Skeletal Meshes that cover multiple areas?

I’ve followed some tutorials that explain setting up a modular pawn so that the player can swap out clothing and other such items that won’t work with sockets.

With this kind of setup, how do items like open jackets work? If you’re simply swapping the base chest mesh for the jacket mesh how do you handle showing a shirt under the jacket, or having the jacket cover the upper arm and lower arm meshes? Is there some kind of efficient way to layer meshes?

What is the standard and/or best practice for games that have these kind of things?