What does "act of God" refer to in policy exclusions?

"Act of God" refers to unforeseeable natural events that occur without human intervention and that typically cannot be avoided or predicted. These events include occurrences such as earthquakes, floods, tornadoes, and hurricanes. In the context of insurance policy exclusions, an "act of God" indicates situations where the insurer cannot be held liable for damages or losses resulting from such natural disasters, as these events fall outside the control of both the insured party and the insurer.

Understanding the concept of an "act of God" is crucial for policyholders as it informs them of specific scenarios where their insurance coverage may not apply. This highlights the importance of knowing what is excluded in a policy, particularly regarding uncontrollable natural occurrences that can lead to significant damages.