Let’s face it a disaster can and often does happen when we least expect it to. Most times, the disasters we are struck by are out of human control, and thus they are referred to as an Act of God. The Act of God by the insurance industry is described as an accident or unfortunate event resulting from natural causes without human intervention. If anything, this type of accident was unpreventable regardless of if there was foresight or special cautions observed.
Insurance companies categorize floods, earthquakes, etc., as an Act of God. In addition, fire too can be an Act of God if a lightning strike causes it. However, if the unfortunate event was caused by human activity like bad wiring or someone lighting a cigarette indoors, it will not be considered an Act of God.
You can learn more about the Act of God loss by speaking to your insurer or insurance agent. However, familiarize yourself with the terms outlined by your insurer.
How Acts of God Are Covered By Homeowners Insurance?
Today, many of the standard homeowner’s insurance policies will cover natural disasters, including tornados, hurricanes, lightning storms, and flooding. The Act of God event may not be covered by standard homeowners’ policies. However, a separate insurance policy will need to be purchased. For instance, flood insurance can be purchased; you can also buy earthquake coverage for your homeowner’s policy.
You need to remember that most homeowners insurance will cover an act of God. It is always a good idea to check your policy to ensure that it has enough property insurance and that all the other structures on your property are covered.
Act of God insurance coverage will generally cover lightning, strong winds, and other elements that do damage to your home. The Act of God Clause is what will protect you. That means you are covered if the damage is done by hurricanes, lightning storms, and wildfires.
Is there a difference between the Act of God and Force Majeure?
Generally, the Act of God will include acts of nature, and that’s where it will be restricted to. Force Majeure, on the other hand, includes both natural acts and those of extraordinary circumstances mainly a result of human intervention. For instance, force majeure will be the disease outbreak, war, government lockdown, etc.
When acquiring insurance, it is worth making sure that it covers the Act of God. Whether it is a vehicle, business, or home insurance, you want to be covered against what isn’t in your control. That way, when disaster strikes, and if often does when you least expect it, you are covered, preventing extensive financial ruin.