Is Your Home Covered For Tornado Damage?

23 October 2015 by Elijah Steward

While certain areas of the country are more at risk for tornadoes than others, if the conditions are right, a nasty storm can spawn a tornado anywhere. Fortunately, standard home insurance policies generally cover damage caused by windstorms, including tornadoes.

But buying home insurance is just one step toward protecting against losses caused by windstorms. Although damage to your home and its contents usually is covered up to the limits designated in your policy, the amount of coverage policies provide for basic perils vary. Therefore, you need to know the specific coverage your policy provides.

Exclusions May Apply

Like anything else, there are exceptions to the general rule. While most home insurance policies cover wind damage caused by tornadoes, not all do. Because tornadoes cause billions of dollars of insured losses in the U.S. each year, if you live in an area, such as the Midwest where tornadoes are common, a standard home insurance policy may not cover windstorm damage.

If your home is considered to be at high risk for tornado damage, windstorm damage may be excluded from your basic coverage. In that case, your insurer may offer the option of adding an endorsement, or rider, to your current policy to cover wind damage. Although you don't usually need to buy special insurance to cover tornado damage, depending on the state in which you reside, you may be required to buy a separate windstorm policy.

What It Covers

Not only does home insurance cover damage to the structure of your home, but it also covers the contents inside. The insurer will cover the loss of personal property from a tornado up to the limit stated in your policy. If you have highly valuable personal possessions, you may want to consider adding a rider to your policy to increase the coverage. The extra cost of a rider depends on the additional amount for which you insure certain personal property.

Your home insurance policy may cover vehicles that are damaged by tornado winds if they are parked in the garage at the time. If not, your auto insurance policy should cover the loss as long as it includes comprehensive coverage.

If your family is displaced following a tornado, your policy may pay for living expenses while your home is being rebuilt or the damage is being repaired. Additional living expense coverage helps pay for the cost of renting a home or staying at a hotel in the interim. The insurer doesn't foot the entire cost but pays the difference from your normal standard of living. Therefore, if you and your family eat out because you have to stay at a hotel, your insurance will pay any cost above what you usually spend to buy groceries to prepare meals at home.

The Problem With Being Under-Insured

Even if you have home insurance that covers potential losses caused by windstorms, the coverage a typical policy offers may not be enough, especially if a tornado levels your home to the ground. As the cost of materials and labor continue to rise, it may be necessary to increase the amount of coverage you carry so that you can rebuild your home without falling short of money. Your premium will increase, but undervaluing your home may leave you with too little coverage and significant out-of-pocket expenses.

If the maximum coverage limits your policy provides isn't enough, you will have to pay the difference. The cost is in addition to paying the amount of the deductible set by the terms of your policy. Some policies require that you also pay a separate deductible when filing a claim for wind and/or hail damage.

For more information, contact Robbins Insurance & Financial Services Inc. or a similar company.

Share

Search