What does it mean when two perils are described as interdependent in an insurance context?

When two perils are described as interdependent in an insurance context, it means that they combine in such a way that they produce a loss, but if considered individually, neither peril would result in a loss. This concept is significant in understanding how different risks can interact and culminate in a specific event leading to damages or claims.

In this scenario, the relationship between the two perils is crucial because it highlights the complexity involved in assessing losses and liabilities. If one peril is present on its own, it may not trigger coverage because the resulting damage is insufficient or nonexistent. However, when both perils occur together, they enhance the risk and lead to a consequential outcome that justifies a claim under the insurance policy.

For instance, imagine a situation where a flood and a landslide occur simultaneously—if assessed separately, the flood might not cause significant harm alone, nor might the landslide. However, together they can combine to create a situation that leads to severe damage, thus making their interdependence essential in understanding the overall risk and the corresponding coverage under the insurance policy.