Concurrent Causation
Definition:
When two or more events combine to cause damage, and at least one event is excluded from coverage.
Explanation:
Insurers often deny claims if an excluded peril contributes to the loss, even if another covered peril is involved. This doctrine can significantly affect payouts.
Example:
If wind (covered) and flooding (excluded) both damage your home during a storm, your insurer may deny the claim under concurrent causation.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.