Is Tornado Damage Covered Under Home Insurance

Is Tornado Damage Covered Under Home Insurance?

Will your home insurance cover the damage caused by a tornado in your area?

Tornado damage to your home is typically covered by most insurance companies. Tornadoes are a type of windstorm, so they are usually classified as wind damage, which is typically covered by a standard homeowner's insurance policy. Dwelling coverage protects your home from tornado damage by helping to pay for repairs or rebuilding if the wind from a tornado destroys your property.

According to the National Oceanic and Atmospheric Administration, May and June are historically the busiest months for storms. According to the NOAA, tornadoes can occur at any time of year, so there is no such thing as a tornado "season."

A tornado can wreak havoc in a matter of minutes for those unfortunate enough to be in its path, and the immediate reaction is often shock and confusion.

Tornadoes cannot be avoided, but experts say that taking a few minutes to familiarize yourself with your insurance coverage and make an inventory of your belongings will be invaluable.

How to File an Insurance Claim After a Tornado

1. Start Your Insurance Claim ASAP after a Tornado

Call your insurance company as soon as possible to begin processing your claim. It may appear daunting because it is unfamiliar territory to you, but it is not for your insurance company, according to Joe Woods, vice president of the American Property Casualty Insurance Association.

"Insurers are here to help in the recovery process and to help families and business owners file claims as soon as possible," he said. "We encourage owners to prioritize safety and report any claims as soon as possible in order to begin the recovery process."

According to Lynne McChristian, spokesperson for the Insurance Information Institute, make sure your insurer has your mobile number as well as another number where you can be reached. Get the phone number of your adjuster's manager as well.

"The adjuster may be out in the field, and if you can't reach him or her, having a backup number is critical," McChristian says.

2. Document Your Damage and Organize

Your life and home are in shambles, but don't start cleaning just yet. It is critical to first document and photograph the situation. Take pictures of the damage and make a list of what is destroyed or missing. McChristian recommends keeping all receipts in one place and writing down who you called, when you called, and their contact information in the future.

3. Keep out of the Tornado Damage if Possible

Cover holes, seal off broken pipes, and board up broken windows after taking photos of the damage. The adjuster may take several days to arrive, but you are responsible for minimizing future damage from the elements.

However, don't start making repairs or cleaning up before your adjuster arrives, advises Tina Nicholson, a lawyer who specializes in natural disaster insurance claims.

"A lot of people's first instinct is to clean up and throw things away right away," she says, adding that this may have an impact on the amount of your claim.

4. Find a Quality Home Repair Contractor

It may be tempting to begin the rebuilding process as soon as possible or to obtain a new roof at a steep discount. But, as is customary, if something appears to be too good to be true, it probably is. Choose a licensed contractor with references instead.

"I wouldn't necessarily rely on people who show up right after a disaster," says Quality Claims Management's Reitz. "They aren't always the most pleasant people."

How to Prepare Your Home for a Tornado

On the insurance front, the good news is that most homeowner policies cover tornado damage, even if they don't say so explicitly. According to Kevin M. Lynch, faculty instructor at the American College of Financial Services in Bryn Mawr, Pennsylvania, a policy does not use the term "tornado," but rather wind or windstorm damage.

Before a tornado warning is issued, insurance experts recommend the following precautions:

Examine your homeowners insurance policy and ask yourself the following questions:

Is your coverage enough in case your house is a total loss? This includes structural damage, which means you won't be able to enter your home safely again, as well as personal belongings.

Does the policy include your fence, azaleas or detached garage?

What’s covered varies from policy to policy, so read the policy. Does it cover outbuildings and landscaping?

Will you have to pay separate deductibles? Your roof may have a 1% deductible, while the rest of the house may have a 2% or 3% deductible.

Also, become acquainted with the "loss of use" coverage. If you are displaced, this will cover your rent, hotel, and other expenses. Loss of use is typically included in a homeowners policy and is also known as "additional living expense" coverage. Most policies cover temporary housing, meals, moving, and laundry expenses — but check your policy because this is important to know ahead of time.

Take a walk-through video inventory of the inside and outside of your property at least once a year. You may have more important things to do right now, but documenting everything you have may be well worth it, according to Ronald Reitz, CEO of Quality Claims Management, a public insurance adjuster company. And it's not just for financial reasons, he claims.

"Trying to go through your scattered and damaged possessions after a disaster is a very emotional process," he says. "Do it before you suffer a loss."