Concurrent Causation

Example

“The homeowner's flood damage claim involved concurrent causation because both the covered windstorm and the excluded flood contributed to the basement water damage.”

Memory Tip

Think 'RACING TOGETHER' - concurrent causes are like two race cars running together toward the same finish line (the loss).

Why It Matters

Concurrent causation can significantly impact claim payments, potentially reducing or eliminating coverage when multiple factors cause a loss. Understanding this concept helps you better evaluate your coverage gaps and consider additional policies to fill protection holes.

Common Misconception

Many policyholders assume that if any covered cause contributes to their loss, the entire claim will be paid. In reality, many modern policies contain anti-concurrent causation clauses that exclude coverage entirely when any excluded peril contributes to the loss, regardless of covered causes.

In Practice

During Hurricane Sandy, Tom's beachfront home was damaged by both wind (covered) and flood (excluded). The wind tore off roof shingles allowing rain inside, while storm surge flooded the first floor. Damage assessment showed $80,000 in wind/rain damage and $120,000 in flood damage. Under traditional concurrent causation rules, Tom might have recovered the $80,000 wind portion, but his policy's anti-concurrent causation clause excluded the entire $200,000 claim because flood (an excluded peril) contributed to the overall loss.

Etymology

From Latin 'concurrere' meaning 'to run together' and 'causa' meaning 'cause.' The legal doctrine developed in insurance law during the 20th century to address complex claims with multiple contributing factors.

Common Misspellings

Related Terms

More in insurance

Other insurance terms you should know

See Also