Does Insurance Cover Acts of God? Coverage & Exclusions

What is an Act of God in Insurance

An “Act of God” refers to an event stemming from natural causes without human intervention, which could not have been prevented by reasonable foresight or care. These events are typically unpredictable and unavoidable. While the term may suggest a religious connotation, within the insurance industry, it strictly denotes natural phenomena.

Examples include floods, earthquakes, hurricanes, tornadoes, lightning strikes, and volcanic eruptions. The absence of human contribution or foreseeability is the defining characteristic of an event classified as an “Act of God” for insurance purposes.

Insurance Coverage for Natural Events

Standard insurance policies often provide coverage for specific natural events, even those considered “Acts of God.” The scope of this protection depends on the type of policy and the perils explicitly listed within the policy documents. Understanding these listed perils is important for policyholders.

Homeowners insurance policies, for example, commonly cover damage resulting from windstorms, hail, lightning, and fire. If a tree falls on your home due to a storm, this damage is typically covered under a standard homeowners policy. Similarly, damage from a fire, regardless of its natural origin, is usually included.

For vehicle owners, comprehensive auto insurance generally protects against damage from various natural occurrences. This can include damage caused by hail, floods, wind, and falling objects such as trees or branches. Business property insurance policies often mirror homeowners coverage, extending protection to commercial structures and their contents from similar natural perils.

Common Exclusions in Policies

Despite coverage for some natural events, many standard insurance policies contain specific exclusions for others. These exclusions mean that certain types of damage, even if caused by an “Act of God,” are not covered unless a separate policy or endorsement is purchased. Policyholders often need to consider additional coverage options based on their geographic location and potential risks.

Flood damage is a widespread exclusion in standard homeowners and business policies. Floods are typically defined as rising water from outside the property, and damage from such events requires a separate flood insurance policy, often available through the National Flood Insurance Program (NFIP) or private insurers. Similarly, earthquake damage is frequently excluded from standard policies, necessitating a distinct earthquake insurance policy or an endorsement added to an existing one.

Exclusions also commonly apply to various forms of ground movement, such as landslides, mudslides, and sinkholes, unless these are a direct result of a covered peril. Furthermore, damage from mold or fungus is often excluded if it results from a long-term, unresolved moisture problem, even if an initial natural event contributed to the moisture. While not natural events, catastrophic occurrences like war or nuclear incidents are also broadly excluded from most insurance policies.

Making a Claim After a Natural Event

When damage occurs following a natural event, prioritizing safety is the first step before assessing any property damage. Once the immediate danger has passed, documenting the damage extensively becomes important for the insurance claim process. This includes taking clear photographs and videos of all damaged areas and items before any cleanup or repairs begin.

Creating a detailed list of all damaged or destroyed property, along with any relevant receipts or proof of ownership, can help support your claim. Keep records of any temporary repairs made to prevent further damage, and retain receipts for any additional living expenses incurred if you are displaced from your home. Promptly contacting your insurance provider to initiate the claim is essential, typically within a few days or weeks of the event, as outlined in your policy.

Cooperate fully with the insurance adjuster assigned to your claim, providing them access to the damaged property and any requested documentation. The adjuster will evaluate the damage and determine the covered losses. Maintaining a detailed log of all communications with your insurer, including dates, times, names of representatives, and summaries of discussions, can be beneficial throughout the claims process.