Other Insurance
What Does Other Insurance Mean?
Other insurance refers to situations where multiple insurers cover the same asset or assets. Most types of insurance, except life insurance, include “other insurance clauses.” These clauses typically state that, in the presence of other insurance, the insurers will each pay a portion of the claim.
Insuranceopedia Explains Other Insurance
The portion of the loss that each insurer must pay is typically proportional to the insured amount of their policy. However, this is not always the case. Some other insurance clauses specify that, in the event of a loss covered by multiple insurers, one insurer may bear the full responsibility, while the others have no obligation. The amount each insurer is required to pay can vary from policy to policy, depending on the terms of the other insurance clause in the specific policy.
