Property Insurance Roundtable

Coinsurance: An Essential Concept in Property Insurance



We assembled four industry panelists to answer these very important insurance coverage questions. This information is intended to assist policyholders by clearing up common misnomers, gauge proper coverages and finding the right broker. Remember, it’s important to read the contract language thoroughly and understand which policies cover which assets to make sure you are reimbursed properly in the event of a loss.

Coinsurance Calculation

Coinsurance Calculation

Key Takeaways

  • [00:35] Introducing the panelists
  • [01:08] What is coinsurance?
  • [04:46] Why would coinsurance be included in a policy?
  • [09:04] What challenges do policyholders face when filing an insurance claim on policies including coinsurance?
  • [17:00] What role does the deductible play in calculating coinsurance penalties?
  • [20:56] What can policyholders do to ensure their policy coverage is adequate?
  • [37:54] What options do policyholders have if they have a coinsurance challenge?
  • [42:41] Calculations of depreciation
  • [44:30] Are brokers doing an adequate job of explaining coinsurance, deductibles and replacement costs to insureds?
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G. Craig Becker brings 42 years of adjusting and claims management experience to Globe Midwest Adjusters International. Mr. Becker’s background includes managing the catastrophe operations for Hurricane Andrew, the California firestorms and the North Ridge earthquake. A licensed pilot, he also specializes in aviation claims, as well as commercial property losses. Prior to joining Globe Midwest Adjusters International as an Executive Adjuster in 1997, Mr. Becker was a property claims manager with Fireman’s Fund Insurance Company and a national property claims manager with Atlantic Mutual Insurance Company, from which he earned an outstanding award for claims excellence. Mr. Becker holds a BS degree from Michigan State University.

Craig has been featured as an expert panelist on Adjusters International’s Property Insurance Roundtable podcast in the episode titled, “Coinsurance: An Essential Concept in Property Insurance.”

Scott Eich
Executive General Adjuster
Adjusters International Colorado

Scott Eich of Adjusters International holds current public adjuster licensure in 17 states and has handled claims in over 38 states. He has 29 years of property claims adjustment and management experience with an emphasis on commercial losses, with insurance companies and public adjustment firms. Mr. Eich is knowledgeable in all aspects of claim handling for large fire, wind, hail, water, water intrusion, earth movement and mold claims. He is proficient in business income calculations for all types of businesses and is well versed in a multitude of commercial and personal lines property coverage forms and policies, including CP, BOP, BR, IM, manuscript and HO policy forms. Mr. Eich is experienced at making complex coverage decisions and has worked with coverage counsel on difficult coverage issues for venues across the country. He has been retained on numerous occasions by counsel to act as an expert witness at trials. As an EGA/GA/Manager, he has handled commercial property files in excess of $100 million in damages including building, content, and Business Income loss. He has been involved in the field training of adjusters, conducted presentations on adjusting procedures, technical property training, difficult coverage issues and bad faith issues.

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James R. Mahurin
Risk Management Consultant and member of the Society of Risk Management Consultants

Self-employed Risk Management and Insurance consultant providing fee-for-service assistance to the insurance buyer.  Perform risk management studies, independent evaluations of commercial insurance programs, conduct competitive proposal/bid process and self-insurance feasibility studies.  Work experience includes projects in approximately twenty states.  Litigation support and expert witness services to law firms began following the Daubert decision in 1993. This work split is approximately fifty/fifty between plaintiff and defense.  Litigation involvement includes agent custom and practice, flood (including both NFIP and private insurance), property, crime, liability, employee benefits, property leases, Broad Form Property Damage (BFPD), etc.  The BFPD includes both course of construction and construction defects.

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C. Todd Thomas
Vice President of Risk Management

Todd Thomas is the Vice President at Adjusters International (AI) and Tidal Basin (TB). He is also the Chief Consultant and Partner of Adjusters International’s affiliate Sigma Consulting Corp. He has worked in the Management Consulting industry for 23 years. Currently, he works with AI and TB's strategic partners to offer the highest quality Risk Management and Disaster Recovery consulting services possible. Thomas has worked in a management capacity on high-profile FEMA, insurance and construction projects since 1996. Thomas regularly serves as an expert witness and Special Master to courts in the area of finance & insurance.

Thomas’ experience assisting public entities, non-profits and other organizations with risk management and insurance includes but is not limited to broker selection, insurance marketing, total cost of risk, risk identification, risk allocation, underwriting, claims, financial risk management, FEMA obtain & maintain compliance, risk analysis, risk management information systems and enterprise risk management.

He is a Fellow of the American Academy of Financial Management (FAAFM), Member of the American Economic Association, Member of the Association of Certified Chartered Economists, a Fellow of the Risk and Insurance Management Society, Member of the Global Risk and Insurance Management Institute, Caribbean Actuarial Association and Member of the Institute and Faculty of Actuaries. Todd is a Chartered Economist (ChE), Certified Risk Analyst (CRA), Certified Organizational Risk Manager (CORM), RIMS Fellow (RF), Fellow of Risk Management (FRM), Chartered Property & Casualty Underwriter (CPCU), Associate in Risk Management specializing in Public Entities (ARM-P), Master Project Manager (MPM), Accredited Financial Analysis (AFA), Accredited Management Accountant (AMA) and Workers Compensation Claims Law Specialist (WCLS).


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For further information on this topic, please read our Adjusting Today article: Coinsurance/Insurance to Value Revisited: An Essential Concept in Property Insurance