What is overlap of insurance?
Brief definition: Overlap of insurance occurs when the same damage is covered by multiple insurance policies. For example: you have both a home contents insurance and travel insurance, and both cover your stolen laptop. The question is: which insurer pays? This is regulated in Article 7:961 of the Dutch Civil Code.
When does overlap occur?
Overlap occurs in various situations:
- Double coverage: You have two insurances covering the same risk
- Supplementary insurance: A travel or credit card insurance alongside your basic insurance
- Business and private: Your employer has insurance that also covers your private situation
- Family members: Multiple family members have their own insurance for the same risk
Legal regulation: Article 7:961 Dutch Civil Code
The law regulates overlap as follows:
- Main rule: In case of overlap, all insurers are jointly liable for the damage
- You choose: You may decide which insurer you claim from
- No double payment: You never receive more than the actual damage
- Internal settlement: Insurers arrange between themselves who pays what (recourse)
How do insurers deal with overlap?
After-you clause
Many policies contain an "after-you clause": the insurance only provides coverage if other insurances do not pay. If both insurances have this clause, they are deemed not to have an after-you clause.
Primary and secondary coverage
- Primary insurance: Pays first (usually your main insurance)
- Secondary insurance: Only pays the difference or what remains
Tips for overlap of insurance
- Report the damage to all insurers that may provide coverage
- Read the policy conditions to see which insurance is primary
- Ask insurers in advance how they deal with overlap
- Keep all correspondence with both insurers
Frequently asked questions about overlap of insurance
Can I claim twice in case of overlap?
No, you never receive more than the actual damage. However, you may choose which insurer you claim from. That insurer then arranges the internal distribution with the other insurer.
What is an after-you clause?
An after-you clause determines that the insurance only pays if other insurances do not provide coverage. If both insurances have this clause, the damage is divided proportionally.
Where can I get help with overlap of insurance in Utrecht?
A lawyer specialized in insurance law can help you with overlap issues. Contact us for advice in Utrecht.