Act of God
Definition and meaning of Act of God in real estate.
An Act of God is a legal and insurance term referring to an extraordinary, severe natural event that is entirely outside of human control and cannot be prevented by reasonable foresight or care.
In more detail
This concept is commonly used in property insurance policies, lease agreements, and construction contracts to define liability limits. Events such as earthquakes, hurricanes, floods, and lightning strikes typically fall under this classification. In contracts, an Act of God clause often relieves the parties of their obligations if such an event makes performance impossible.
For property owners, understanding what their insurance policy covers under this term is vital, as standard policies often exclude specific acts of nature like floods or earthquakes unless additional coverage is purchased.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Force majeure (in general contracts) |
| Common Examples | Hurricanes, earthquakes, floods, lightning |
| Insurance Impact | May require special riders for full coverage |
A severe hurricane destroys a home under construction, and the builder is released from the contract deadline because the storm was legally classified as an Act of God.
Frequently asked questions
Does standard homeowners insurance cover all Acts of God?
No, while standard policies cover some events like windstorms or hail, they typically exclude major disasters like earthquakes and floods, which require separate policies.
How does an Act of God clause protect a tenant?
If a natural disaster makes a rental property uninhabitable, the clause may allow the tenant to terminate the lease early without penalty.
Can human negligence affect an Act of God claim?
Yes, if a property owner fails to repair a damaged roof and a normal rainstorm causes flooding inside, the insurance company will likely deny the claim due to maintenance neglect rather than classifying it as an Act of God.
Related terms
Sources & references
See our sources and editorial standards.