Auto Insurance And Home Insurance For An Act Of God?
One of the most hotly debated concepts in the world of auto insurance and home insurance is the idea of an Act of God (AOG). Now, spiritual views aside, AOG insurance claims are difficult for many reasons.
First of all, AOG is highly interpretable. The most common definitions seem to conform to the concept that AOG is an event which is beyond the control of any human participants. This is not to say a deity had a hand in the events, but merely a colloquial term for humans inability to foresee some circumstances.
Secondly, AOG incidences are usually only covered under the more comprehensive forms of auto insurance or home insurance called comprehensive peril coverage. Nuisance or disaster can strike at any moment, totally out of the normal reach of human influence. If one doesnt have a plan that includes Comprehensive Peril Coverage, then they have to front the bill for any damages that they may incur.
Quick example; David L. Bryant of California parked his car under an ill-fated tree branch one afternoon. After a strong gust of wind the branch fell onto Bryants car and dented the roof. A fairly typical accident, right? Bryant thought so too, and he thought that the insurance carrier for the owner of the tree would be able to handle the damages. This was not the case; the insurance company filed the accident as an AOG that was out of their clients control. This unfortunate choice of parking spots cost Bryant the repair bill because he did not carry comprehensive coverage on his car.
Now, lets conduct a thought experiment. Say Mr. Bryant parked his new car in the middle of the parking lot, far away from the menacing branches of any greenery, but now he has the comprehensive auto insurance plan that includes comprehensive peril coverage. After walking some fifty feet away from his car he watches as a flaming meteorite the size of a television pierces the atmosphere and hammers into his car. Now, pending the correct paperwork and amateur photography, Bryants insurance will cover the damage because of his new, comprehensive auto insurance plan.
What Im proposing is the idea of preparedness. Comprehensive peril coverage comes in both auto insurance and house insurance incarnations, and with different rules for claiming. However, the necessity of coverage against that which is out of your hands is crucial.
Statistics gathered in the wake of the May 2011 tornadoes that ravaged Joplin, MO show the necessity of comprehensive peril coverage. The amount filed in both personal and commercial auto and home insurance claims numbered over 15,000, with a total of over half a billion dollars in payout from insurers. Without comprehensive peril coverage plans, that are popular in area such as the American mid-west, there would have been zero financial compensation from the disaster.
Maybe a volcano wont be erupting in your backyard any time soon, but depending on your geographical location there are many unforeseeable circumstances that would make comprehensive peril coverage essential to your auto insurance or house insurance plan. Maybe a disoriented buck charges into your automobile, or through the patio doors of your house? Or a snow laden tree branch ends up going through your window to rest on your living room couch? There is always that element of the random and chaotic; that is what a comprehensive peril covered auto insurance or home insurance plan is for.
by: Mantsch-Lafaro Insurance Agency