MAIN Your Money Insurance Acts of God & Disaster Insurance

Act of God - n. a natural disaster such as a tsunami, earthquake, volcanic eruption, wildfire, tornado or hurricane.

Nowadays, it's not as if anyone requires a definition of what constitutes an act of God, what with the alarming frequency of catastrophic events — such as the tsunamis in South Asia and Japan; the hurricanes that plague the U.S.; or the devastating earthquakes that occur worldwide.

In short, an act of God is a natural disaster that no one has the earthly power to prevent.

The really bad news? There is no one umbrella insurance policy that covers natural disasters.

For example, homeowners need a separate fire insurance policy to protect against the fires that may result from an earthquake. If you purchase hurricane insurance, you better have a separate flood insurance policy to cover water damage.

In the U.S., FEMA may be available for a loan (that you must pay back) to help rebuild. The catch? The President must first formally declare your neighborhood a disaster area.

Although small comfort, loopholes to protect insurance companies exist universally. Most home insurance policies anywhere in the world often prove to be a mine field of fine print and exclusions. Word to the wise? Read and re-read your policy to see exactly what it covers and - more importantly - what it excludes.

Around the Web, find out more about natural disaster insurance with tips and advice on exactly what's covered by separate policies, the likelihood of a natural disaster hitting your area, and approximately how much coverage you may need ...

also see -> earthquake insurance

More about act of God & disaster insurance around the Web:

Do you really need disaster insurance? - Check out this overview from MSN Money with a good discussion comparing the risks with the cost/benefit ratio of purchasing disaster insurance.

Natural Disasters - State Farm Insurance provides a complete consumer guide to insuring against earthquakes, floods, hail storms, hurricanes, tornadoes, wildfire and volcanoes, including preparations, reporting damage and filing claims.

Insure.com - Who Needs Flood Insurance? - Details about flood insurance coverage with related resources to more information on what's available, typical costs depending on location, related contact information, glossary, flood preparedness guide, FAQ.

Tornado Insurance: Putting a Price on Disaster - Archived CBC video presentation including tips, advice, and a Did You Know? feature on how to protect and prepare yourself financially for a tornado.

Catastrophes: Insurance Issues - Comprehensive overview of insurance available in the U.S., risks by location, typical costs and deductibles, recent news and legislation, and historical from the Insurance Information Institute.