Publish Date: June 2016
Wind from a tornado can quickly cause devastation, and often without warning. Do you know if your homeowners insurance would provide coverage if your home is damaged by a tornado? The answer may vary by region, the type and amount of coverage you have in place, and what causes the damage. Here are some things to consider about homeowners insurance and coverage for tornado damage.
Homeowners insurance typically covers certain perils, such as wind and hail. If your policy covers those risks, you’ll likely find that dwelling coverage may help pay to repair or rebuild your home, while personal property coverage may help pay to repair or replace damaged or destroyed belongings that were inside the home. Your deductible is typically subtracted from the amount your insurance pays toward a covered loss.
If your policy includes coverage for wind and hail damage, it’s important to remember that limits — the maximum your policy will pay toward a covered loss — will apply. Your local agent can help you review your coverages so you can determine whether you have enough coverage in place to help you repair or rebuild your home.
Some policies may exclude coverage for damage caused by wind or hail. In those circumstances, homeowners insurance probably would not cover a loss resulting from a tornado. Be sure to read your homeowners insurance policy to learn what risks it may or may not cover.
While tornadoes can be accompanied by heavy rain, it's important to understand that homeowners insurance policies generally do not provide coverage for flood damage. So, even if your policy offers protection against wind, damage caused by flooding likely would not be covered. You may be able to purchase a separate flood insurance policy through the National Flood Insurance Program.
However, if rain water gets into your home because your roof was damaged by wind, you may find that homeowners insurance offers some protection — but only if your policy includes coverage for wind.
Read your policy or contact your local agent with any questions about what your homeowners insurance policy may or may not cover in the event of a tornado.