With formidable winds, tremendous storm surge and prolonged rain, the damage caused by Hurricane Florence will no doubt reignite the age-old debate: what happens when damage is caused by both covered and excluded perils? The two predominant cause tests utilized in multiple cause scenarios are the “efficient proximate cause” test and the “concurrent causation” test. Under the “efficient proximate cause” test, if the efficient proximate cause of the damage is a covered peril, then there is coverage for the damage. Under the “concurrent causation” test, if a covered and excluded peril contribute concurrently to the damage, then the damage is covered, regardless of the degree of damage caused by the respective perils.
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