Does homeowners insurance cover tornado damage?

How homeowners insurance covers tornado damage

Most standard homeowners insurance policies cover damage caused by strong winds and tornadoes — unless your insurance policy specifically excludes wind damage. It’s important to note that flooding, which could accompany storms that produce heavy rains and tornadoes, requires separate coverage.

There are three primary coverage types on a home policy that may apply to tornado damage:

• Dwelling coverage provides coverage for the structure of your home and any attached structures, such as decks or attached garages.
• Personal property coverage covers your personal belongings should they be damaged or destroyed.
• Loss of use coverage helps pay for temporary housing and other expenses, like laundromats and food costs, if you cannot live in your home after a covered loss.

While tornadoes are generally included in standard homeowners policies, this also means that policies for homes in areas with a high risk of tornadoes will likely see elevated premiums due to the higher risk of claims. This coverage is also commonly included in renters insurance policies for personal possessions.

Understanding home coverage for tornadoes

With tornadoes happening in so many states and being capable of causing so much damage, ensuring your home is financially protected from these perils can be essential in safeguarding your home. While roof and siding damage may be more common, tornadoes have destroyed entire homes on several occasions. 

Most homeowners insurance policies include damage from the wind — which is the primary cause of tornado damage — as part of standard coverage. Homeowners can take the following steps to check that they are covered for tornado damage:

• Read your policy: Your insurance contract provides detailed information about your coverage types and limits. Familiarizing yourself with your policy can help you more quickly and effectively understand when you might want to file a claim.
• Talk to your agent: If you are unable to confirm that your policy covers tornado damage by reading the agreement, consider calling your agent or a representative from your insurance company. They should be able to advise how your policy would cover damage caused by a tornado.
• Add additional coverage: Although homeowners insurance policies generally cover wind damage, there may be situations where you have to add wind coverage separately as an endorsement or even by purchasing a separate policy. If your policy does not include wind coverage automatically, you may want to consider adding it. Home insurance policies in some tornado-prone states include a separate wind/hail deductible that would include tornado damage.

If you do need to add coverage for wind damage, it should be a relatively simple process. Your agent should be able to guide you through the process to obtain coverage for tornado damage.

If you are not satisfied with your policy, it might be a good time to look around at other insurers. It’s usually easy to obtain a quote either online or over the phone. It can be worth the effort to ask for quotes from several companies so you can compare them and determine which is the best fit for your needs.

The cost of tornado insurance

The average cost of homeowners insurance in the U.S. is $2,181 per year for a policy with $300,000 in dwelling coverage. This average can be helpful in getting a sense of what may or may not be a good deal when looking for insurance.

It’s important to note that standard policies include wind damage coverage and that these average rates may be close to what you pay or significantly different. Insurance premiums are calculated using a range of personal variables, often including age, marital status, ZIP code, credit history (in most states), home design and materials, size, roof age and condition, and more.

Tornado damage preparedness tips

Before a tornado strikes, there are a few things you can do to prepare. Most of these steps are best done well ahead of any storm threat and are not easily accomplished while sheltering from a tornado. You may have to wait until the event to gauge the strength of a tornado, but the other actionable steps should be followed well before tornado season starts. 

1. Check tornado strength

Understanding the strength of tornadoes, typically assessed by the Enhanced Fujita Scale ranging from EF0 (minimal damage) to EF5 (catastrophic damage), can guide homeowners in preparing their residences. Familiarity with the potential impact of various tornado intensities may help in deciding the necessary precautions, such as reinforcing structures in high-risk areas or securing outdoor items in regions less prone to severe tornadoes. 

While these measures could reduce damage, it's important to acknowledge that they might not fully safeguard against the unpredictable nature of tornadoes. No one can 100 percent predict the future intensity of tornadoes. If you are a homeowner that lives in an area prone to tornadoes, you should be prepared for the potential catastrophic impacts.

2. Itemize your possessions

Keeping an itemized inventory of your covered possessions can be a good idea even if you don’t live near the risk of tornadoes, but certainly if you do. Having a record of your belongings, their condition, and their value can make filing a claim on those possessions a much smoother process if that becomes necessary. Experts recommend storing these lists in a disaster-safe location like a fire-safety document box or somewhere off the property. 

3. Reinforce your windows and doors

Taking steps to secure your windows, doors and any other relatively easy point of access can help protect your home from wind damage and may even result in lower premiums with some carriers. Impact-resistant garage doors, storm shutters and even tie-downs can all help if installed or used correctly. It also helps to close all interior doors to contain air pressure in the home, which acts as a defensive line against impact from high winds on your roof, according to research from the Insurance Information Institute and Business & Home Safety (IBHS). How much safety these measures add will vary and strongly depends on the strength of the tornado as well as its size and proximity to the home.  

4. Reinforce your roof

Strengthening the roof structure is another essential strategy in preparing a home for potential tornado impacts. According to the Federal Emergency Management Agency, a roof is the first line of defense to prevent damage from the severe winds of tornadoes. This can often involve enhancing the connection between the roof and the walls with metal straps, using high-quality, impact-resistant roofing materials and ensuring that shingles are properly nailed down. Consider hiring a professional to reinforce your roof according to the FORTIFIED roofing standards certified by IBHS. 

These measures could help prevent the roof from being lifted off by powerful tornado winds, which is a common cause of extensive structural damage in homes. While reinforcing the roof may not fully safeguard against the most extreme tornadoes, it could significantly lessen the extent of damage and protect the home's overall integrity.

5. Create a plan

Creating an emergency plan and making sure that everyone in your household understands the steps can help you feel more prepared. Tornadoes can happen quickly, so knowing where your emergency supplies are, where to shelter and how to get information could help to keep you and your family safe. Designate a location where your family can meet in the event that you’re separated during the tornado. It may be helpful to choose a place away from your home.

6. Create an emergency kit

It may also benefit you to create an emergency kit, which should include first aid supplies and medications, non-perishable food and enough water for at least seven days. If you have pets, you may also want to include all veterinary records, medications, a leash or carrier and pet food. Keep these supplies in your safe place — like a basement or room with no windows — until needed.

What to do after a tornado hits

It’s easy to feel overwhelmed with everything you need to handle after a tornado strikes. To make the recovery process go more smoothly, it can help to review the damage and create an actionable list. Once it’s safe, tackle to-do items as soon as possible. It may be helpful to start by:

• Securing your property: Immediately following a tornado, it's important to secure your property to prevent further damage and deter unauthorized access. This may involve boarding up openings and covering exposed areas, which can also support your insurance claim.
• Assessing and addressing safety hazards: Safety is paramount. Before extensive assessment or recovery efforts, identify and mitigate immediate hazards like gas leaks or electrical issues to ensure the area is safe for you and others.
• Itemizing damage and losses: Once your property is safe and secure, document the extent of the damage by taking photos and making a detailed list of affected items and areas. This record is essential for tracking repairs and can be pivotal when filing an insurance claim.

How to file an insurance claim for tornado damage

The declarations page of your home insurance policy includes contact information for filling an insurance claim with your carrier as well as information on how to contact your insurance agent within that company directly. This is one way to start your claim. Many carriers also offer claim filing capabilities via their websites and mobile apps. If you are one of many people affected by a tornado or other damaging wind event, filing sooner may help your claim to be processed more quickly. 

1. Reach out to your insurer

Contact your insurance provider or agent to initiate a claim. Inform them of the damage using available filing methods — online, via app or by phone. Clear documentation of the damage will aid the adjuster's assessment and the claim process.

2. Stay in touch with your insurance adjuster

You will need to stay in regular communication with your claims adjuster to know what steps they need you to take in order to settle your claim. You may need to submit an estimate for the repairs, for example, or send in your home inventory for the items that are damaged. If you are not communicating clearly with your adjuster, the claims process could be slowed down.

3. Keep a record of recovery expenses

Document all expenses related to tornado recovery, including temporary repairs and any costs incurred if you need to relocate temporarily. These records may be eligible for reimbursement under your insurance policy.

4. Consult with professionals for repairs

For repair and restoration work, it's advisable to engage reputable professionals. Ensure the contractors are properly licensed and obtain multiple estimates to ensure fair pricing and quality work. You should also make sure your adjuster approves the contractor you are hiring. Many insurers have preferred networks of contractors and direct billing so the policyholder does not have to pay for repairs and get reimbursed. 

Avoid contractors or public adjusters that solicit your business, as many bad actors take advantage of storm victims.

5. Review and update your insurance coverage

After the recovery process, review your insurance experience and coverage. Adjusting your policy based on this experience can better prepare you for future events, close coverage gaps and provide peace of mind.

How do windstorm deductibles apply?

While windstorm damage is generally one of the named perils in standard homeowner policies, it does sometimes operate on its own deductible. This means that even if you filed a claim previously in the year and met your standard deductible, you may still have to meet a separate deductible when filing for wind or tornado damage. Not only that, but the way wind damage deductibles are calculated is also different.

Windstorm deductibles tend to use a percentage of the replacement cost value of the home (Coverage A) rather than a flat number. For instance, a 2 percent wind deductible on a $400,000 insured home would mean that the homeowner is responsible for a $8,000 deductible in the event of a wind damage claim.

The claims check will be for damage cost — up to the coverage limit — minus the deductible. The homeowner would need to pay that $8,000 out of pocket. It’s important to note that policyholders may be able to opt for lower wind deductibles — depending on the carrier — but that doing so will generally increase your policy premiums.

Frequently asked questions