What does the Other Insurance Clause in a Standard Fire Policy stipulate?

The Other Insurance Clause in a Standard Fire Policy specifies that if there is additional insurance on the same property, the coverage will not be cumulative. Instead, this clause is designed to ensure that no more than the actual loss is covered when multiple insurance policies are involved. In essence, it limits the coverage to what is provided under the policy itself, thus preventing the insured from profiting from a loss by collecting from multiple insurance sources beyond their actual loss.

This clause serves to encourage policyholders to disclose any other insurance they might have to avoid issues during the claims process. If there is other insurance that covers the same risk, the insurer will typically only pay its proportional share of the loss, ensuring that the insured cannot claim more than the total amount of the loss.