The Death of the Concurrent Cause Doctrine in Florida Homeowners Insurance Claims under Sebo v. American Home Assurance

cover3

In a monumental September 18, 2013 holding, Florida’s Second DCA in Sebo v. American Home Assurance ruled that there should have never been a concurrent cause doctrine in Florida, and that the other DCAs have been mistaken for years.  Here is the full opinion:

Download (PDF, 58KB)

As background, many cases involve damage being caused by a combination of excluded and covered perils.  For years, when this occurred, courts would look at the facts and the policy to determine if the combination was dependent or independent of each other and whether the policy terms disposed of the concurrent cause doctrine.  If courts determined that the causes were independent and the policy did not “write out” the concurrent cause doctrine, then it wouldn’t matter if the excluded peril caused 99% of the damage, the damage was still covered so long as the covered peril caused at least 1%.  If the causes were dependent or if the policy had an anti-concurrent cause clause, then the question would be which peril was the efficient proximate cause of the damage – the excluded peril or the covered peril.  (I think I got that right … ).

This gave lawyers and drafters a lot to think about, but the Second DCA says that those exercises were a waste of time.  In any cases involving an excluded and covered peril causing damage together, the efficient proximate cause doctrine should apply.  This not only marks a major swing in the law; it is also at least a major swing in this case. The jury awarded Sebo roughly $7.7M.

Here is the verdict form from the trial court:

Download (PDF, 109KB)

Here is a photograph of this unbelievably amazing house:

 photo from http://www.naplesnews.com/photos/2007/jul/01/38552/

There’s something to think about this weekend.  I am going to think about what this means for sinkhole claims.  Feel free to email me your thoughts.  I hope you have a good weekend.

Takeaway:

This is such an important issue; however, I don’t think most insurers have implemented processes and procedures to take advantage of their rights under this holding.

The Sebo case calls for a whole new set of checklists and guides for handling cases in the Second DCA, and maybe even in Florida.  If you want to know more, please message me.


Did this Article Answer Your Homeowners Insurance Question?

If not, then contact us.