Does Homeowners Insurance Cover Tornado Damage?

Does Homeowners Insurance Cover Tornado Damage?

Yes, standard homeowners insurance policies typically cover your home and personal belongings when they're damaged by tornadoes. These policies also pay for temporary living expenses if you're displaced from the storm.

However, you'll need to check your policy for coverage details. Some policies exclude wind coverage if you live in an area prone to tornadoes and other windstorms.

It's also important to understand home insurance policies rarely cover flooding caused by tornadoes. Because tornadoes are often accompanied by heavy rains, this could pose a problem. But you can buy flood insurance if you're concerned about flood damage to your home.

Learn more: What Is Not Covered by Homeowners Insurance?

Is There a Deductible for Tornado Damage?

You may have to pay a separate, higher deductible if you file a claim for tornado damage. Compare providers to learn which ones cover tornado damage and what your required deductible might be.

Types of Coverage for Tornado Damage

A standard homeowners insurance policy usually includes the following types of coverages for tornado damage:

Dwelling (Coverage A)

Dwelling coverage pays to repair or replace the physical structure of your home up to your coverage limit. This coverage also applies to structures that are attached to your property, such as a deck or a garage.

Homeowners usually buy enough coverage to rebuild the home if it's completely destroyed in a disaster.

Other Structures (Coverage B)

Your other structures' coverage pays to repair or replace structures that aren't attached to your home, such as a gazebo, shed or fence.

Coverage limits for your "other" structures are often set at 10% of the amount you have in dwelling coverage.

Personal Property (Coverage C)

Your homeowners insurance policy also covers items inside your home, such as furniture, clothing and electronics. These items can be repaired or replaced if they're damaged by the windstorm.

Coverage is usually calculated as a percentage of your dwelling insurance. The percentage can vary with each company and policy, but it often ranges from 50% to 70% of the insurance you have on your structure.

Loss of Use (Coverage D)

This type of insurance pays for lost income if you typically rent out part of your home, as well as the costs of temporarily relocating after a covered event. For example, you may need to live in a hotel and pay for restaurant meals while your home is being rebuilt.

You'll have dollar limits for your loss of use coverage in addition to time limitations.

Learn more: How Much Homeowners Insurance Do You Need?

How to File an Insurance Claim for Tornado Damage

Follow these steps to file a home insurance claim after a tornado:

1. Document the damage. Walk through the property (if it's safe) and make a list of damage to your home, detached structures and your personal belongings. Take photos and videos of the damage.
2. Prepare questions for your insurer. You'll need to confirm a few details when you speak with the insurance company. Ask whether you have coverage, the deadline for filing the claim, an estimate on how long the claims process will take and whether you need to gather repair estimates.
3. Contact your insurance company. A representative can answer your questions and guide you through the claims process, which you can typically complete online, over the phone or in a mobile app. You'll usually need to fill out a form and submit your documentation.
4. Make temporary repairs if needed. You may need to make temporary repairs to prevent further damage and keep the home safe. Keep receipts for related repair expenses, like materials and labor.
5. Prepare for the adjuster's visit. An insurance adjuster should come to your home to complete an inspection and calculate the amount of damage to your property. Be prepared to show them any damage and answer questions.
6. Hire contractors for permanent repairs. Once the adjuster has completed their review, you can hire a professional to make repairs. The insurance company may either pay the provider directly or reimburse you for costs you incur, up to your policy limits.

Learn more: Most Common Homeowners Insurance Claims

Frequently Asked Questions

The Bottom Line

Home insurance can financially protect you after a covered incident, which typically includes tornadoes. Your policy may pay to repair or replace your damaged property and personal belongings. It may also pay for living expenses when you're temporarily displaced after one of these storms.

In addition to safeguarding your property, it's also important to protect your credit after a natural disaster. Your credit may be affected if you're unable to pay your bills or you need to use credit cards to make necessary purchases. You may also be at risk of disaster fraud, which occurs when individuals take advantage of survivors through scams and identity theft.

Reviewing your credit reports, checking your credit score, and contacting your lenders and card issuers before you miss a payment are a few steps you can take to keep your credit healthy in the aftermath of a storm.