Homeowners rely on insurance to protect their property from unfortunate events and unforeseen damages. However, filing a claim is complicated when there are multiple probable causes of loss and damage. This is known as concurrent causation; depending on your policy, it may cover the entirety of your loss. The following guide covers what you should know about this insurance term.

What Are the Examples of Concurrent Causation?

Concurrent causation allows policyholders to collect both covered and uninsured losses if they occur at the same time. For example, if a fire breaks out in your home and also damages your water pipes, resulting in leaks, you can be compensated for both losses.

Even if your insurance only covers fire damage and not water damage, you may be able to receive compensation for both if the combination of the two incidents produces the losses in your house.

How Does the Anti-Concurrent Causation Clause (ACC) Factor In?

Some insurance agencies add an anti-concurrent causation clause to policies to reduce their number of payouts. Adding this clause excludes uncovered events, even if they contribute to damages and losses when combined with a covered claim. 

In the case of a fire that affects the plumbing and triggers a leak, the existence of an anti-concurrent clause might exclude losses from water damage, even if it occurred concurrently with the covered fire damage.  

Does the ACC Always Apply?

Even if your insurance policy has an ACC, you may still be able to justify compensatory damages by proving that the predominant cause of your loss is a covered peril in your policy. This is known as a proximate cause. For example, if you know that the covered fire damage is the biggest contributor to your damages, you can convince the insurer to cover everything by presenting evidence. Support for the claim may include written statements from witnesses or actual physical evidence of the extensive damage. 

Protect your property with an insurance policy from Insurance Savers in Phoenix, AZ. For over 20 years, homeowners across Phoenix, Mesa, Glendale, and the North Valley Area have trusted this insurance agency to customize policies that meet their unique needs. Their reliable team of insurance agents will help you understand all terms and benefits you are entitled to as a policyholder. Call them today at (602) 265-9311 to request a free quote, and visit them online to learn more about their offerings.