what is coinsurance

Coinsurance, also known as co-insurance, is a concept commonly used in insurance, including health insurance and property insurance. It refers to the sharing of risk between the insurer and the insured. In the context of health insurance, coinsurance is the percentage of the costs of a covered health care service that the insured person pays after the deductible has been paid. For example, if the coinsurance is 20%, the insured person pays 20% of the costs, and the insurance company pays the rest. There is usually a stop loss limit, after which the insurer covers 100% of any additional costs. Coinsurance is different from a copayment, which is a fixed amount paid for a covered health care service, and a deductible, which is the amount the insured person pays before the insurance company starts to pay. In property insurance, coinsurance can also refer to the sharing of risk between the insurer and the insured, and it is often expressed as a percentage that indicates how long the coverage will last