12.11.25

Can You Claim on More Than One Insurance Policy in the UK?

In today’s complex insurance landscape, it is not uncommon for individuals or businesses to hold multiple insurance policies in the UK covering the same risk. Whether through intentional duplication or transitional overlap during policy changes, the question arises: Can you claim on more than one insurance policy in the UK?

Understanding the Legal Framework

Yes, UK law permits individuals to hold more than one insurance policy for the same item or risk. This is particularly common in areas such as life insurance, where multiple policies may be taken out to cover different financial obligations. However, when it comes to general insurance—such as home, motor, or travel insurance—the rules governing claims are more nuanced.

The Principle of Indemnity

At the heart of UK insurance law lies the Principle of Indemnity, which ensures that policyholders are compensated for their actual loss, but not more. Insurance is not designed to be a source of profit. Therefore, even if multiple policies exist, the total payout across all insurers cannot exceed the value of the loss.

The Contribution Clause

Most general insurance policies include a Contribution Clause, which outlines how insurers will share the cost of a claim when more than one policy is in force. In practice, this means:

• You may notify all relevant insurers of the claim.
• Each insurer will contribute proportionally to the settlement, based on the level of cover provided.
• You cannot claim the full amount from each insurer separately

For example, if two home insurance policies cover the same £10,000 loss, each insurer may pay £5,000—assuming equal coverage.

When Multiple Policies Make Sense

There are legitimate scenarios where holding multiple policies is advisable:

• Life Insurance: Multiple policies may be tailored to different financial goals, such as mortgage protection, income replacement, or inheritance planning.
• Buildings and Contents Insurance: Separate policies may be held for structural cover and personal belongings.
• Business Insurance: Layered policies may be used to manage complex risk portfolios

Risks and Considerations

While legal, multiple policies can introduce complications:

• Disclosure Obligations: Failure to inform insurers of other active policies may result in claim denial or policy cancellation.
• Claim Delays: Coordinating between insurers can slow down the claims process.
• Fraud Risk: Attempting to claim more than the actual loss is considered insurance fraud and may lead to prosecution.

Best Practices for Policyholders

To ensure compliance and avoid unnecessary complications:

• Always disclose existing policies when taking out new cover.
• Review your insurance portfolio regularly to avoid unintentional duplication.
• Consult with a qualified broker to ensure your coverage is appropriate and efficient.

Final Thoughts

While claiming on more than one insurance policy is legally permissible in the UK, it must be done within the bounds of indemnity and contribution. Policyholders should approach multiple cover arrangements with transparency and strategic intent. As a trusted insurance broker, we are here to guide you through these complexities and ensure your protection is both comprehensive and compliant.

Information provided by Donna Hatton, Cert CII (Claims) Claims Manager, Cox Mahon Ltd.