Vis Major
What Does Vis Major Mean?
Vis major is a Latin term meaning “act of God.” In insurance, it refers to events that are typically excluded from coverage in a contract because they are unforeseeable and beyond human control. Examples include natural disasters such as earthquakes and tornadoes.
Insuranceopedia Explains Vis Major
Earthquakes and tornadoes are uncontrollable natural events that can cause significant loss of property and life. In the insurance industry, damages resulting from these events are often excluded from standard coverage. As a result, if a person’s house is destroyed by an earthquake, they would typically need to rebuild it at their own expense, even if the house is insured under a standard policy.
To avoid financial difficulties in the event of a vis major, policyholders can opt for a specific policy clause or rider that provides coverage for such events. However, this additional protection comes at an extra cost.
