does HO5 have anti-concurrant causation clause?

Posted: Tue Feb 26, 2013 05:18 am Post Subject:

A policy which contains an Anti-Concurrent Causation ("ACC") provision says that if any cause of loss is identified as a policy exclusion and is accompanied by ACC language, the loss will be excluded, regardless of whether another unexcluded cause of loss qualifies as the "proximate cause" under a state's common or insurance law rules.

EXAMPLE: Rain water in a homeowner's policy is usually an excluded cause of loss, because the roof, exterior walls, windows and doors normally keep it out of the house. Wind, on the other hand, is a covered cause of loss. A tornado tears the shingles off the roof, and the ensuing rain enters the house and damages walls, floors, furniture, and other fixtures and personal property. Without ACC language in the policy, the rainwater damage would be covered because it was preceded by a covered cause of loss (the wind). But in a policy with ACC language, the loss would not be covered.

As for your HO-5 policy . . . you must do what anyone else must do: read your policy to know what it says.

Posted: Tue Feb 26, 2013 09:44 am Post Subject:

ACC clauses are often used to deny claims. The ACC provisions are included in the policies issued by some insurers (not all of them). It usually results in a lot of confusion and litigation problems after natural disasters, like after Hurricane Katrina, or Super storm Sandy etc.

Well, you need to check out the fine prints of your policy to find out whether there are ACC provisions or not, Just because your neighbor had it, doesn't mean you'll have that too.

Posted: Tue Feb 26, 2013 01:02 pm Post Subject:

you need to check out the fine prints of your policy