What is Concurrent Insurance – Can You be Insured by Two Companies?

What is Concurrent Insurance? How does it work? Is it possible to purchase several insurance policies? Can a single property be insured by several policies? What is Concurrent Insurance

This and many more are the questions that come to the mind of a person who thinks that a single policy cannot provide the coverage needed for a risk that is likely to occur. This article will provide answers to all these questions.

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What is Concurrent Insurance

Concurrent Insurance refers to two insurance policies covering the same risks within the same period of time. It occurs when an insured person purchases another policy in addition to the primary policy. The additional policy then acts to provide excess coverage in the case of any.

How Concurrent Insurance Works

As earlier stated, concurrent insurance involves filing two insurance claims for the same cause from two insurance policies that cover the same risk. When you face risk and probably believe that only one insurance company cannot cover the losses, concurrent insurance policies can be a good idea for you to consider.

In the event of a risk, the primary policy pays the cost of the risk up to its coverage limit first. Thereafter the additional or secondary payer covers the risks the primary issuer could not cover.

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If a risk occurs, you can review the terms of both insurance policies and decide the policy that could be more efficient in covering the risk. This can allow you to even recover the full amount of the loss from whichever policy you choose.

However, determining the insurance company to cover the risk could be a problem in some cases. This might eventually lead to the issue being taken the court. The court then decides which insurance policy should cover the loss after reviewing the policy that is more specific to cover the risk.

Concurrent Insurance vs. Concurrent Causation

Concurrent insurance involves holding two or more policies at the same time for a property. In this case, the loss is covered by one policy (the primary policy). The other policy (the secondary policy) may only cover the damages when there are excesses.

Concurrent causation is more like property insurance. It is a doctrine that allows damage caused by two or more causes to be covered. A property might be damaged by two causes where one is covered by the insurance policy and the other is not. However, this legal agreement allows both causes to be covered.

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What Is Concurrent Causation?

Concurrent causation is used in an insurance claim to handle damages or losses that arises from more than one cause. It is a legal doctrine that comes from court rulings and proceedings. This doctrine comes into use when a dispute occurs over a loss and the issue requires the intervention of the court.

If damage occurs to property and one of the events is covered by an insurance policy while the other isn’t, both events may be covered. The insurer becomes responsible for the coverage of both the covered and excluded event if both events combine to cause the loss.

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How is Concurrent Causation Applied?

Concurrent causation is applied when two or more events have contributed to a loss. This loss might occur simultaneously or sequentially.

Supposing a residential building has been damaged by wind and flood. This loss has been caused by two damages. Meanwhile, the flood is covered under the insurance policy and the flood isn’t. The concurrent causation doctrine, if applied to this loss, specifies that the loss is covered by the insurance policy.

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What are Concurrent Claims?

A concurrent claim is a request for compensation of damages from two policies that offer the same coverage within the same time period. Also, claims are requests made to an insurance company to extend the payments of bills.

It also involves requesting an increase in the time frame initially agreed upon with the insurance policy. A claim is also approved for continued medical treatment and payment of medical bills.

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Can You be Insured by Two Companies?

Yes, it is possible to be insured by two insurance companies. However, you should know that being insured by two companies means you pay more premiums at the specified time. You will also be required to pay two deductibles when you want to file a claim from both companies.

Can I Claim from 2 Insurance Policies?

You are legally permitted to claim from two insurance policies. In such cases, there is a primary policy that will cover the cost of risk first. Also, there is a secondary policy that acts as coverage for excesses.

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What is Anti-concurrent Causation?

An anti-concurrent causation clause (ACC) is a clause that specifies that a loss is not covered when it occurs from two or more events. When a loss is caused by two events in which one is excluded from an insurance policy, this doctrine does not cover the loss.



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