In property insurance, you invariably come across the term ‘acts of god’ which are covered under the insurance policy. The term simply means natural disasters or calamities which are beyond human control and which cannot be caused by human beings.
The term also implies that these events cannot be avoided by use of caution or by taking preventive measures. So what events are considered as ‘acts of god’ and what events are not considered as such? Let us find out.
The term ‘acts of god’ usually refers to natural disasters such as earthquakes, floods, fires, hurricanes, tornadoes and hail. A fire caused by lightening is considered an act of god and is covered by the insurance policy, but if the fire in the house is caused due to negligence on the part of the insured or his family, the insurance company cannot be expected to provide insurance cover to such an eventuality as such a fire could be prevented by the insured.
Also, arson and rioting are not considered as ‘acts of god’ and therefore damages caused due to these events are not covered by the insurance policy.
The damage caused by other natural disasters such as earthquakes, floods, tornadoes, etc, are usually covered by home or property insurance policies. But if the policy does not cover any one of these, the policyholder has to buy an add-on policy to seek protection against such an eventuality.
Hence, it is imperative for the policyholder to read the policy document carefully to understand which of the ‘acts of god’ are covered and which ones are not.