Other insurance types involve situations wherein two or more insurance companies offer coverage for assets. Most types of insurance policies, except life insurance, feature “Other Insurance clauses”.
These clauses are about the provision detailing how each insurance company will provide coverage as a part of the claim for the same loss. The portion of an insurance company’s payout is usually proportional to the insured amount promised in the policy.
However, some insurance clauses mention that only one insurer will make payment while the other cannot be held responsible. Depending on the insurance clause, the sum that the other insurer is obliged to pay varies from one policy to another.
