What is meant by 'act of God' in insurance terms?

In insurance terminology, an 'act of God' refers to natural events that occur independently of human intervention, which typically impact insurance coverage. These events include phenomena such as floods, earthquakes, hurricanes, and other severe weather conditions. Since these occurrences are beyond human control and are associated with significant unpredictability and potential damage, insurance policies often encompass coverage for losses resulting from these acts. This concept is essential in delineating what is considered a covered peril under various insurance policies.

In contrast, other options discuss elements that do not align with the concept of 'act of God.' Accidents involving human error are typically accounted for through liability coverage and do not fall under the category of natural events. Predictable and preventable events do not meet the criteria for an act of God, as these imply some level of human forewarning and the possibility of action to mitigate risk. Lastly, insurance fraud pertains to dishonest practices by individuals regarding their insurance claims and is entirely unrelated to the natural events described by 'act of God.'