“Act of God” is a common term in the insurance world. However, it may not be clear to you what it means. When you own a car, a business, or a home, it is natural for you to take certain steps to protect your assets. Understanding the term “Act of God” can help you better protect yourself with the proper insurance coverage.

What does “Act of God” mean?

An event that is considered unpreventable is considered to be an act of God.

What types of events qualify as an act of God?

Windstorms, lightning strikes, hail storms, wildfires, hurricanes, tornadoes, floods, and earthquakes. It is important to note that not all acts of God may be covered in a typical insurance policy. Call us to speak with one of our insurance professionals if you have questions about this.

Does auto insurance cover acts of God?

Your auto insurance policy will cover acts of God if you obtain what is known as comprehensive coverage. This coverage includes protection against natural disasters and other types of damage not caused by a collision. For instance, if your car is vandalized or an animal runs out in front of you, comprehensive coverage would help you cover the costs to repair your vehicle or cover you for a total loss.

What about home insurance?

A typical homeowners insurance policy usually covers some acts of God. Two exceptions to this are flooding and earthquakes. If you live in a flood zone area or one that is prone to earthquakes, you will want to obtain flood insurance for floods or a separate coverage for natural disasters.

Is an act of God the same thing as force majeure?

While these two terms are similar, force majeure is more commonly used in business and construction contracts. It refers to circumstances deemed unforeseeable that would prevent a contract from being fulfilled.

If you have any questions about acts of God, call us at (301) 948-2010. We will be happy to help you!