Concurrent Causation


  • When one of the causes of a loss is insured by an insurance policy but another cause is not, the insurance theory of concurrent causation states that unless otherwise stipulated in the insurance contract, the insurer is legally obligated to cover the damages. For example, an insurance policy may not cover damages from earthquakes, but if a fire is caused due to the earthquake, the resulting property damage may still be covered, depending on the terms of the property insurance policy.

simultaneous cause and effect, circumstantial causation

Related Terms and Acronyms

  • Concurrent Insurance Definition,
    • Multiple insurance policies that cover the same exposure.
  • Hazard Insurance Definition,
    • Insurance that covers hazards that are considered risky enough not to be covered by a standard insurance policy.
  • Loss Settlement Amount Definition,
    • The percentage of damages an insurer is contractually obligated to pay for after a claim.
  • Named Perils Insurance Policy Definition,
    • Insurance that only provides coverage in the event of a loss from a peril specifically named in the insurance policy.
  • Peril Definition,
    • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
  • Uninsurable Peril Definition,
    • Something that cannot be insured due to a high risk of loss.
  • Waiver of Subrogation (WOS) Acronym,
    • A provision that prevents an insurer from pursuing a third party for damages to insured property.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage