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Everything to Know about Act of God Insurance

Act of God Insurance

An “act of God” in insurance terminology refers to damages caused by events that humans otherwise can’t control, especially natural disasters. Because they are often hard to predict, and damage truly depends on the severity regardless of preparation, there is no one to blame for it other than the man in the sky. Homeowners’ and car insurance policies often have what damages it covers and what it doesn’t. Those excluded are typically damages caused by any of the following natural disasters.

What an Act of God is in Insurance Coverage

What qualifies as an act of God in the insurance business is an unexpected and uncontrollable natural disaster that occurs based on geography. These disasters are typically uncovered by insurance providers:

  • Hail (in some cases)
  • Earthquakes
  • Hurricanes
  • Lighting Damage
  • Tsunamis
  • Twisters

The average homeowner’s and car insurance policies will exclude coverage for damages caused by disasters such as these –thus making them a legal act of God that couldn’t have been avoided, unlike a car accident or a break-in at home. While your policy may not use the exact wording of “act of God,” uninsured damages or excluded damages are terms that are used interchangeably.

Car Insurance Policy And Acts of God

When it comes to more specific types of damage like that caused by weather conditions and some degree of unexpected events, car insurance has a handy coverage known as comphrensive coverage. This car insurance covers any damage that occurs to the vehicle when it’s parked or not in use. It will usually account for damage caused by weather conditions and criminal activity. Falling objects like tree branches are especially covered if they fall on your car during a storm or anything of that nature.

Much like any other insurance policy, a car insurance policy, full or basic, will list exclusions to the damages that they will cover. These exclusions will typically include acts of Gods such as earthquakes, flooding, and all of the aforementioned hazards. Specialized coverage may be required in order to insure yourself against such damages if they are known to be in your area.

Homeowners’ Insurance Policy And Acts of God

Similarly to your car insurance policy, your homeowners’ insurance, or property insurance, will also list exclusions of damage that they will not cover. This will usually include all the aforementioned acts of God. Based on where you live, there may be specialized acts of God coverage you can add to your home policy, like wildfire coverage in California, hurricane coverage in Louisana, and earthquake coverage in landlocked states. Property insurance types differ from location to location based on the average natural event that occurs.

Can You Buy Such Coverage For Acts of God?

There is no insurance product labeled as “act of God coverage,” as the add-on specialized hazard insurance is usually for one specific instance. Whether or not they are even sold depends on the insurance company and their selection of products. This goes for both your auto and homeowners’ insurance.

If you lease your car, then the lienholder may require you to carry comprehensive coverage until the amount is fully paid off. Again, be sure to consult the policy to see what hazards and damages are covered. When it comes down to it, the most important natural disaster coverages you can have are flood and earthquake insurance. The typical car insurance policy only covers water damage from within the vehicle and not outside, while earthquake damages can be intense whether or not the car is properly stored. There are some things that comprehensive coverage just will not insure, and it helps to be aware of such acts of nature.

Updated: November 2023

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