When people discover that I spend my workdays brokering insurance, one of the first questions they ask is, does home insurance cover Acts of God?
The short answer is Yes . . . with a qualification or two.
When discussing insurance, “Acts of God” is an expression that describes when nature seems to turn on us and causes a calamity – and that calamity, in turn, causes damage to people’s property.
Many people are uncertain what their home insurance will and will not cover in these uncontrollable events of nature. Let’s see if I can clarify why there is confusion.
“Acts of God” such as windstorms, lightning strikes and hail storms – even forest fires – are generally covered under a typical homeowner policy. This is because these are freak occurrences, happening seldom if ever.
However, not all weather calamities are freak occurrence in certain areas. Think of annual weather patterns in certain areas of the world, or parts of our own country that we hear on the news.
Because acts such as earthquakes and floods most often happen in the same geographical locations time and again, year after year, they are not freak and therefore they are not typically covered. (It’s important to know, though, that in many cases, even these “acts” can be covered for an additional premium.)
With over 30 years as an insurance broker, my go-to advice when questions arise is to call me or your SMK representative if I handle your policies. If SMK Insurance doesn’t cover you, then put in a call to the organization that does.
I can’t say it often enough – know your insurance coverage.