Does Homeowners Insurance Cover Tornado Damage?

Tornadoes are becoming more common, according to the National Oceanic and Atmospheric Administration. The administration reported 197 tornadoes in the United States in 1950, and nearly 1,500 in 2019.

A tornado's force can level an entire town, leaving homes and businesses in ruins. Certain precautions can be taken to keep your family safe during a tornado, but the best way to protect your home is to purchase a homeowners insurance policy with adequate coverage. The second best option is to learn about your policy and how it works.

Tornado protection is provided by standard home insurance, but you may need to adjust certain coverage limits for maximum protection.

Does Home Insurance Cover Tornado Damage?

Most standard home insurance policies cover damage to your home, other structures, and personal property caused by "covered perils." A covered peril is another term for what causes the damage (such as wind).

Home insurance may also help pay for the loss of use of your home (for example, if it becomes uninhabitable) as well as your personal liability (if someone gets hurt on your property). Most policies cover losses caused by tornado-related perils like falling objects, hail, lightning strikes, water damage, and wind. Some policies also cover damage from power surges, which can happen during tornadoes.

What’s Covered?

A homeowners insurance policy is a set of coverages. Individual coverages will apply to different types of losses following a tornado. Most types of insurance have a deductible, which is the amount of money you are responsible for paying toward losses.

Dwelling Coverage

Dwelling coverage pays to repair or rebuild the main structure of your home as well as any attached structures, such as a garage. For example, if a tornado destroys your home's roof, the dwelling coverage in your policy will help pay to replace it.

Your policy should include enough dwelling coverage to rebuild your home completely. To cover the total replacement cost of damages, some insurers require policyholders to carry dwelling coverage equal to at least 80% of a home's rebuild costs—even if that amount is less than your coverage limit.

Other Structures Coverage

Other structures coverage pays for the repair or replacement of detached structures such as fences, garages, gazebos, or sheds. The amount of this coverage is usually determined by the amount of insurance on your primary residence—most standard policies limit it to 10% of that amount. So, if your primary residence is insured for $300,000, your insurance policy will cover damage to other structures up to $30,000.

Personal Property Coverage

Tornadoes can devastate a home, destroying personal items such as clothing and furniture due to water damage and toxins released by destroyed building materials. Personal property coverage assists in the replacement of personal items up to the policy's limits.

For personal property losses, many standard home insurance policies only pay a depreciated value. For example, if you paid $600 for a television five years ago, an insurance company might value it at $150 today.

However, some homeowners policies include personal property replacement cost coverage or offer it as an endorsement. Replacement cost coverage compensates you for the cost of replacing your personal belongings at current market prices.

Loss of Use Coverage

If tornado damage renders your home uninhabitable, loss of use coverage can assist you in covering additional living expenses such as hotel bills, rent, and restaurant tabs. This coverage is also limited by the amount of insurance you have on your primary residence, which is typically 20% to 30% of the total.

Other Considerations

A standard homeowner's policy may not cover all tornado-related losses. Trees and vehicles can become projectiles as a result of a tornado's destructive force, damaging your home or the homes of your neighbors.

You may not always know which party's insurance should cover damages or even what type of insurance should. As a result, it's critical to gather any evidence you have, such as photographs and eyewitness accounts, as soon as possible after the damage has occurred.

Food Spoilage

Tornadoes frequently damage electrical infrastructure, leaving homes without power for days and causing food spoilage. Standard homeowners insurance policies may cover spoiled food if the cause of spoilage is a covered peril under your policy. Even so, coverage for spoiled food may be limited (for example, to $500). Many insurance companies provide optional food spoilage coverage.

Fallen Trees

Standard home insurance policies typically do not cover the cost of removing fallen trees that do not cause damage to a home. If, on the other hand, a tree falls on your house, your dwelling coverage should pay to repair your home as well as remove the tree, up to the policy's limits.

If a tree in your yard falls on your neighbor's house, the neighbor will almost certainly have to file a claim under their dwelling coverage. However, depending on whether the damage was caused by negligence, this type of scenario can become complicated. For example, if the tree was in good condition, the insurer would consider the damage an "act of God," but if the trunk was rotten, the neighbor could claim negligence and you could be held liable.

Litigation can result from negligence. If a neighbor sues you for damages caused by a downed tree, your homeowners policy's personal liability coverage may cover legal fees.

Named Storm Losses

Named storm deductibles may apply when losses occur as a result 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.

A named storm deductible takes precedence over the stated deductible amount in your policy. Some homeowners policies have a fixed-dollar named storm deductible, whereas others calculate the deductible as a percentage of the home's value, typically 1% to 10%. For example, if your policy has a 10% named storm deductible and your home is worth $200,000, you will be required to pay up to $20,000 out of pocket in the event of a total loss.

How To File a Tornado Damage Claim

The procedures for filing claims differ depending on the insurance company. Some require you to contact an agent or a claims center, whereas others allow you to file a claim online or via a mobile app. However, there are some steps that all homeowners should take following tornado damage.

• To begin the claims process, contact your insurance company as soon as possible.
• To support your claim, take photos and videos of all losses.
• Take precautions if your home has not been completely destroyed. Cover a small hole in your roof, for example, with plastic sheeting to prevent water damage inside your home. However, don't make any permanent repairs until you've met with an insurance adjuster.
• If a tornado destroys your home, check with your insurance company to see if your policy covers loss of use expenses.
• Keep meticulous records of all conversations with your insurance company.

Does Home Insurance Cover Damage to Cars?

Tornadoes can cause a variety of vehicle damage. High winds can cause trees to fall on cars, and hail can damage hoods and smash windshields.

Your homeowners insurance will not cover vehicle damage. Comprehensive auto insurance, on the other hand, covers losses caused by weather events such as tornadoes.

How To Prepare for a Tornado

Tornadoes destroy everything in their path, but there are precautions you can take to keep your family safe and the insurance claim filing process running smoothly.

• Keep an accurate inventory of your personal belongings. You can keep a written inventory or photograph or videotape your belongings. The purchase price of each item, as well as receipts, should be included in the inventory.
• Remove dead or rotting trees and trim tree limbs that hang over your house.
• Make a shelter-in-place kit that includes cleaning supplies, a first-aid kit, medications, nonperishable foods, and bottled water. Prepare a shelter-in-place kit for your pets as well as a pet evacuation kit in case you need to leave the house.
• Determine the safest location in your home. During a tornado, small, windowless interior spaces, such as a bathroom or closet, are the safest places to be. Basements and underground storm shelters offer even more security.
• Pay attention to the weather. Familiarize yourself with tornado warning signs and stay up to date on weather reports when threatening conditions appear.