Q: When is there a Double Insurance and Over Insurance?

DOUBLE INSURANCE OVER INSURANCE

 There may be no over-insurance when the sum total of the
amounts of the policies issued does NOT exceed the
insurable interest of the insured.
 ALWAYS several insurers.
 Exists where the same person or property is insured by
several insurers separately with respect to the same subject
and interest (Sec. 95, ICP)
 Amount of the insurance is beyond the value of the
insured’s insurable interest.
 There may be only one insurer involved.
 Results when the insured insures the same property for an
amount greater than the value of the property with the
same insurance company.
 May exist even if there is only one insurer and one policy;
 May likewise exist if there is double insurance;
 It does not follow, however, that there will be over
insurance if there is double insurance. In fact, there can be
under-insurance even if there is double insurance.
 The taking of another insurance without over-insurance is
not a ground to rescind the policy under Section 64(f)

REMEMBER: Double insurance is valid (there is no law providing that double insurance is illegal per se); what is prohibited is for the
insured to recover more than his interest or value of the property pursuant to the principle of indemnity. (Sec. 96, ICP)