What Does Act of God Mean?
An act of God is an unpreventable natural event that causes serious damage, such as lightning, flood, or tornado. Many insurance policies have exclusions for acts of God. Moreover, which natural forces are defined as acts of God may vary from policy to policy. Policyholders can purchase riders to extend their property insurance coverage to certain acts of God.
An act of God may also be referred to as an act of nature.
Insuranceopedia Explains Act of God
The reason why acts of God are often excluded from standard property insurance policies is because they exceed what is considered a "standard risk" for the insurance company. For example, an earthquake could level an entire house in an instant. This goes above and beyond the normal wear and tear risks of a house. Due to the fact that acts of God still do happen, many people choose to purchase insurance protection for certain ones.