SDV Insights

Texas Supreme Court Rocks Policyholders Like a Hurricane


Texas policyholders should be aware of the recent decision in JAW The Pointe, LLC v. Lexington Insurance Company. In a case of first impression, the Texas Supreme Court held that anti-concurrent causation clauses – provisions which bar coverage for a loss caused by both a covered and excluded event – are enforceable in commercial property policies. The decision highlights the importance of policyholders: 1) recognizing the presence of such provisions, 2) talking with their insurer about the intended application, and 3) being proactive in disputes with their insurers by developing a narrative (regarding the cause of damage) that is most likely to result in a loss being covered.

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