What Does Vis Major Mean?
Vis major is Latin for "act of God." In insurance, it refers to events that can be considered exclusions in a contract because they are not preventable and cannot be foreseen. These may include natural disasters like earthquakes or tornadoes.
Insuranceopedia Explains Vis Major
Earthquakes and tornadoes are events that cannot be stopped by human effort. They cost properties and human lives. In the world of insurance, however, the damages caused by these natural events are often not covered and are often cited as exclusions in insurance policies. Thus, when a person's house is destroyed by an earthquake, he or she has to rebuild it himself or herself using her own money and without the help of an insurer even if that house is covered by a policy.
So, to prevent a financial problem should a vis major happens, the policyholder can avail of a specific policy clause that will cover for it. He or she will pay extra for this clause.