https://en.wikipedia.org/?curid=2044841

Source: Wikipedia contributors — https://en.wikipedia.org/?curid=2044841&oldid=1323464411

Licence: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/

Adaptation notice: Reformatted for XPay; the source may be abridged, restructured or translated. Consult the cited revision for the original.