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The courts have taken different views on anti-concurrent causation clauses. (Photo: iStock)

The concurrent cause rule basically holds that if two or more events cause a loss, with one being excluded under the policy terms and the other(s) being covered, the policy should provide coverage for the loss.

As discussed in Davidson Hotel Co. v. St. Paul Fire and Marine Insurance Co., 136 F. Supp. 2d 901 (2001), this rule allows for coverage “where the loss is essentially caused by an insured peril with the contribution of an excluded peril merely as part of a chain of events leading to the loss.” The thinking behind this ruling and other concurrent causation cases is that the cause of loss that is not excluded caused damage to the insured’s property in one way or another, so the property coverage form must pay for the loss.

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