Car Insurance is an important factor that protects a driver from so many numbers of unknown risks. And the best way to be protected from this threat is to be insured. There are circumstances that may occur which might cause insurance companies to shy away from compensation and in this article, we will be discussing about insurance policy in relation to natural disasters referred to as an act if God.
In the insurance industry, an act of God refers to an accident or events that are caused by nature and not humans in any kind. They are unavoidable, unpredictable and uncontrollable circumstances. Such events includes earthquakes, hurricanes, flood, lightening strikes, hails, wildfires which are all considered as an act of God because they happens unaware.
In the insurance industry, an act of God refers to an accident or events that are caused by nature and not humans in any kind. They are unavoidable, unpredictable and uncontrollable circumstances. Such events includes earthquakes, hurricanes, flood, lightening strikes, hails, wildfires which are all considered as an act of God because they happens unaware.
As weather changes negatively and disasters striking more frequently and violently on some regions in the world, most insurance companies are re-evaluating their financial liabilities and it looks like most insurers especially house and car owners will be losing out in two ways.
- The first way they lose their property is by the destruction caused as the result of unforeseen disaster refers to as an act of God.
- While the other way they lose is with the unexpected loss of their insurance policies as insurance companies renew their financial liabilities.
Just as the damage from tornadoes and hurricanes wreak havoc over properties on other part of the continent, insurance companies tend to reduce coverage in those states most affected by this Natural disaster.
In the aftermath of Hurricane Irene in the summer of 2011, Allstate gave an announcement to almost 45,000 insurers in North Carolina that renewal of their insurance polices were not an option unless they also had auto insurance policy.
During the Alabama tornadoes in the spring of 2011 which affected and damage a lot of properties worth around $11 billion, Alfa Mutual Group had announced that, it would not renew 73,000 property insurance policies. Insurers have been increasingly dropping coverage since 1992, when Hurricane Andrew struck the state of Florida. In auto insurance companies, the comprehensive part among the types of insurance policy provides coverage for disaster termed an act of God.
For example if a huge tree falls on your vehicle or in front of it which leads to your car having a crash, your comprehensive insurance policy covers it. This is one of the best benefits of comprehensive auto insurance coverage because it offers protection from unavoidable and unpredictable events.
During the Alabama tornadoes in the spring of 2011 which affected and damage a lot of properties worth around $11 billion, Alfa Mutual Group had announced that, it would not renew 73,000 property insurance policies. Insurers have been increasingly dropping coverage since 1992, when Hurricane Andrew struck the state of Florida. In auto insurance companies, the comprehensive part among the types of insurance policy provides coverage for disaster termed an act of God.
For example if a huge tree falls on your vehicle or in front of it which leads to your car having a crash, your comprehensive insurance policy covers it. This is one of the best benefits of comprehensive auto insurance coverage because it offers protection from unavoidable and unpredictable events.
Having comprehensive policy is the only way to be protected from natural disasters that causes loss to properties.
However, another important thing to consider is that, there are high limitations to act of God coverage in a comprehensive policy. Your policy may or may not cover acts of God, or may cover some events and not others. For example personal properties in the car if destroyed can not be recovered under auto insurance plan unless you have specific riders on your policy to include them.
When you want to renew your insurance policy each time, you will discover that, the coverage is not what it once used to be in years past, so it is always advisable to find the right auto insurance coverage to protect your vehicle against an act of God plus other risks. The best thing to do is to shop around for better insurance coverage, compare insurance quotes from different insurance companies selling close to your place to get a comfortable amount you should pay for as a driver.
Make sure you get a good deal and don’t just get a single quote and sign on. For those that live in areas considered prone to natural catastrophe such as hurricane, earthquake, flooding, storm etc, you may need to purchase separate policies specific to your coverage needs.
I hope this helps?
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