Concurrent Causes of Loss Discussed in Recent Case

Originally published by Brandee Bower.

When multiple events cause damage, is there coverage? If language in the policy addresses concurrent causes of loss, then that language usually answers the question. If the policy is ambiguous, then look to case law. This was recently discussed in Salem United Methodist Church of Cedar Rapids, Iowa v. Church Mutual Insurance Company.1
Through Church Mutual, Salem had property insurance, but not flood insurance. In 2008, a nearby river overflowed its banks and flooded the City of Cedar Rapids, Iowa. Salem suffered a sewer backup and filed a claim with Church Mutual. The claim was denied so Salem filed suit. The case recently went to trial and a jury found in favor of Salem. A special verdict form was used whereby jurors were asked to answer specific questions about the case.

The district court concluded “that if a covered peril combines with any other peril to cause the loss, there is coverage for the loss. The jury’s answers do not require speculation on the part of the Court,…

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