What Is an Act of God?

An "act of God" is a natural disaster that cannot be avoided. This term encompasses floods, earthquakes, tornadoes, and other natural disasters and is frequently used in insurance policies.

When a natural disaster strikes, you may wonder if your homeowner's insurance policy will cover the damage. While many natural phenomena, such as lightning and hailstorms, are covered by standard insurance policies, some perils are not. Let's take a look at some common classified acts of God and how insurance companies handle them to ensure you have the coverage you need.

Definition and Examples of an Act of God

Catastrophic events can occur when natural disasters that are not caused by humans strike. These kinds of destructive forces are referred to as "acts of God." The following are examples of common phenomena classified as acts of God:

• Flood
• Tornado
• Lightning
• Hailstorm
• Earthquake
• Fire (if caused by lightning or another natural force)
• Volcanic eruption
• Tsunami

Acts of God ("force majeure") are frequently used in business contracts to describe unstoppable events (war, riots, natural disasters) beyond any party's control that make normal business operations difficult or impossible. A force majeure clause may release a company from liability if it fails to meet contract requirements due to an act of God.

• Alternate name: Force majeure (French for “superior force”)

A forest fire, for example, caused by a carelessly tossed cigarette is not an act of God; it is an act of humanity. A raging wildfire, on the other hand, is a natural disaster and is considered an act of God.

How an Act of God in Insurance Works

The standard homeowners insurance policy covers many acts of God. In most cases, your policy will specify which acts of God are and are not covered.

• Examine your insurance policies on a regular basis. If you have any questions about any of the clauses, contact your insurance agent. You don't want to discover the hard way that your insurance policy does not cover something.

An HO-3, also known as a "Special Form," is the most common type of homeowners insurance policy. It usually covers damage to your personal belongings, home, and other structures caused by one of 16 named perils. It also covers damage to your home and other structures (but not personal property) caused by other perils not specifically excluded in the policy. Lighting strikes are among the occurrences on the list of named perils. That means if lightning strikes a nearby tree, igniting both the tree and your home, you'll almost certainly have a covered claim.

Which Acts of God Are Covered by Insurance?

Here are some examples of common acts of God and whether or not they are typically covered by standard homeowners insurance policies.

Wildfires

Wildfires are typically covered by homeowners insurance. However, if you live in an area prone to wildfires, you may need to purchase additional coverage. Your agent can assist you in comprehending the terms and conditions of your policy.

Volcanic Eruptions

Volcanic eruptions can cause a variety of problems. Along with smoke, ash, and lava flows, the blast frequently causes earthquakes. Volcanic eruptions are typically listed as a covered peril by most insurance companies. However, unless you have additional coverage through earthquake insurance, any earthquake damage is not covered.

Earthquakes

Most standard home insurance policies exclude earthquake coverage. If you live in an earthquake-prone area, take the time to learn about the additional insurance coverage you can purchase.

Tornadoes

Twisters bring with them a lot of wind and, in some cases, hail. While many insurance policies cover windstorms, if severe wind-related weather conditions occur frequently in your area, you may need to purchase additional coverage.

• Consider the natural disasters that occur frequently in your area. Is your homeowners insurance policy going to cover these occurrences? If not, speak with your agent about what additional policies you can or should obtain.

Floods

Most insurance policies exclude floods and flood damage, even if they are an indirect result of a covered act of God. Hurricanes, for example, can cause wind damage and flooding. Your insurance policy most likely covers wind damage but not flooding caused by a storm surge (unless you have additional coverage in place).

Tsunamis

Tsunamis can cause flood damage because they bring large amounts of water ashore. If you live near bodies of water that have been affected by tsunamis, you should consider purchasing flood insurance. You should also consider earthquake insurance because earthquakes can cause tsunamis.

Lightning

Lightning strikes are frequently a covered hazard. You may be able to file a claim for power-surge damage caused by a lightning storm, depending on your policy.