FACT: The words "Act of God" do not appear in any home, car or business insurance policies in Canada. In fact, insurers frequently pay for claims stemming from events that some might call "acts of God," such as hurricanes, wildfires, high winds and hailstorms.
It's true that some natural events are excluded from insurance policies, but there are sound reasons for this. One example of a natural event that is excluded from insurance policies is overland flooding. This type of flooding is not insurable because it only happens in very specific areas - that is, flood plains - where it is almost inevitable. Because people tend to avoid living in areas prone to this type of flooding, very few people have a need for overland flood insurance. If it were offered to those few people seeking it out, overland flood coverage would be very expensive for insurers to provide (due to the almost inevitability of costly claims), so premiums would be unaffordable for most policyholders. Insurance is about spreading risk among many people. It only works for perils that are unexpected and that could happen to anyone. Naturally occurring events such as overland flooding do not meet these criteria.
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