Posted on Monday, 11th April 2011 by
Tornadoes are affectionately called “wind events.” Unlike hurricanes and floods, evaluating covered tornado damage is rather easy to assess. Most good home insurance policies include coverage for wind damage.
See also: Common exclusions for homeowners insurance
When you compare home insurance rates, try to be sure wind damage is covered in your quote. When evaluating disaster insurance rates, look closely at:
Cost
Like many hurricane insurance rates, tornado and disaster insurance can be expensive. If you live in “Tornado Alley,” in the Midwest, you may gasp at the cost. Although no official definition of Tornado Alley exists, it is generally considered to include portions of Texas, Oklahoma, Kansas, Nebraska, South Dakota, and Colorado.
Deductibles
Some disaster coverage, particularly earthquake insurance quotes, have high deductibles. Recently, hurricane coverage in coastal areas follows this same path. Instead of stating pure dollars ($300, $500, etc.), deductibles can often be 10 to 15 percent of the loss amount. A major claim could still cost you thousands of dollars out-of-pocket.
Coverage limitations
Like other disaster insurance, tornado protection can include unwelcome limitations. When you compare home insurance quotes or quotes for insurance policies that cover for specific events (e.g. tornado insurance), look for limitations that have too many exclusions or capped claim payments. For example, in California, choosing basic earthquake coverage can come with a maximum $5,000 payment for your home contents.
If your homeowners insurance policy liberally covers wind damage, you may not need to investigate tornado coverage. Should you do so, review all insurance quotes carefully.
Tornadoes are a year-round threat
According to a report by the National Climatic Data Center, an official “tornado season” does not really exist, although the vast majority of tornadoes in the U.S. between 2003 and 2005 took place between April and July, with the two most active months being May and June.
However, despite certain months being more active than others, tornadoes are a year-round threat. For example, late summer can bring strong tornadoes into the upper Midwest and Ohio valleys. In addition, tornadoes that occur in the winter months are rare, but some strong ones have been documented.
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Tags: Insurance, Tornado Insurance
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