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Hurricane Florence storm surge is probably not lined by insurance coverage

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A little bit-known insurance coverage clause might spell bother for a lot of residents in North and South Carolina, the place a storm surge of as much as 14 toes is anticipated as Hurricane Florence sweeps by way of, in accordance with a report.

As a results of the “anti-concurrent causation clause,” many individuals might quickly uncover that their insurance policies don’t cowl harm from the tidal water pushed by excessive winds, CBS News reported.

“The vast majority of homeowner insurance policies have this exclusion,” stated Amy Bach, head of United Policyholders, a San Francisco-based shopper insurance coverage advocacy group.

She predicted that the clause will “put policyholders in a fight with their insurers right from the get-go.”

According to the clause, if two occasions — like wind and water harm — happen shut collectively however solely considered one of them is roofed, the insurer doesn’t should pay for both one.

“If two separate events occur, such as wind and flood, and cause damage within a short period of time, but only one is insured, then the order in which it occurred is irrelevant, and your insurer will not pay for either one,” Robert Hunter, director of the Consumer Federation of America, advised CBS.

This is true even when harm from the wind is tallied at $100,000 and the flood loss is just $5,000, he added.

Forecasters predict that Florence’s storm surge might trigger extra harm than its winds, significantly if the storm hugs the shoreline and veers southward into Georgia.

But some within the insurance coverage business consider the clause is not going to be problematic.

Portions of a dock destroyed by Hurricane Florence in Atlantic Beach, North Carolina.
Portions of a dock destroyed by Hurricane Florence in Atlantic Beach, North Carolina.Getty Images

“Anti-concurrent causation wording generally will have no bearing on a major portion of the damages,” main insurance coverage dealer Willis Towers Watson stated in an announcement.

The clause is “causing a great deal of confusion for consumers,” stated Clearsurance CEO Michael Crowe. “In conditions the place it’s included in a policyholder’s contract, usually customers merely aren’t conscious.

“Insurance policies are full of legal, technical jargon that makes them difficult to read, and so many consumers may not understand what this clause means for their coverage,” he stated.