What’s an Act of God in Homeowners Insurance?

What’s an act of God?

An act of God isn’t an insurance term you’ll come across in your homeowners policy. You will, however, find the term frequently used to describe damaging events that lead to insurance claims. But these events can’t be human-made acts, such as vandalism or theft.

An act of God is usually a sudden and unexpected natural disaster. Unfortunately, some natural events, such as floods and earthquakes, typically aren’t covered.^[1]

Hurricanes, hail, and tornadoes are good examples of acts of God. Fire can also be considered an act of God if caused by a lightning strike. But if you accidentally start a fire while cooking, that would be considered a human-made act and wouldn’t be covered.

Acts of God homeowners insurance will cover

These acts of God are commonly covered perils:

• Hurricane

• Tornado

• Lightning

• Wildfire

• Hail

• Volcano

• Freezing

• Snowstorm

These perils won’t be referred to as acts of God in your homeowners insurance policy, but understanding which perils are covered will show you what supplemental coverages may be necessary to reach your coverage goals.

Acts of God homeowners insurance won’t cover

Even though natural disasters aren’t the homeowner’s fault, standard homeowners policies don’t cover some acts of God, including:

• Earthquakes: Generally, you have to purchase a rider for earthquake coverage.

• Sinkholes: You can look into purchasing a rider if you worry your home is at risk of sinkhole damage.

• Flooding: Flooding typically isn’t covered by homeowners insurance policies, and you have to purchase coverage through FEMA's National Flood Insurance Program (NFIP).

Policy types that cover acts of God

It’s possible to buy additional coverage for acts of God not covered in a standard homeowners policy:

• Earthquake insurance: Because standard homeowners insurance policies don’t cover earthquake damage, you need to purchase either a separate earthquake policy or an endorsement in addition to your standard homeowners insurance policy. You can buy this coverage through private insurance companies.^[2]

• Sinkhole insurance: Sinkhole damage can be very expensive to repair, and, as a result, insurance companies rarely include this act of God in their standard policies. Some states require that insurance providers offer additional sinkhole coverage that can be added to a base policy. In either event, your insurer will usually inspect your home before issuing sinkhole coverage.^[3]

• Flood insurance: Flood damage is another very expensive act of God and is the most common natural disaster that affects U.S. homeowners. The NFIP backs coverage for floods, making it a great place to start your coverage search.^[4]

Finally, if you live in an area prone to wildfires, volcanic eruptions, hurricanes, or tornadoes, you might need to increase your coverage limits to ensure your home and belongings are adequately protected from these risks. Talking to your insurance agent can help you better understand your insurance needs.

How to file a home insurance claim for an act of God

If you need to file a claim due to an act of God, you generally need to take the following steps:

1. Call the insurance company. Start by calling the insurance provider that issued the policy that covers the event. This may be your main homeowners insurance policy provider or the company that issued the policy for perils not covered by your main policy, such as flood insurance.

2. Complete claim forms. Your insurance provider will walk you through what they need in regards to paperwork.

3. Meet with an insurance inspector. After you finish all the necessary claim forms, an insurance adjuster will likely stop by your home to inspect any damage.

4. Create a list of damages. Take detailed notes on any structures of the home or belongings in the home that are damaged and require repair or replacement.

5. Hold onto receipts. If you need to make temporary repairs before you’re reimbursed by the insurance company or need to stay in a hotel while you wait for repairs to be finished, save your receipts to make reimbursement easier afterward.