You need to look at the actual policy wording (see their website rather than the info you are quoting.
If you look at the policy itself there is no reference to "Act of God'
What the insurance company are saying is that under the original hire agreement the car hire company may exclude "Acts of God" as well as other causes for which you will be liable for repair costs.
Under their insurance policy they will cover the cost of any repairs for which you become liable under the hire contract for up to £4,000.
£4,000 is the limit of liability for any payment under the policy for repair costs. It is not a sub-limit for damage caused by Acts of God which as I have already said have are not mentioned in the Insurance policy.
I hope that's clear.
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