Suppose you have an item, that is insured with two different companies. And now something happens to it. Is it legal to claim with both companies ?
no. That is to say, it is illeagal to recieve compensation from one insurer and not notify the other. once informed, I think we can both assume that the second insurance company would not pay out.... The idea of insurance is to compensate or replace your loss. If one company compensates or recoupe's your loss, by definition there is no loss, therefor you have no qualifying reason to accept compensation from another company.
The biggest risk is that both insurers may well claim that the policy is invalid because the item is already insured!
Think it through. Say you bought a house (or anything, even a TV) and then insured it against loss or damage from not one, but two companies. Then your house misteriously burns to the ground (or your TV is stolen). Now, do you thing it's ethical or even legal to collect full value from both insurance companies? A $250,000.00 home now gets you a half mil because it burned? Gee, why not have 4 companies insure it and then collect a million dollars. I can handle that. I would be rich in just a matter of weeks. No, it's not ethical. It's not even legal. If it were, there would be a lot of rich arsons. Instead, they call it insurance fraud and the prisons have lots of failures. Grump
The other way to look at it is by thinking of the item you are insuring. It is yours until your insurance company pays you for it, that's when ownership passes to the insurance company. For example: I buy a car for £1000 and insure it with an insurance company, The car is written off in an accident, you file a claim with insurer who pays you enough money to get you back to the state where you were before the accident took place. The "remains" of the car now belong to the insurer... if you had two insurers the ownership of the wreck could only tranfer to one thereby invalidating the other.
