Does Homeowners Insurance Cover Acts of God?

Homeowners often wonder if their insurance covers “Acts of God,” a term frequently used to describe natural disasters. While this phrase is common, insurance policies do not typically use “Act of God.” Instead, they refer to specific events as “perils” that are either covered or excluded. Understanding how various natural events are addressed by a standard homeowners policy can help clarify coverage expectations.

Understanding Natural Disasters in Homeowners Insurance

Insurance policies categorize natural events as “perils,” which are unforeseen, damaging incidents. Homeowners insurance policies are either “named peril” or “open peril” (also known as “all risk” or “all peril”) policies. A named peril policy specifically lists the events it covers; if a peril is not on that list, it is not covered. Conversely, an open peril policy covers any event that causes damage unless that specific peril is explicitly excluded.

The distinction between these policy types is important. With a named peril policy, the homeowner must prove the damage resulted from one of the listed perils for coverage. For an open peril policy, the insurer generally covers the loss unless caused by an excluded event. While an open peril policy offers broader protection, it typically comes at a higher premium than a named peril policy.

Natural Disasters Typically Covered

Standard homeowners insurance policies cover damage from common natural events. Windstorms and hail are typically covered, including damage to roofs and siding from strong winds, tornadoes, and hurricanes. However, some policies may have separate, higher deductibles for wind or hail damage, particularly in areas prone to such events. Lightning strikes and the resulting damage to homes and personal property are also usually covered.

Fire and smoke damage, including from wildfires, are commonly covered perils. This coverage typically extends to the dwelling’s structure, unattached structures like garages, and personal belongings. Accidental fires, such as those caused by cooking mishaps or electrical issues, are also generally included. Damage from the weight of ice, snow, or sleet, which can lead to collapsed roofs, is another peril often covered by standard policies.

Natural Disasters Requiring Separate Coverage

Certain natural events are almost universally excluded from standard homeowners insurance policies due to their widespread and catastrophic potential. Flood damage is a primary exclusion, requiring a separate flood insurance policy, often available through the National Flood Insurance Program (NFIP). This separate coverage is important, as even minor water intrusion can cause extensive damage. Flood insurance may also cover some types of earth movement, such as mudflows, if directly caused by flooding.

Earthquakes and other earth movements, including landslides and mudslides, are typically not covered by standard homeowners insurance. These perils require purchasing a separate earthquake policy or a “Difference in Conditions” (DIC) policy, which can bundle coverage for perils like landslides, mudflows, earthquakes, and sometimes floods. Insurers generally exclude these events due to high risk and potential for widespread damage across large geographical areas. Such specialized policies can be more expensive, especially in high-risk zones, and may have percentage-based deductibles, meaning a portion of the home’s insured value is the homeowner’s responsibility.

Checking Your Policy and Making a Claim

Homeowners should review their insurance policy documents to understand specific coverages, limits, and exclusions. The declarations page provides an overview of coverage amounts, while the exclusions section details what is not covered. It is important to know the dwelling coverage limit, which is the maximum amount the insurer will pay to rebuild, and personal property limits, often set as a percentage of dwelling coverage. High-value items like jewelry or collectibles may have specific sub-limits, potentially requiring additional endorsements for full protection.

If a natural disaster causes damage, promptly documenting it is important. This involves taking extensive photographs and videos from various angles, creating a detailed inventory of damaged items with descriptions and values, and retaining receipts for repairs or temporary living expenses. After documenting, homeowners should contact their insurer as soon as possible to report the damage and initiate the claims process. Maintaining a detailed log of all communications with the insurance company, including dates and times, is beneficial throughout the claim resolution process.