Act of God Insurance

What is Act of God Insurance?


“Act of God” is a legal term that is used for events that are completely outside of human control. This would include circumstances like natural disasters and sudden floods. They are essentially events that other people cannot be held responsible for. The term itself is not in reference to a specific god, just the fact that the events are not in human control. As a result, “Act of God” insurance is created to cover the events and situations which are known to cause damage to property and are completely out of the control of the humans involved in the situation.


What Does Act of God Insurance Cover?


Homeowner’s insurance policies have an exclusion clause for damages caused by acts of God. It can typically include damages as a result of war, although some policies have thought it would be better to remove this element. Generally, it will cover the majority of acts of nature, such as hail, storms, high winds, and other related events that may be considered to be “acts of God”. If your property experiences damage as the result of something that you would believe to be an act of God, you are supposed to contact your insurer immediately to determine whether or not it would actually be covered. In example, if there is an ice storm that provides damage to your roof, your policy may be able to provide you with some coverage.


What Are the Cost Expectations for Act of God Insurance?


Generally act of God insurance is priced based on the prices that are available for homeowner’s insurance. Although most people do not realize it, Act of God insurance is actually a clause that is provided in homeowner’s insurance – so therefore, whatever you are paying for homeowner’s insurance is essentially the price that you are paying for act of God insurance as well. This can vary depending on your location and your property, as well as the different premiums and rates that are available within your area.


What Are the Benefits of Act of God Insurance?


The benefits of having act of God insurance for coverage is that if any events happen that are out of your control, such as a hurricane – you would not be responsible for having to pay for the damage. In most cases, the damage would be covered. There are some situations where natural events would not be covered by the act of God insurance; for example, if you are in an area where it is more likely to start flooding, then act of God insurance probably won’t cover flooding, but actual flood insurance may be provided to you instead. In fact, some locations actually provide flood insurance from the National Flood Insurance Program. In the same consideration, there hurricanes and earthquakes may have similar provisions depending on your location.


How to Purchase Act of God Insurance?


There may be some difficulty in purchasing Act of God Insurance. You will need to talk to your insurance agent to determine if they offer this type of insurance and how to obtain it. Remember, some companies may have the insurance but have it under a different name. There may also be certain guidelines to this insurance as well as state regulations the agent will need to discuss with you prior to purchase.

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