The other insurance clause in a policy outlines how coverage will be determined if there is more than one insurance policy covering the same loss. This clause is designed to prevent duplicate payments and ensure that the insured receives fair compensation.
There are several common types of other insurance clauses:
It’s important to understand the other insurance clause in your policy, as it can significantly impact how your claims are handled in the event of a loss.
At PSIC, we understand that your insurance needs are unique. That’s why we offer a wide range of customizable policies to fit your specific requirements, whether you’re a homeowner, renter, condo owner, or motorcycle enthusiast, among others.
When it comes to liability coverage, we provide you with ample protection through our standard policies and endorsements. However, if you require even higher liability limits, we encourage you to consider our Umbrella insurance option.
To prevent duplicate coverage and ensure you receive fair compensation, we apply the “other insurance clause” to our policies. This clause specifies that we will only accept insurance on the same dwelling with a second policy for perils that are not covered by our standard policy.
For example, if you already have a Homeowners insurance policy with PSIC that includes coverage for fire, theft, and liability, you could purchase a separate Flood insurance policy to protect against flood damage. In this case, both policies would be considered valid, as they cover different risks.
However, if you were to purchase a second Homeowners insurance policy from another company that covers the same perils as your PSIC policy, the other insurance clause would come into effect. This clause typically determines how coverage will be divided between the two insurers.
It’s important to review your PSIC policy carefully to understand the specific terms of our other insurance clause. If you have any questions or concerns, contact your agent. They can provide you with more information and help you ensure that you have the appropriate coverage to meet your needs.
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Last updated: June 27, 2023
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