By SPJ Adjusting Services | Insurance Appraisal Experts
Hidden Dangers of the Anti-Concurrent Causation Clause in Windstorm Claims – El Paso, TX
When fierce windstorms hit El Paso, TX, many commercial property owners assume that their insurance coverage has them protected. Unfortunately, the reality can be far more complicated. One small clause buried deep in your policy-the Anti-Concurrent Causation (ACC) clause can be the deciding factor between full compensation and total denial of your claim.
In one recent case, an El Paso commercial property owner learned it the hard way. The insurer denied the owner’s valid windstorm claim based on ACC language combined with a “no ensuing loss” argument-a one-two punch that completely eliminated the coverage.
What is an Anti-Concurrent Causation (ACC) Clause?
Under the ACC clause, an insurer will have the right to deny the claim if there is a combination of covered and excluded perils such as wind, wear and tear, or construction defects all playing a major role in causing damage.
Example:
If a strong windstorm damages your roof but the insurer finds pre-existing structural weakness or water intrusion, they may deny the entire claim because both perils “acted concurrently.”
In short, if an loss is caused-even partially-by more than one factor, then the insurer can, on legal grounds, refuse to pay.
The “No Ensuing Loss” Argument Explained
Insurers often double down by invoking the no ensuing loss provision. In other words, the provision provides that even when an excluded peril-like faulty construction-causes a covered peril-like wind damage-insurers can deny payment unless the resulting loss is completely separate from the excluded event.
In El Paso, the insurer claimed that water intrusion and structural damage arose out of the same chain of damage, which was initially triggered by an excluded cause. Even the apparent wind damage thus became non-payable.
This tactic can leave commercial policyholders footing enormous repair bills despite having valid insurance coverage.
Why This Matters for El Paso Commercial Property Owners
Windstorms are common in West Texas, and so are complex insurance disputes following them. The ACC clause is one of the most powerful tools that insurers use to avoid payouts.
ACC clauses are commonly triggered in the following scenarios:
Wind + pre-existing structural weakness
wind + construction defect
Wind + water intrusion or flood
Multiple causes happening in a limited time
Unless adequately challenged, these clauses can render your entire claim null and void, even when wind clearly played a significant role in the damage.
How Insurance Appraisers Help Policyholders Fight Back
SPJ Adjusting Services specializes in untangling complicated causation issues in commercial property claims. Our experienced appraisers can:
Separate covered and excluded damages through detailed inspections
Challenge improper or overbroad use of ACC language
Identify and document independent ensuing losses that are still payable.
Support your case through professional appraisal and advocacy
A well-documented appraisal can often be the difference between a denied claim and a fair settlement.
Pro Tip: Review Your Policy Before Disaster Strikes
Consider an anti-concurrent causation clause in your commercial insurance policy as a red flag. Have it reviewed by a professional before a storm hits. Knowing how this clause works can save you from many financial surprises when filing a claim.
Real-World Impact: How ACC Clauses Affect Businesses
Indeed, a study from the Insurance Information Institute estimated that more than 60% of disputed commercial windstorm claims involve concurrent causation issues. Insurers use such clauses to limit payouts even when wind, generally a covered peril, is considered the principal cause of the damage.
This makes professional representation more important than ever to ensure that business owners’ policy benefits are fully honored.
FAQs: Anti-Concurrent Causation Clauses
Q1: Can an ACC clause be negotiated or removed from a policy?
Not always. Insurers sometimes have standard language in regards to ACC clauses; however, a well-informed agent or public adjuster can counsel you about your options and/or recommend better coverage.
Q2: What should I do if my claim is denied under an ACC clause?
Contact a licensed public adjuster or insurance appraiser immediately. They can review your denial letter, inspect the property, and help you challenge unfair decisions.
Final Takeaway
One of the most misunderstood yet most dangerous provisions in commercial insurance policies is the Anti-Concurrent Causation clause. To the business owners of El Paso, understanding and challenging it may mean the difference between losing everything and making a fair recovery.
At SPJ Adjusting Services, we’re here to defend your rights as a policyholder and ensure your claim receives the attention and compensation it deserves.
Contact SPJ Adjusting Services Today
Has your commercial windstorm claim been denied under an ACC clause?
We can help you fight back.
