What’s an Act of God in Insurance?
You may be familiar with the phrase “act of God” from commercials or your own policy. But do you know exactly what it means?
Let’s explore the definition of “act of God” in this context, as well as how one of these events could impact you.
Q: What is an act of God?
A: This is an umbrella term that refers to an event that isn’t caused by humans and can’t be prevented by them. Natural disasters like floods, tornadoes and earthquakes are commonly referred to as “acts of God.”
Q: Do home and auto insurance cover acts of God?
A: Basic homeowners and auto insurance policies likely do not cover many acts of God.
Homeowners insurance covers some events, such as storms, under standard policies. On the other hand, damage caused by floods, hurricanes and earthquakes are typically not covered without additional coverage.
Auto insurance exclusions are similar. Your basic policy should cover accidents, but likely won’t cover damage resulting from natural disasters. You can get a comprehensive policy to remedy this.
If you want to update your coverage, we can explore more comprehensive options or separate policies with you.
Q: How do I know if I have the right coverage?
A: Your policy may not use the phrase “act of God.” Instead, look for “force majeure” clauses that describe coverage limitations and exclusions.
If you have more questions about your insurance, reach out today so we can help answer them.
