What is another name for the coinsurance clause in homeowners and dwelling policies?

The coinsurance clause in homeowners and dwelling policies is often referred to as the Loss Settlement Clause. This terminology emphasizes how property loss claims are resolved in relation to the insured value of the property. The purpose of the coinsurance clause is to encourage policyholders to insure their property to a value that reflects its actual value. If the property is underinsured at the time of a loss, the payout may be reduced based on the coinsurance percentage. This clause outlines the conditions under which losses are settled and reflects the importance of maintaining adequate coverage.

The other options do not accurately describe the coinsurance provision. For instance, a Settlement Agreement Clause typically relates to the terms and conditions under which both parties can settle a dispute, rather than addressing how losses are calculated in insurance. Similarly, a Loss Protection Clause might imply broader coverage but does not specifically address the coinsurance principle. The Property Valuation Clause could pertain to how a property's worth is determined but would not primarily encompass the specific mechanics of coinsurance. Thus, referring to it as the Loss Settlement Clause correctly captures the focus on loss resolution tied to the insured value.