What is an act of God exclusion?

An act of God exclusion is a clause in an insurance contract that excludes coverage for any damage caused by natural events such as earthquakes, floods, and other extreme weather events. The clause typically states that if the damage is caused by an act of God, the insurer has no obligation to provide coverage. This clause is often included in insurance policies as a way of limiting the risk that the insurer is taking on and protecting them from catastrophic losses. In Arkansas, an act of God exclusion is enforceable only if it is clearly set out in the terms of an insurance policy. The insurer must provide the insured with a clear and unambiguous notice of the exclusion in order for it to be considered valid. Furthermore, the state has set out limitations on when the exclusion can be used. For example, the exclusion cannot be used to deny coverage for any damage that is caused by a natural process that is foreseeable and could have been avoided. Overall, an act of God exclusion is an important clause to consider when taking out insurance in Arkansas. It is beneficial for both the insured and the insurer, as it helps to limit risk and to ensure that coverage will be available if needed. It is also important for both parties to pay attention to the details of the policy, such as the language of the exclusion, in order to ensure that they are fully aware of the coverage provided.

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What is an act of God exclusion?

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