Apportionment Clause

What Does Apportionment Clause Mean?

An apportionment clause is a provision in a property insurance policy that specifies how much the insurance company will pay for a loss or damage if the insured has another policy covering the same risk.

Insuranceopedia Explains Apportionment Clause

Suppose you have two insurance policies that cover the same property against fire. If the building is damaged by fire, the apportionment clause will specify how much you can claim from each of these two policies. As with any insurance policy, the total amount you can claim will not exceed the value of the damage or loss. The apportionment ensures that you cannot claim from both policies and profit from the situation.