What is an "act of God" in insurance terms?

In insurance terminology, an "act of God" refers specifically to natural events such as hurricanes, earthquakes, floods, or other disasters that occur without human intervention and cannot be accurately predicted or controlled. These events are significant in the context of insurance because they may lead to substantial losses, and their uncontrollable nature often means that standard property and casualty policies will cover damages incurred as a result of such occurrences.

Recognizing that an act of God is inherently tied to nature helps differentiate it from other types of events, such as intentional harm or negligent actions. Intentionally causing harm refers to actions taken by individuals deliberately to inflict damage, while acts of war or terrorism involve human actions with specific motives, making them categories separate from natural disasters. Negligent behavior entails a failure to act with reasonable care, leading to avoidable losses, which again diverges from the concept of an uncontrollable natural event. Understanding this distinction is essential for grasping how various types of incidents are treated within insurance policies.