Co-insurance

Co-insurance in Jamaica is a health or property insurance provision where the insured shares the cost of a claim with the insurance company, typically after meeting a deductible. This arrangement is defined by a percentage split, such as 80/20, where the insurer covers 80% of the claim, and the insured is responsible for the remaining 20%. Co-insurance is commonly applied in health insurance policies or property insurance for high-value assets, helping to reduce the insurer’s risk and encourage responsible behavior by the insured. Co-insurance comes into play when a claim is filed and the insured has already paid the deductible. The insured then pays their percentage of the costs, which can influence how much coverage they choose and how they manage risks. Understanding co-insurance is crucial for making informed decisions about insurance policies, as it directly affects out-of-pocket expenses during a claim.