Most Standard Property Insurance and some Jewelers Block policies contain a very insidious clause - the Coinsurance Clause. It is a rather convoluted requirement under such policies that state you must carry a certain percentage of the actual value of the property insured (80 percent , 90 percent or 100 percent) or you will suffer a 'penalty' for underinsurance. Hence, you could be prevented from collecting the full amount of your loss, even a 'partial' loss, if you are found to be underinsured.
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