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  • Writer's pictureBrenda Heffner

When Two Policies Collide: Understanding Coverage Overlaps in Property Insurance Claims

Property insurance is a vital safeguard for homeowners and businesses, providing financial protection against unforeseen events like fire, theft, natural disasters, and other damages. However, when multiple insurance policies come into play, coverage overlaps can become a complex and confusing matter for policyholders.

In this blog, we will explore the intricacies of property insurance, uncover common scenarios where policy overlaps occur, and offer guidance on how to navigate these situations to ensure a fair and equitable resolution.

The Basics of Property Insurance

Property insurance is a contract between an insurer and a policyholder, where the insurer agrees to compensate the policyholder for covered losses. The policy outlines the scope of coverage, exclusions, deductible amounts, and other terms and conditions.

Property insurance typically falls into three primary categories:

a. Homeowners Insurance: Protects the structure of a home and its contents against specific perils, such as fire, theft, vandalism, and natural disasters.

b. Commercial Property Insurance: Provides coverage for businesses and their physical assets, including buildings, equipment, and inventory.

c. Renters Insurance: Offers protection to tenants for their personal belongings and potential liability for damages to the rental property.

Common Coverage Overlaps

Coverage overlaps can arise when a property is insured by multiple policies from different insurers or even the same company but under different insurance types.

Here are some common scenarios where overlaps may occur:

a. Home and Auto Insurance: Some homeowners' personal belongings, such as expensive electronics or jewelry, might also be covered under their auto insurance policy. In the event of theft or damage, a policyholder may not be aware of which policy should be used for the claim.

b. Secondary Residence Insurance: Owning multiple properties often means having multiple insurance policies. If a loss occurs, such as damage due to a storm, determining which policy applies can be challenging.

c. Rental Properties and Homeowners Insurance: If a property owner resides in one part of a property and rents out another part, there might be overlapping insurance coverage, leading to confusion during the claims process.

Navigating Coverage Overlaps

Understanding coverage overlaps is crucial for policyholders to ensure they receive the maximum benefit from their insurance policies.

Below are essential steps to navigate these situations effectively:

a. Review Insurance Policies: Policyholders must review all their insurance policies thoroughly, including endorsements and add-ons, to understand the extent of coverage provided.

b. Notify Insurers: If a loss occurs, policyholders should notify all relevant insurers promptly. Failure to report a claim to all concerned parties might result in coverage denial.

c. Determine Primary and Excess Coverage: In cases of overlapping coverage, identify which policy serves as the primary insurance and which acts as excess or secondary insurance. The primary policy typically pays first, and the excess policy kicks in to cover the remaining expenses.

d. Coordination of Benefits: Insurance companies must coordinate the benefits to avoid double payments or disputes. The coordination process ensures that the total reimbursement does not exceed the actual loss.

e. Seek Professional Assistance: Policyholders facing complex coverage overlap issues should seek guidance from an experienced insurance agent or a public adjuster. These professionals can advocate on behalf of the policyholder during the claims process.

Common Exclusions and Limitations

Policyholders must also be aware of common exclusions and limitations that might affect their claims. Some common exclusions include damages caused by flooding, earthquakes, acts of war, and intentional acts. Understanding these exclusions helps policyholders make informed decisions when purchasing additional coverage.

Avoiding Coverage Duplications

To prevent coverage overlaps in the future, policyholders should take the following steps:

a. Periodic Policy Review: Regularly review all insurance policies, especially when there are changes in the property, ownership, or insurance needs.

b. Bundle Policies: Consider bundling multiple insurance policies, such as home and auto insurance, with the same insurer. Bundling can lead to cost savings and better coordination of benefits.

c. Endorsements and Riders: Instead of purchasing separate policies, consider adding endorsements or riders to an existing policy to extend coverage for specific items or risks.


Navigating coverage overlaps in property insurance claims can be a daunting task. Policyholders must educate themselves about their insurance policies and the potential areas of overlap. By understanding the basics of property insurance, identifying common coverage overlaps, and taking necessary precautions, policyholders can ensure a smooth and efficient claims process. Remember to seek professional assistance when dealing with complex situations, and always stay informed about policy changes and exclusions. With the right knowledge and proactive approach, policyholders can protect their assets and receive fair compensation when the need arises.


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