In property insurance, what does the "cheapskate" provision address?

The "cheapskate" provision in property insurance typically refers to a clause that addresses how losses will be shared among multiple policies that apply to the same loss. This provision is particularly relevant in situations where an insured holds several policies that cover overlapping aspects of the same risk. It helps ensure that the insured does not receive more than the actual loss amount by coordinating the different coverages.

By specifying how losses are to be shared, the provision prevents scenarios where an insured might inappropriately seek payouts from multiple policies that could exceed the total value of the loss or damage incurred. This creates a fairer distribution of risk and costs among insurance providers and maintains the integrity of the claims process.

The other options pertain to different aspects of insurance policies. For instance, determining what constitutes a catastrophic loss, adjusting premiums based on claims history, or limiting coverage for high-risk items do not directly relate to how policies share losses among themselves. Instead, those options address specific underwriting practices, risk management strategies, or types of coverage that do not influence how losses are allocated across multiple policies.