How Can Insurance Companies Use the Excuse "An Act of God" to Get Out of Paying a Claim?

September 7, 2021

Short Answer, They Can't - Learn Why.

OK. Here we go.

First, insurance companies do not often use the terms “Act of God”. Any insurance professional using the phrase “Act of God” is suspect. Hearing those words from someone who works in the insurance industry should raise bright red flags. Why?

The words “Act of God” will not be found in ANY insurance policy. Anywhere.

Any insurance professionals worth their salt will not use that phrase to determine whether a loss is covered or excluded.

According to TheFreeDictionary .com, an Act of God is defined as

An event that directly and exclusively results from the occurrence of natural causes that could not have been prevented by the exercise of foresight or caution; an inevitable accident.

Courts have recognized various events as acts of God—tornadoes, earthquakes, death, extraordinarily high tides, violent winds, and floods. Many insurance policies for property damage exclude from their protection damage caused by acts of God.

As referenced in the definition above, events categorize as “Acts of God” include:

Tornadoes
Violent Winds
Hail
Lightning
Volcanic Eruption

The “Acts of God” bulleted above are covered under many if not most property insurance policies.

On the other hand:

Earthquakes/Earth Movement
Flood/High Tides

May be available for purchase by endorsement or on a separate policy.

Summary:

The term “Act of God” is not specific enough when discussing what is, or what is not covered by an insurance policy. There are numerous causes of loss that might fall under the realm of an “Act of God.”

So, unique and specific causes of loss referenced using that phrase may be:

Covered as part of a base property policy
Added for an extra cost, or
Excluded from coverage depending on the specific policy being discussed.

If you have had a conversation with an insurance representative or agent using the term “Act of God” in the context of making an excuse for lack of coverage, we strongly suggest that you research the other insurance agency options in your area. Want some additional assistance? We LOVE to help! Please feel welcome to give us a call at 607-324-7500.

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