Dwelling Policy Practice Test

In a dwelling policy, when is loss due to an "act of God" typically covered?

1. Only if specified perils are included

2. Generally always covered

3. Never covered

4. Only on policies with additional endorsements

The correct answer is: Only if specified perils are included

In the context of a dwelling policy, loss due to an "act of God," such as natural disasters like hurricanes, earthquakes, or floods, is typically covered only when specified perils are included in the policy. This means that the policy must explicitly state which perils are insured against. Standard dwelling policies may not cover certain natural events by default. Instead, coverage often needs to be added through endorsements or supplementary provisions. As a result, the inclusion of specified perils is essential in determining whether damage from acts of God is covered. This underscores the importance of reviewing the policy details to understand the extent of coverage, as different insurers have different terms and conditions regarding natural disasters.