Insurance Coverage Q&A: Efficient Proximate Cause and Policy Dates
What happens when exposure to the peril is during the policy period, but the damage doesn't occur until after the policy lapses?
October 24, 2022 at 06:06 AM
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This is a simple question regarding the date of loss. Policy in force: 08/06/2020 – 08/06/2021 *Wildfire occurred in September 2020 which created a burn scar just above the insured location. No damage from the actual fire. On 09/14/2022 there is a landslide/mudflow which caused significant damage to the dwelling. The policy was not in force on the date of the landslide/mudflow (policy cancelled 08/06/2022 for non-payment). We have already established the proximate cause is fire (wildfire from September 2020). If we use the date of the mudflow (actual inception of damage) there is no policy in force. If we use the date of the wildfire there would be coverage as it is within the policy period. Which is the proper way to proceed?
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