Definition and Examples of an Act of God
When natural disasters not caused by humans strike, catastrophic events can ensue. These types of destructive forces are known as “acts of God.” Common phenomena classified as acts of God are:
Flood Tornado Lightning Hailstorm Earthquake Fire (if caused by lightning or another natural force) Volcanic eruption Tsunami
In business contracts, acts of God (“force majeure”) are often used 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 could absolve a business of liabilities if it didn’t fulfill its contract requirements because of an act of God.
Alternate name: Force majeure (French for “superior force”)
For example, a forest fire caused by a carelessly tossed cigarette isn’t an act of God—it’s an act of humankind. But a raging wildfire caused by lightning is a natural disaster and considered an act of God.
How an Act of God in Insurance Works
Many acts of God are covered by the standard homeowners insurance policy. In most cases, your policy will list any acts of God your policy will and won’t cover. The most common homeowners insurance policy is an HO-3, also known as a “Special Form.” It typically covers damage to your personal property, home, and other structures resulting from 16 named perils. It also covers damage to your home and other structures (not personal property) resulting from other perils that aren’t explicitly excluded in the policy. The named perils list contains occurrences such as lighting strikes. That means if lightning zaps a tree next to your home, setting the tree and your home on fire, you’d likely have a covered claim.
Which Acts of God Are Covered by Insurance?
Here’s a look at some common acts of God, and whether or not they’re typically covered in standard homeowners insurance policies.
Volcanic Eruptions
Volcanic eruptions can cause several different types of damage. In addition to smoke, ash, and lava flows, the blast often causes earthquakes. Most insurance companies list volcanic eruptions as a peril that’s covered. However, any earthquake damage isn’t covered unless you have additional coverage through earthquake insurance.
Earthquakes
Most standard home insurance policies don’t cover earthquakes. If you live in an area where earthquakes are common, take time to learn about the additional insurance coverage you can purchase.
Tornadoes
Twisters bring lots of wind and in some cases, hail. While many insurance plans cover windstorms, you may need to purchase additional coverage if severe wind-related weather conditions often hit your area.
Floods
Floods and flood damage aren’t covered by most insurance policies, even if they’re an indirect result of a covered act of God. For instance, hurricanes can cause wind damage and generate flooding. Your policy likely covers the damage from the hurricane’s wind but not the flooding resulting from a storm surge (unless you have additional coverage in place).
Tsunamis
Since tsunamis bring large volumes of water ashore, they can cause flood damage. If you live near bodies of water affected by tsunamis, it’s a good idea to purchase flood insurance. You might also consider adding earthquake insurance since earthquakes cause some tsunamis.
Lightning
Lightning strikes are often a covered peril. Depending on your policy, you may be able to file a claim for power-surge damages done during a lightning storm.
