The Mississipppi Supreme Court ruled in a 9-0 landmark decision that “all-risk” home insurance policies may cover wind damage from hurricanes even where the loss is later exacerbated by water damage from storm surge. Insurers had argued that such damage is excluded by the anti-concurrent cause (ACC) in their policies. The Court decided that the ACC Clause in not applicable because the wind and water losses were separate or in sequence, and not “indivisible.” Justice Randolph wrote in part, “… An insurer may not abrogate its duty to idemnify for such loss by the occurrence of a subsequent, excluded cause or event.” In effect, once the wind loss occurs, the insured is entitled to the policy coverage and the burden is shifted to the insurer to prove what part of the loss was caused by the excluded peril, like water. Unfortunately, thousands have already negotiated their Katrina claims for less than the value of their losses.
http://www.insurancejournal.com/news/national/2009/10/09/104428.htm
