What happens under the Other Insurance condition when two property policies cover the same loss?

The Other Insurance condition is a crucial part of property insurance policies that helps manage situations where multiple policies provide coverage for the same risk or loss. When such a scenario arises, the primary function of the Other Insurance condition is to establish how claims are settled to avoid overindemnification and ensure fairness in the claims process.

In cases where two property policies cover the same loss, the typical approach is for each policy to contribute to the payment of the claim in proportion to their respective coverage limits. This is known as pro-rata sharing. For example, if one policy covers 60% of the total insurable value and another covers 40%, then each policy would pay those respective percentages of the loss. This method prevents an insured from profiting from a loss while ensuring that all insurers share the financial responsibility in a fair manner.

When considering the context of the question, the other options do not accurately reflect how the Other Insurance condition operates. The possibility of one policy paying the entire claim does not hold, as it contradicts the equitable sharing principle. Moreover, saying that coverage is null and void is incorrect because the policies remain in effect; they simply coordinate in how they respond to the claim. The idea that the insured would receive compensation from the policy with the