Insured By Two Companies For The Same Event

[bednobs]

what happens if you need to make a claim but are actually insured by two companies for the same event? would they split it, or both refuse to pay out?

[SirOracle]

Provided both companies are aware of this then they would normally each pay 50% of the loss.

This is a very common situation.

[hc4361]

You need to read the exception clauses of both policies as some insurance companies refuse to pay out if the claim is also covered with another policy.

If that clause isn't in place then they will argue back and forth and may eventually split the claim, so it will take longer to be settled.

It's explained here:
http://www.telegraph.co.uk/finance/personalfinance/insurance/10146719/Do-you-have-too-much-insurance-cover.html

[Peter Pedant]

no issue
happens a lot