Apportionment Clause

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Apportionment Clause

When more than one property insurance policy covers the same event, a clause stating that each policy only provides coverage in proportion to the total coverage each policy provides. For example, one may have two policies covering one's home from fire damage. Policy A provides maximum coverage of $40,000 and Policy B provides $60,000, for a total of $100,000. If the home catches fire causing $50,000 in damage, the apportionment clause in each insurance policy requires that Policy A pay for $20,000 and Policy B pay for the remaining $30,000.
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