Anti-Concurrent Causation
A policy clause that excludes coverage when a covered peril (like wind) and an excluded peril (like flood) combine to cause damage. If both causes contribute, the entire loss is denied under this clause.
What Is Anti-Concurrent Causation
Anti-concurrent causation (ACC) is an insurance policy clause that excludes coverage when a covered cause of loss and an excluded cause of loss combine to produce damage, allowing the carrier to deny the entire claim rather than separating and paying for the covered portion. The clause is designed to prevent policyholders from recovering for excluded perils by arguing that a covered peril also contributed. In practice, it is one of the most powerful and controversial tools carriers use to deny claims.
The Wind vs. Flood Problem
The most contested application of ACC occurs during hurricanes. Standard homeowner's policies cover wind but exclude flood. When a hurricane drives both wind damage and storm surge (flood) into a home, the ACC clause allows the carrier to argue that since both causes acted together, nothing is covered. Homeowners who do not carry separate flood insurance can be left with no coverage at all. Several states have challenged or limited ACC clauses through legislation, but they remain enforceable in many jurisdictions.
Relevance to Restoration Contractors
Contractors working in hurricane-prone markets need to understand ACC because it directly affects claim outcomes and payment. When documenting damage after a hurricane or major storm, separating wind damage from water damage with clear photographs, measurements, and water line documentation is critical. If the damage from each cause can be isolated and quantified independently, the argument for covering the wind portion becomes stronger even in the face of an ACC clause. Detailed documentation is the best defense.
Frequently asked questions
An anti-concurrent causation (ACC) clause states that when a covered peril and an excluded peril act together to cause damage, the entire loss is excluded from coverage. The most common example is wind and flood acting together during a hurricane. Even though wind is covered, if flood (excluded on a standard homeowner's policy) contributed to the damage, the ACC clause allows the carrier to deny the combined loss.
During hurricanes, wind and storm surge often cause damage simultaneously. Under an ACC clause, the carrier can deny the entire claim by arguing that excluded flood damage occurred concurrently with covered wind damage. This has been one of the most litigated insurance provisions in hurricane-prone states.
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