subject: Natural Peril Exclusions - Storm - Part I [print this page] Storm is not usually excluded from ARPI policies. On the other hand, it is the interaction of the excluded and included perils which frequently causes the most difficulty in deciding the proximate cause of a particular loss. This is clearly demonstrated by the case of Oddy v. Phoenix Assurance Company Limited [1966] 1 Lloyd's Rep 134.
The assured had purchased a plot of land surrounded by a 12-foot high retaining wall. In 1961 cracks had appeared in the wall and the houseowner's occupier's insurance had then been purchased. The policy covered a bungalow (which had been built on the plot of land) against loss or damage caused by storm or tempest, but excluded damage caused by flood, subsidence or landslip. It covered against loss or damage caused by storm or tempest or flood. In the early part of November 1963, there had been heavy rain and high winds but no damage occurred. However, on 19 November, the wind had dropped and the rain ceased by 11 a.m. At 1.40 p.m. the top of the wall collapsed and, shortly afterwards, the whole wall collapsed onto the assured's bungalow. The assured claimed under the household policy.
The insurers argued that the cause of the damage was not the storm, but the fact that the wall itself was poorly constructed.
The court found there had indeed been heavy rain and that in the early part of the month there had been considerably high winds. Apparently, it was the percolation of water into the wall which caused it to collapse internally. The court was required to decide whether or not the collapse had occurred because of the storm or tempest or flood. First, it decided that a flood had not occurred and that tempest only meant a severe storm. Therefore, the operative word was "storm", and the court held that to him the word "storm" meant some violent wind, usually accompanied by rain, hail or snow. It further decided that the word "storm" did not mean persistent bad weather, nor did it mean heavy rain or persistent rain by itself.
