Market & Policy · Insurance Term
Shared and Layered Program (Layered Property Program)
Definition
A shared and layered program is a way to insure large or high-value property by splitting the total limit among several insurers. Each insurer takes a share of a layer, and the layers stack on top of each other up to the full value.
In Plain English
When a portfolio's total insured value is more than one insurer wants to carry, a broker builds a tower. The first (primary) layer may be shared by several insurers, each taking a percentage, with excess layers stacked above it.
These programs are common for coastal, high-value or catastrophe-exposed portfolios, and are often placed partly in surplus lines insurance markets. They can open up more capacity, but the terms must be coordinated so all the policies work together.
A detailed statement of values is essential, because every insurer prices its share from it. Deductibles, especially named storm deductibles, usually apply across the whole program.
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Example
Hypothetical and simplified: a portfolio of hotels has $150 million in total insured value. In the first $25 million layer, one insurer takes 50% and two others take 25% each. Above that, other insurers take shares of the layer from $25 million to $75 million and the layer from $75 million to $150 million.
Why It Matters for Texas Property Owners
Large coastal Texas portfolios sometimes use layered programs because carrying the full wind exposure is more than many insurers want alone. Surplus lines policies in Texas carry a 4.85% premium tax plus a small stamping fee, which applies to each surplus lines layer's premium.
What to Watch For
- Ask that all layers use the same or compatible policy forms and definitions.
- Check how deductibles and sublimits apply across layers.
- Confirm each insurer's financial strength and whether it is admitted or surplus lines.
- Keep the statement of values accurate and current.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write