Hurricane Michael: Concurrent Causation in Florida

Hurricane Michael is making landfall in the panhandle of Florida as a wildly unexpected Category 4 hurricane. There will unquestionably be damage to structures caused by both storm surge/flood and wind. To the extent that one of the causes (e.g., storm surge/flood) is excluded and one cause (e.g., wind) is covered, this will inevitably lead to disputes over causation and the application of the concurrent causation doctrine.

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Hurricane Florence: Concurrent Causation in North and South Carolina

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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2018 Hurricane Season Promises to Pack a Punch

2018’s first named tropical weather system already struck Florida and states near the Gulf of Mexico. Sub-tropical storm Alberto came a full week before the official start of the 2018 Atlantic Hurricane Season and serves as an unpleasant reminder of 2017’s devastating storm impact. Last year’s hurricane season was one of the most active and destructive in recorded history, producing seventeen named storms and causing over $250 billion of damage across the Gulf Coast and Puerto Rico. And, according to the National Oceanic and Atmospheric Administration’s (“NOAA”) forecast, this year’s hurricane season could be dangerously similar. 

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Hurricane Irma – The State of Concurrent Causation and ACC Clauses in Florida

For years Florida courts were plagued by the issue of determining the appropriate theory of recovery to apply when two or more perils converge to cause a loss and at least one of the perils is excluded from an insurance policy. Florida courts developed two competing (and potentially inconsistent) theories on how to assess coverage: the efficient proximate cause and concurrent causation doctrines. In December 2016, the Florida Supreme Court in Sebo v. Am. Home Assurance Co., 208 So. 3d 694 (Fla. 2016) put an end to this decades-long debate when it formally adopted the concurrent causation doctrine in a case involving multiple perils and a first-party insurance policy.

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Irma - Concurrent Causation in Puerto Rico

While Puerto Rico was spared a direct hit from Hurricane Irma, it was lashed by Irma’s wind and experienced significant amounts of rain that will likely lead to flooding. There may also be damages arising from storm surge along the Northern Coast. Reportedly, more than 1 million people are without power. Many policies may exclude flood and limit or exclude losses arising from power interruption. Combined with the significant wind damage that is expected, it is inevitable that disputes over the extent of covered versus non-covered loss will arise.

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Concurrent Causation and Texas Law (Re-Post from August 31)

Hurricane Harvey initially hit the Texas Gulf Coast with damaging winds and storm surge. As it downgraded to a Tropical Storm, Harvey dumped the highest amount of rainfall on the Houston area ever recorded from a single storm, resulting in record flooding. In analyzing Harvey claims under a property insurance policy, standard residential policies exclude flood, and most commercial policies either exclude or sub-limit flood damage.

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Concurrent Causation in Louisiana: The Basics

• Anticipated damage from Hurricane Harvey is expected result from wind, wind-driven-rain, and flood. Under most policies, damage caused exclusively by wind or wind-driven rain is recoverable, but damage caused exclusively by flood is excluded or sub-limited. Where possible, Louisiana courts apportion between wind damage and flood damage.

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Concurrent Causation and Texas Law

Hurricane Harvey initially hit the Texas Gulf Coast with damaging winds and storm surge. As it downgraded to a Tropical Storm, Harvey dumped the highest amount of rainfall on the Houston area ever recorded from a single storm, resulting in record flooding. In analyzing Harvey claims under a property insurance policy, standard residential policies exclude flood, and most commercial policies either exclude or sub-limit flood damage.

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