Is Tornado Damage Covered by Homeowners Insurance?
Tornadoes are on the rise, according to the National Oceanic and Atmospheric Administration. The administration documented 197 tornadoes in the United States in 1950, and almost 1,500 in 2019.
A tornado's intensity may flatten a whole town, leaving houses and businesses in ruins. You may take certain precautions to keep your family safe during a tornado, but the best way to safeguard your house is to get a comprehensive homeowners insurance policy. The second best option is to learn about your coverage and how it operates.
Tornado coverage is often provided by standard house insurance, but you may need to change some policy levels for optimal protection.
NOTE:
Tornado damage is covered by most house insurance plans.
Most homeowner's insurance plans will cover additional living expenditures such as hotel bills and restaurant meals in the event of storm damage.
Personal property coverage, which solely pays the depreciated worth of personal things, is included in many house insurance plans.
The deductible on your house insurance policy is your responsibility.
Automobiles damaged by tornadoes are not covered by homeowner's insurance.
Does Home Insurance Cover Tornado Damage?
Most conventional house insurance plans cover damage to your home, other structures, and personal belongings caused by "covered risks." Another term for what causes the damage is a covered peril (such as wind).
House insurance may also cover you if you lose use of your home (for example, if it becomes uninhabitable) and for your personal liabilities (if someone gets hurt on your property). Falling items, hail, lightning strikes, water damage, and wind are all major risks during tornadoes, and most insurance cover them. Damages caused by power surges, which can sometimes occur during tornadoes, are covered by certain plans.
What’s Covered?
A house insurance policy consists of a number of different coverages. Individual coverages will apply to different sorts of losses during a tornado. A deductible is the amount of money you're liable for paying toward losses for most forms of coverage.
Dwelling Coverage
Dwelling coverage pays to repair or replace the main structure of your house as well as any associated structures, like as a garage. For example, if a tornado damages your home's roof, your dwelling coverage will assist you in replacing it.
Your insurance should provide adequate dwelling coverage to reconstruct your home fully. To cover the whole replacement cost of losses, some insurers demand policyholders to carry dwelling coverage equivalent to at least 80% of a home's rebuild costs—even if that sum is less than your coverage maximum.
Other Structures Coverage
Fences, garages, gazebos, and sheds are examples of detached structures covered by other structures coverage. The level of coverage is normally decided by the amount of insurance you have on your primary residence; most conventional plans cap it at 10% of that amount. So, if your primary residence is insured for $300,000, your insurance policy will cover damage to secondary structures up to $30,000.
Personal Property Coverage
Tornadoes may devastate a property, destroying personal belongings like clothing and furniture due to water damage and toxins from shattered construction components. Up to the policy's limitations, personal property coverage assists in the replacement of personal things.
For personal property losses, many typical house insurance plans only cover a depreciated value. For instance, if you purchased $600 for a television five years ago, an insurance company could value it at $150 now.
However, some homeowners insurance include or provide personal property replacement cost coverage as an endorsement. Replacement cost coverage reimburses you for the expense of replacing your personal belongings at current market pricing.
Loss of Use Coverage
If your house is rendered uninhabitable due to tornado damage, loss of use coverage can assist cover additional living expenses such as hotel bills, rent, and restaurant expenditures. This coverage is also restricted by the amount of insurance you have on your primary residence—typically 20% to 30% of its value.
Other Considerations
Tornado losses may not be covered by a regular house insurance policy. Trees and automobiles can become projectiles as a result of a tornado's destructive energy, causing damage to your home and your neighbors' properties.
You may not always be aware of which party's insurance should pay damages, or even what form of insurance should be used. As a result, as quickly as possible after the harm has happened, gather any evidence you have, such as photographs and eyewitness reports.
Food Spoilage
Tornadoes frequently destroy electrical infrastructure, leaving homes without power for days and causing food to expire. Standard homes insurance plans may cover damaged food if the cause is a covered risk under your policy. Nonetheless, coverage for ruined food may be restricted (for example, to $500). Many insurance companies provide food rotting coverage as an add-on.
Fallen Trees
The removal of fallen trees that do not cause damage to a residence is typically not covered by standard homeowner's insurance policies. If a tree falls on your house, however, your dwelling coverage should cover the cost of repairing your property as well as the cost of removing the tree, subject to the policy's limitations.
If a tree in your yard falls on your neighbor's house, the neighbor will almost certainly have to submit a claim under their dwelling insurance. However, depending on whether the harm was caused by negligence, this kind of circumstance might get complicated. If the tree was healthy, the damage would be classified as a "act of God," but if the trunk was decaying, the neighbor may claim carelessness and you could be held liable.
Named Storm Losses
Known storm deductibles may apply when losses occur as a consequence of a named storm, such as a hurricane or tropical storm. Named storm deductibles are in effect in 19 coastal states and the District of Columbia, according to the National Association of Insurance Commissioners.
Your policy's specified deductible amount is superseded by a designated storm deductible. Some homes insurance include a designated storm deductible that is a fixed money amount, while others compute the deductible as a percentage of your home's worth, generally 1 percent to 10%. For example, if your policy has a 10% named storm deductible and your house is worth $200,000, you may be responsible for up to $20,000 in out-of-pocket expenses in the event of a catastrophic loss.
How To File a Tornado Damage Claim
The steps for submitting a claim differ depending on the insurance company. Some insurance companies require you to phone an agent or a claims center to submit a claim, while others enable you to do so online or using a mobile app. However, after a tornado, there are several procedures that all homes should take.
- To begin the claims procedure, contact your insurance carrier as soon as possible.
- To support your claim, take photographs and videos of all losses.
- Take actions to prevent future damage to your home if it hasn't been entirely destroyed. Cover a minor hole in your roof with plastic sheeting to avoid water damage inside the house, for example. However, you should not undertake any substantial repairs until you have met with an insurance adjuster.
- If your home is destroyed by a tornado, check with your insurance company to see if your coverage covers loss of use costs.
- Keep meticulous records of all conversations with your insurance carrier.
Does Home Insurance Cover Damage to Cars?
Tornadoes may harm automobiles in a variety of ways. Trees can be blown onto automobiles by strong winds, and hail can slam into hoods and break windshields.
Your car will not be covered by your homeowner's insurance. Comprehensive vehicle insurance, on the other hand, covers damages caused by weather disasters such as tornadoes.
How To Prepare for a Tornado
Tornadoes obliterate everything in their path, but you can take steps to keep your family safe and the insurance claim process run smoothly.
- Keep track of your personal things and keep an up-to-date inventory. You may make a written inventory or use images or videos to document your belongings. The purchase price of each item, as well as receipts, should be included in the inventory.
- Tree limbs that hang over your house should be pruned, and dead or rotten trees should be removed.
- Make a shelter-in-place package that includes cleaning materials, a first-aid kit, prescriptions, non-perishable meals, and bottled water. Prepare a shelter-in-place kit for your pets as well as a pet evacuation kit in case you need to evacuate.
- Determine the safest location in your house. During a tornado, small, windowless interior areas, such as a bathroom or closet, are the safest places to be. Even better protection can be found in basements and subterranean storm shelters.
- Keep an eye on the weather forecast. Learn the warning signs of a tornado and remain up to date on weather updates if dangerous conditions emerge.
Frequently Asked Questions (FAQs)
What are loss of use coverage limits?
Loss of use coverage is normally calculated as a percentage of your dwelling coverage, which is usually 20%.
So, if you have $200,000 in dwelling coverage, your loss of use coverage might be $40,000.
Are hail and wind losses covered by all home insurance policies?
No. In places prone to hurricanes or tropical storms, some insurance exclude hail and wind losses. Insurers, for example, exclude these dangers for residences along the Texas coast. Texas coastal residents, on the other hand, can get hail and wind insurance via the Texas Windstorm Insurance Association.
