insurance

Concurrent Causation

A situation where two or more causes work together at the same time to create a loss, with at least one cause being covered by insurance and another being excluded. This creates complexity in determining whether a claim should be paid.

Example

“The homeowner's claim involved concurrent causation when both wind damage (covered) and flood damage (excluded) occurred simultaneously during the hurricane.”

Memory Tip

Concurrent = 'Con-CURRENT' - multiple causes flowing like currents at the same time, creating a coverage puzzle.

Why It Matters

Understanding concurrent causation is crucial because it can determine whether your insurance claim is paid or denied. Even if one cause of your loss is covered, the presence of an excluded cause might affect your coverage depending on how your policy is written and your state's laws.

Common Misconception

Many policyholders believe that if any covered peril contributes to their loss, the entire claim should be paid. However, when excluded perils are involved concurrently, some policies may deny the entire claim or only pay for the portion attributable to the covered cause.

In Practice

During Hurricane Sandy, a beachfront home suffered $200,000 in damage from both wind (covered under homeowner's insurance) and storm surge flooding (excluded). The insurance adjuster determined that wind caused $75,000 in roof and window damage, while flooding caused $125,000 in damage to floors, walls, and contents. Under the policy's anti-concurrent causation clause, the insurer paid only the $75,000 attributable to wind damage, leaving the homeowner responsible for the remaining $125,000 flood damage that would require separate flood insurance.

Etymology

From Latin 'concurrere' meaning 'to run together' and 'causa' meaning 'cause.' This legal concept developed in insurance law during the 20th century as policies became more complex with specific exclusions.

Common Misspellings

concurent causationconcurrent causasionconcurrant causationconcurrent causation

Related Terms

Proximate Cause Peril

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