Insurance Explained: "Acts of God"

“Act of God” is a commonly used insurance term, but you may not know exactly what it means. When it comes to weather and other unpreventable events, it’s important to understand acts of God so you can protect your property by making sure you have the right insurance coverage.

Keep reading to learn what an act of God is, the types of events that qualify and how it all factors into home and auto insurance policies.
 
What does “act of God” mean?

Simply put, an act of God (in property and car insurance policy terms) refers to events, such as extreme weather, that are out of your control.

If it’s something you can’t prevent, it’s likely an act of God.

What types of events qualify as an act of God?

Examples of acts of God include windstorms, lightning strikes, hail storms, wildfires, hurricanes, tornadoes, floods and earthquakes. However, not every act of God is included in a standard insurance policy. You may need additional coverage.

Does auto insurance cover acts of God?  

Car insurance will cover acts of God if you sign up for comprehensive coverage. This type of auto insurance covers natural disasters as well as other types of damage not caused by a collision. For example, if your car is vandalized or an animal runs out in front of you, comprehensive coverage can help you pay for repairs or a total loss.

What about home insurance?

A standard homeowners policy usually covers some acts of God. Flooding and earthquakes are two common exceptions. If you live in a flood zone or an area prone to earthquakes, you’ll need separate coverage for those natural disasters.

Is an act of God the same as a force majeure?

The two terms are similar; however, the term force majeure is more commonly used in business and construction contracts. It refers to unforeseeable circumstances that prevent a contract from being fulfilled.

Have questions about your insurance coverage for acts of God? Just reach out, and we’ll be happy to help.