72 Hours Clause – Property
The 72 Hours Clause defines a 72-hour window for windstorm, earthquake or similar natural perils within which multiple individual losses are treated as a single occurrence for the purposes of the deductible and the maximum indemnity.
- Clause type
- Definition
- Origin/Market
- London Market (LMA/NMA/Lloyd’s)
- Favours
- Insurer
- Negotiability
- Negotiable
Purpose
Natural events such as storm series or earthquake swarms can unfold over several days, repeatedly causing damage to the same or several insured properties during that time. Without a clear event definition, it would be disputed whether each individual loss attracts a separate deductible or whether multiple losses are aggregated into a single occurrence. The 72 Hours Clause provides a fixed, time-limited definition for this purpose.
Effect and limits
Within a continuous 72-hour window that the policyholder may choose to start freely, all losses arising from the same natural peril are treated as a single occurrence; only one deductible applies and total indemnity remains capped at the agreed limit per occurrence. If a natural event lasts longer than 72 hours, the policyholder must fix the start of a new window, so that any additional losses may attract a further deductible. For other perils such as flood, a longer window (commonly 168 hours) is often agreed, since such events develop more slowly.
Negotiation and practice
The policyholder’s freedom to choose the start of the window is a significant advantage during multi-day storm series, but should be documented promptly after the event. For international property programmes, it is worth checking whether the window length is consistent with the insurer’s reinsurance structure (compare the hours clause used in the reinsurance treaty), since a mismatch can create gaps between primary and reinsurance cover.