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Vol. 4, Iss.5
May 20, 2015

Texas Supreme Court Blows Away Coverage For Hurricanes
Coverage for hurricanes was all the talk in the few years following Katrina. Much of the action focused on Louisiana and Mississippi law. The topic has been relatively quiet over the past few years. The main issue is this. Homeowner’s policies generally cover wind but not water damage. Hurricane damage can be a combination of both – especially in a coastal area. Following Katrina, where this was a significant issue, courts grappled with it. In particular, the issue turned on the interpretation of the anti-concurrent causation clause in a property policy. In a case of first impression, the Supreme of Texas took its turn at it in JAW the Pointe, LLC v. Lexington Insurance Co., No. 13-0711 (Tex. Apr. 24, 2015). In very general terms, the Texas high court, interpreting the anti-concurrent causation clause, held that no coverage was owed for otherwise covered wind damage from Hurricane Ike because the property damage at issue was also caused, either concurrently or in sequence, by flood. JAW the Pointe will fly under the radar for now. But if (when) there is a significant hurricane in Texas, especially near the Gulf Coast, it will have a huge impact in precluding coverage in many cases.


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