Can I cover the same things on different policies?

The insurance industry has designed its insurance policies in an effort to prevent you from collecting more than your property is worth, regardless of how much you insure it. For example, if you insured your house on two different homeowners policies, the policies will both contain an “other insurance” provision that prevents you from collecting double the value of your house. The other insurance provision in insurance policies will dictate how each policy responds in the event there is other insurance available to you for the same loss and same damages. Some policies will share evenly with the other policies, while others may require the other policy to pay first.

The basic principle of insurance is to make you whole after a loss, and not to allow you to profit from a loss. If policyholders were to profit from insurance policies, it would create “moral hazards,” where policyholders might intentionally cause losses simply to profit from them. This is also known as insurance fraud.


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