July 6, 2006
Some insurers saw each hurricane as a series of wholly separate and unrelated events. One event was wind. Another was rain. Still others were high water, waves, storm surges
and so on. By parsing hurricanes into the smallest possible parts, insurers can find grounds for denying coverage. Sometimes, this approach enables insurance companies to deny coverage for the entirety of a claim. Other times, this approach enables them to deny coverage for various parts of a claim—after first placing the burden on policyholders to prove which parts are covered.