Plain-English meaning
A requirement tied to carrying insurance at or above a stated percentage of value; the exact effect depends on the policy.
Why it matters
Falling below the requirement can affect how some covered losses are calculated.
Where you may see it
Property conditions, replacement-cost provisions, and commercial or specialty forms.
What to verify
The required percentage, valuation method, applicable formula, exceptions, and current insured value.
Do not confuse it with
A deductible, which is the policyholder's stated share of a covered loss.
For policy-specific meaning, read the definition and related provision in the issued policy.