Definition of "Apportionment"
Javier Paniagua, Real Estate Agent
Circle C Properties
Division of a loss among insurance policies in the proportion that each policy bears to the total coverage applicable to the loss. For example, assume Policies A, B, C, and D have $50,000, $60,000, $70,000 and $80,000 of insurance in force, respectively: a total of $260,000 of coverage. Under the apportionment clause found in many property insurance policies, Policy A's percentage of any loss is 19.23%, Policy B's is 21.43%, Policy C's is 26.92%, and Policy D's is 30.77%.
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