One question many insurance providers hear from clients is whether or not it is legal to take out double homeowners insurance policies on a single property. While it is technically legal, there is usually language within each individual policy contract stating which company pays out the bulk of acclaim, should one arise. Sometimes this involves the companies splitting the payout equally or in terms of who has the higher coverage limits.
However, whether you are double insuring a home with two different policies on purpose or as an oversight, it is important to realize that a claim will most likely not be paid twice. Many states prevent insurance customers from gaining anything more than they initially had from a claim. In fact, most insurance regulation limits policyholders to receiving only the payments needed to indemnify (aka get you back where you were previous to the claim.) A double payment, whether it is from one company or two, would exceed this.
How can a home become insured twice? Usually, this has to do with a simple error regarding remembering who the property was insured with in the first place. It can also happen when homeowner’s switch companies and forget to cancel the previous policy in writing.
So, why should you make sure that your home isn’t double insured? Paying two yearly premiums can be a drain on your bank account, especially if it has no benefit in terms of filing a claim. Save yourself all that cash and spend it on something that’s a little more important to you.
For more information on auto insurance and/or homeowners insurance in Coppell, Texas, please contact your independent agent today.
