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Theoretical question here, I am just curious. No damage has occurred.

if I were to have a Vehicle in a garage attached to the home and the home burned to the ground or was flooded and damaged the vehicle in the garage, could I make a claim for the vehicle on both insurances?

Let's say that they are two different insurance companies. (if it were the same insurance company would they only pay on one insurance or lump them together?)

My thoughts are that I am paying for both coverages and should be able to collect from both. if the vehicle were not in the Garage it may not have been damaged (fire).

on the other hand I feel like this would be taking advantage of the Home owners insurance.

Would it be insurance fraud to claim on both insurances?

  • 1
    Is your question whether, for a covered event under two policies, can you collect on a claim under both policies? Or is it specifically the auto in a garage question? They're technically different and I would say first and foremost read your policy as it very likely has the exclusions and potential overlaps in coverages carved out. – BruceWayne Jan 23 '17 at 4:22
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Almost all insurance policies have clauses insisting that benefits be coordinated with other insurers, specifically so you do not get paid twice for the same loss. That reduces the temptation to commit insurance fraud, among other reasons -- it prevents situations where the insurance adds up to more than replacement value.

  • "it prevents situations where the insurance adds up to more than replacement value." Are those illegal or specifically excluded in such insurance agreements? I can imagine such cases falling under heavy scrutiny for the reason you mentioned but surely it's a consumer decision to insure an object twice or for an arbitrarily high value? – Lilienthal Jan 23 '17 at 10:31
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Insurance is used to help cover the reasonable replacement value of the insured item. In short, don't expect to profit from having 2+ insurance accounts covering one specific item. During the paperwork, the claimant will be asked if they have additional coverage for the item. If so, and it's intentionally not reported, in hopes to profit off an additional claim, you will be involved in fraud. Most don't understand that the insurance companies do maintain a shared database of claims and are well aware. If the claimant lies intentionally in hopes of attempting to collect multiple times on the same item...they'll find out.

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There are usually two types of insurance.

General Insurance: [Also known as Non-Life Insurance] One covers damage and theft, in your case the damage to a car, that type only covers the value of the item (or the health care bills). Even if you are insured in more than one company you can never get more than the value of the insured item (or the amount of the bills). For items there are usually two types, one covering the present value of an item (cars' values goes down over time) or the cost of buying a new item.
This is ensure one does not make profits due to an event and as the cost is known for replacement, the value is capped to the known loss.

Life Insurance: Another type covers an amount paid out if a certain event happens, like death, injury (losing a foot, finger). Then you can have more than one policy and they will all pay out.
This is because you can't put a value to life.

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