What are concurrent policies?

Concurrent policies refer to separate insurance contracts that provide coverage for the same interest and identical property in the event of a loss. This means that if multiple policies exist on the same property or interest, they are designed to address the same risk. In the case of a claim, this can ensure that the policyholder has adequate coverage from various sources without overlaps that could create complications during the claims process.

For instance, if two different insurers provide coverage for the same building against a particular peril, they are considered concurrent policies. This can be beneficial for the insured, as it allows them to claim from both policies if necessary, as long as the coverage terms are aligned.

Other choices do not accurately describe concurrent policies. For example, policies covering different properties or various types of risks do not align with the definition since they pertain to distinct interests rather than the same one. Similarly, policies that vary in coverage amounts do not reflect the essence of concurrent policies, which focus on identical coverage for the same loss rather than differing levels of protection.