What Is an Act of God in Insurance?

The term “Act of God” in insurance refers to events stemming from natural forces, beyond human control or foresight. These occurrences can lead to significant property damage, raising questions about insurance coverage. Understanding what constitutes an “Act of God” and how it intersects with various insurance policies is important for individuals and businesses seeking financial protection.

Defining an Act of God in Insurance

An “Act of God” in insurance describes an event originating solely from natural causes, without human intervention or negligence. These events are unforeseeable and unpreventable, meaning no human foresight or reasonable care could have averted the damage. This classification emphasizes that human action played no role in the cause. Examples include sudden severe weather phenomena such as lightning strikes, tornadoes, or hailstorms. A fire caused by a lightning strike, for instance, would be an “Act of God,” while a fire from faulty wiring would not. (12, 14)

Insurance Coverage for Natural Events

While “Act of God” is a classification of an event, it is not a specific type of insurance policy. Coverage for such natural occurrences depends on the specific perils, or causes of loss, that are explicitly named and covered within an individual insurance policy. (3, 12)

Homeowners insurance policies generally cover damage from many common natural events, including fire caused by lightning, windstorm damage, and hail. (8, 16, 22) For example, if high winds cause a tree to fall on a home, the resulting damage is typically covered under a standard homeowners policy. (12) However, the specific perils covered will vary, and policyholders should review their documents to understand what is included. (8)

Auto insurance policies, particularly those with comprehensive coverage, protect vehicles from damage caused by natural events. This can include damage from hail, falling objects like trees, and even floods. (13, 17, 20) Comprehensive coverage is designed for non-collision incidents. (13, 15)

Business insurance, specifically commercial property insurance, also covers damage to commercial structures and their contents from natural events, similar to homeowners policies. (9, 11) Businesses may also secure business interruption insurance, which provides coverage for lost income if operations are halted due to damage from a covered natural disaster. (2, 9)

Common Exclusions and Policy Limitations

Despite an event being classified as an “Act of God,” standard insurance policies often contain specific exclusions for certain natural occurrences. This means that even if an event is caused by natural forces, it might not be covered unless separate, specialized insurance or an endorsement is purchased. (4, 18)

Flood damage is a significant exclusion in nearly all standard homeowners and business property insurance policies. (10, 16, 38) To obtain coverage for losses due to flooding, property owners must secure a separate flood insurance policy, often through the National Flood Insurance Program (NFIP) or private insurers. (1, 27, 38) Flood insurance is frequently required for properties in high-risk flood areas with government-backed mortgages. (27, 30)

Earthquake damage is another common exclusion from standard homeowners and business policies. (10, 16, 32) Coverage for earthquakes typically requires a separate earthquake policy or an endorsement added to an existing policy. (24, 28, 34) Similarly, damage caused by landslides or mudslides is often excluded and may necessitate specialized coverage. (4, 18)

Even when a peril is covered, policies include deductibles. These are amounts a policyholder must pay out-of-pocket before insurance coverage begins. Policies also have limits, which cap the maximum payout for a claim. (10, 23)

Filing a Claim After a Natural Disaster

After damage from a natural disaster, prioritize personal safety. Once safe, promptly notify your insurance provider to initiate the claims process. (6, 26)

Document all damage thoroughly with photographs and videos before any cleanup or temporary repairs. (6, 29) Create a detailed list of damaged or lost property to assist the insurance adjuster. (6, 26) Take reasonable steps to prevent further damage, such as boarding up broken windows or tarping a damaged roof. Keep receipts for temporary repairs, as they may be reimbursable. (26, 29)