Tornado Insurance- What Policies Will Protect You?

Photo by Anne Hornyak

The rise of tornado activity across the United States has given everyone food for thought when it comes to tornado safety, recovery and preparedness. But what insurance policies would protect you or help you recover from tornado damage? There are several factors to consider when it comes to tornado damage and insurance. The following policies and coverage levels will vary with your insurance company especially if you live in tornado-prone states, so check with them after reading this article.

Tornado Recovery Funds

If you don’t have any policies that cover tornado damage, it is still possible to get money that can help you recover from a tornado disaster. If your area is classified as an emergency area by the Federal Government, FEMA can give you up to $30,000 to cover losses and home repairs. It does not have to be repaid.

If you qualify, you can also take out a small business loan from the Small Business Administration. You’ll have to repay it back but it’s a low-interest loan. If the loan is a large one they may take out a lien against your home until the loan is repaid.

Tornadoes and Homeowner’s Insurance

Homeowner’s insurance should cover most natural disaster events like tornadoes. But if you live in a high wind-prone or tornado-prone state, it may require a separate insurance policy. Don’t assume that everything’s covered! Another item to consider is liability coverage. Let’s say your home is acting as a shelter for neighbors and someone gets hurt. If you don’t have liability coverage, it could cause complications.  This article from CBS News shows that some states are at serious risk for losses. Arkansas is a top 5 state for people with no coverage, yet it’s also a top 10 state for being prone to tornadoes!

Wind Events and Tornadoes

Tornado damage can be considered a “wind event”, as described with some insurance companies. Remember, you have to prove that any damage you had was directly caused by tornado winds, such as having vinyl siding ripped off or doors/windows damaged by wind.  Look for the fine print. For example, wind can be blamed for broken windows, but if the rain poured in from the broken window and destroyed your TV, it may not be covered. If your homeowner’s insurance has a broad definition of wind damage, you may not need additional wind event coverage. But if it’s specific- and sometimes they can be- look into it.

Renter’s Insurance for Tornado Damage

Be advised that your landlord’s coverage does not automatically cover any losses you incur from tornado damage. You should get renters insurance if you haven’t already done so. Ensure you have proof of any valuable items, records of purchase for high-value items (like HDTVs and jewelry), and pictures.  Other factors to consider for renter’s insurance are “additional living expenses”.

Tornadoes and Flood Damage

Generally speaking, any flood damage not caused by man made events can be covered through flood insurance. So if a tornado came along with lots of rain, broke your windows and your house got flooded, you could be covered. But flood damage may not cover the costs of window repair.

Remember to keep checking our website for more up-to-date tornado and tornado safety information.