Key Takeaways

  • Acts of God are unforeseeable natural events beyond human control, often addressed in insurance and legal contracts.
  • Act of God insurance refers to policy clauses that either cover or exclude damage from such events.
  • Common covered events include earthquakes, hurricanes, floods, wildfires, and lightning strikes.
  • Not all policies automatically cover Acts of God—homeowners, renters, and auto insurance coverage vary widely.
  • Crafting an Act of God clause in a contract requires precision about triggers, obligations, and remedies.
  • Courts may still hold parties liable if negligence or failure to mitigate damage is involved.
  • Additional riders or separate policies may be necessary to ensure full protection from Act of God events.

What is an Act of God?

An Act of God, which is also commonly referred to as a force majeure event, is a natural force that causes some type of damage. Common examples of acts of God include:

  • War
  • Climate events such as tornadoes
  • Labor strikes
  • Riots

In general, a health condition, such as cancer, would not be considered an Act of God. That said, sudden cancer diagnoses are similar to force majeure events in that they are unpredictable and uncontrollable. While some contracts do include an Act of God clause, they are uncommon in other contracts, such as a wedding agreement.

Acts of Gods are typically events that human actions cannot influence. Natural disasters, such as earthquakes and tornadoes, are the most common examples of Acts of God. If insurance policies cover Acts of God, they will usually list certain events. No specific religious belief system is associated with the ‘Act of God' phrase.

A common misunderstanding related to Acts of God is that no one can be held responsible for the damage that results. While it's true that natural disasters are hard to predict and almost impossible to prevent, the person covered by an insurance policy cannot use this unpredictability to avoid taking precautions to avoid damage from these events.

What Is Covered by Act of God Insurance?

Act of God insurance typically refers to provisions within homeowners, renters, auto, or commercial property insurance that address damage caused by natural forces beyond human control. Covered perils can include:

  • Earthquakes
  • Floods
  • Hurricanes
  • Tornadoes
  • Lightning strikes
  • Volcanic eruptions
  • Wildfires
  • Severe hailstorms

While some standard policies may include protection against these events, many insurers require the purchase of additional coverage (e.g., separate flood or earthquake policies). It's important to differentiate between sudden, natural events (which may qualify) and gradual damage (which often does not). Always review the named perils and exclusions in your policy to understand whether your situation qualifies as an Act of God.

Act of God Exclusions

It's common for insurance policies to exclude coverage for damages that result from an Act of God. Anyone that holds an insurance policy should carefully review their policy to determine which Acts of God are and are not covered. If you find that a specific type of damage is not covered by your policy, you could invest in an additional policy to increase your protections.

For instance, many insurance policies exclude Acts of God related to flooding. If you live in a flood prone area, you may need to purchase a separate flood insurance policy. Other insurance policies do cover damage to a home caused by an Act of God, but do not cover damage to surrounding buildings. So, your home might have coverage for flood damage, but your free-standing garage might not.

The advantage of an Act of God clause is that it can protect the interests of both parties after a specified event. In particular, these clauses limit the liability of one or both parties when a force majeure event interferes with their ability to fulfill their contractual obligations.

Common Limitations and Misconceptions in Act of God Insurance

While many people assume that Act of God insurance covers all natural disasters, several misconceptions and limitations exist:

  • Partial Property Coverage: A policy may cover your house but not detached structures like sheds or garages.
  • Gradual Damage Exclusion: Long-term deterioration (e.g., erosion, mold, or dry rot) typically does not qualify.
  • Negligence Clauses: If damage could have been prevented with reasonable maintenance (e.g., securing a roof before a storm), the insurer may deny the claim.
  • Acts of Man: Human-caused events such as vandalism, arson, or accidents are not Acts of God and fall under separate clauses or coverage types.

Understanding these nuances is essential to avoid unexpected claim denials.

How to Write an Act of God Clause

When writing an Act of God clause, there are four issues that you need to clearly define:

  1. What events will activate the clause.
  2. How and when the party affected by the Act of God will contact the other party.
  3. What actions each party needs to take related to their contractual obligations.
  4. A statement that the contract can be fully terminated if the Act of God prevents one party from fulfilling a fundamental obligation.

Legal Considerations for Act of God Clauses

Including an Act of God clause in a contract can protect both parties by clarifying liability and obligations during force majeure events. When drafting the clause, consider:

  • Force Majeure Language: Use precise terminology, often including both "Acts of God" and "force majeure" to ensure broad applicability.
  • Mitigation Requirements: Specify that the impacted party must take reasonable steps to minimize the impact of the event.
  • Documentation Standards: Define what proof is required to invoke the clause—such as government-issued weather alerts or official damage assessments.
  • Governing Law: Since interpretation can vary by jurisdiction, state the applicable law that governs the clause.
  • Dispute Resolution: Outline the process for resolving disagreements over clause enforcement (e.g., mediation, arbitration, or litigation).

Courts often scrutinize whether the event truly qualifies and whether parties have acted in good faith.

Examples of an Act of God Event

To better understand Act of God events, it's best to examine a few examples. Imagine, for instance, that there are two islands. On Island One, there is a drought that covers the entire island, and the drought also covers large portions of Island Two. Legally, severe droughts can be considered Acts of God. Force majeure events cannot be controlled by a contracted party, and this lack of control means the party will be unable to comply with their contractual obligations.

Droughts, as forces of nature, are usually understood to be force majeure events. Government actions, including war, can also be considered force majeure events in many cases. You should understand, however, that force majeure events are not restricted to these categories. In fact, many contracts specifically outline what constitutes one of these events.

In a contract, you can usually find Act of God clauses at the end of the contract. Unfortunately, because Act of God clauses are included with other standard clauses, there is usually little discussion about what effect the clause will have on the parties. Although this may not result in any problems depending on the nature of your contract, you should consider how unexpected natural events may impact your ability to uphold your obligations.

Do You Need Act of God Coverage?

Whether you need specific Act of God insurance depends on your location, property type, and risk tolerance. Here are some considerations:

  • Homeowners in High-Risk Zones: If you live in an earthquake-prone or floodplain area, supplemental policies are often essential.
  • Renters: While the landlord’s policy covers the building, tenants should consider renters insurance that includes weather-related contents coverage.
  • Drivers: Comprehensive auto insurance often includes coverage for falling trees, hail, and other natural events.
  • Business Owners: Commercial insurance should be reviewed to ensure that both structural damage and business interruption from Acts of God are adequately covered.

Consulting an insurance agent or legal expert can help you tailor your coverage to your unique risks.

Frequently Asked Questions

  1. What qualifies as an Act of God for insurance purposes?
    Events like earthquakes, floods, hurricanes, and other uncontrollable natural disasters typically qualify, provided they're listed in your policy.
  2. Does homeowners insurance always cover Acts of God?
    No. Many policies require separate riders or endorsements for perils like floods or earthquakes.
  3. Is an Act of God the same as force majeure?
    They are related concepts—Acts of God refer specifically to natural events, while force majeure may also include man-made disruptions like wars or strikes.
  4. Can I file a claim if my negligence contributed to the damage?
    Not usually. If insurers find that the damage could have been mitigated through reasonable maintenance, they may deny coverage.
  5. How can I ensure full Act of God insurance protection?
    Review your policy carefully, purchase supplemental coverage if needed, and confirm whether structures, contents, and loss of use are all covered.

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