Calculation of indemnities when syndicate has insufficient insurance
The syndicate suffers $70,000 damage.
The coverage for this loss is limited to $40,000, resulting in an insurance insufficiency of $30,000.
No responsible co-owner
The syndicate can apportion the $30,000 among the ten co-owners.
Each co-owner receives a $3,000 apportionment representing his/her share of the $30,000 ($30,000 x 10% = $3,000).
The insurer does the following calculation:
Co-owner’s apportionment :
$3,000
Less
The portion of the syndicate’s deductible ($10,000 X 10%):
$1,000
The co-owner’s deductible :
$500
Total payable by the insurer :
$1,500
The co-owner must pay $1,500.
Co-owner at fault
The syndicate can claim the responsible co-owner for the $30,000.
The insurer of the responsible co-owner indemnifies for Civil Liability Coverage.