What policy condition requires the insured to share in the loss?

The concept of coinsurance in crop insurance refers to a policy condition where the insured is required to share in the loss with the insurer. This sharing of risk typically involves a stipulation that the insured must carry a certain percentage of coverage relative to the value of the crop to receive full compensation for a claim.

In practice, if the insurance policy specifies a coinsurance requirement, the insured must not only understand their responsibility to maintain adequate levels of coverage to avoid penalties but also their proportionate share in any loss that occurs. For instance, if a policy has a coinsurance clause set at 80%, the insured must ensure that they have at least 80% of the crop's value insured. If they fall short of this threshold, they may end up bearing a portion of the loss themselves, even if a covered peril occurs.

This encourages policyholders to insure their crops at adequate levels, thereby aligning their financial interests with those of the insurer. Keeping in mind that the other options like deductible, limit of liability, and exclusion detail varying aspects of a policy—such as the amount the insured pays before coverage kicks in, the maximum amount the insurer will pay, or circumstances that are not covered—it is clear that coinsurance is the condition specifically focused on sharing