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Concurrent vs. Non-Concurrent Causation Clauses

House on fire and submerged in flood waters to illustrate the effects Non Concurrent Causation Clause on a homeowners insurance policyConcurrent vs. Non-Concurrent Causation Clauses: What You Need to Know

Ever read your home insurance policy and come across big words that make your head spin?  You’re not alone. Today, we’re going to break down two of those tricky terms: “concurrent causation and “non-concurrent causation.” Knowing the difference between these two can be a game-changer when it comes to getting money for damages.

What’s Concurrent Causation?

Simple Explanation: Let’s say two things damage your property at the same time. If your insurance covers at least one of those things, they’ll pay for all the damages.

Example: Imagine you have homeowners insurance that covers damage from fire but not from floods. A storm comes through and floods your home and causes the house to catch on fire. If your policy has a “concurrent causation” clause, you’re in luck!  They should cover the claim because fire damage is included in your insurance policy.

Remember Superstorm Sandy in New Yourk / New Jersey?  There were several houses that started burning during the flooding due to the gas lines being compromised.  These homeowners had their damage covered.  Since fire was a covered peril, the insurance companies had to pay the claims, even though flood was excluded.

It was soon after Superstorm Sandy that the insurance industry started changing to a non-concurrent causation clause in their property insurance policies.

So, what is Non-Concurrent Causation?

Simple Explanation: This one’s the opposite. If two things damage your property and one of them isn’t covered by your insurance, they won’t pay for any of the damages.

Example: Using the storm scenario again, if your policy has a “non-concurrent causation” clause, you won’t get any money. This is because flood damage isn’t covered, even though fire damage is.  Because the flood is excluded, the insurance company will not pay for any damages resulting from this claim.

Why Should You Care?

Depending on which clause your policy has, you could either get all your damages paid for or get nothing.

So, it’s super important to:

  1. Check Your Policy: Read it carefully and see what’s covered and what’s not.
  2. Ask for Help: If something’s unclear, ask someone. Your insurance agent is there to help. You can reach out to Huff Insurance at 410-647-1111 with any questions.
  3. Think About Where You Live: If you live in a place where storms are common, make sure your policy covers what you need.

Does Maryland Allow Non-Concurrent Causation Clauses?

Yes. Non-concurrent causation clauses are allowed in the state of Maryland.

Maryland did pass a law saying insurance companies must explain the non-concurrent causation clause to homeowners every year.  This law, named H.B. 695, started on June 1, 2013, thanks to Governor Martin O’Malley.  It means insurance companies need to send a clear yearly letter to homeowners about this rule.  This letter advises homeowners to read their insurance papers to fully understand what’s not covered.  If they have questions, they can talk to their insurance agent for more information.

Wrapping Up

Insurance can be confusing, but it’s there to help when things go wrong. By understanding these terms, you can make sure you’re getting the best protection for your money. So, next time you look at your policy, you’ll know what’s up!

Thanks for taking the time to learn a bit more about non-concurrent causation.

We hope you found this article valuable. Feel free to contact us if you have any questions or need further support. Huff Insurance is here to help make sure you and your family are always safe and protected.

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