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Tornadoes & Home Insurance: Don't Get Swept Up in Disaster




Have you ever seen a tornado sweep through a town? It is an incredibly destructive force. In videos, one can view the awe-inspiring decimation and wind as it eats a path and clears anything in or near it. A lush, green pasture becomes a barren wasteland. Cars, houses, trees, and anything else in its path disappear.


If you live in “Tornado Alley” states like Northern Texas, Oklahoma, Kansas, Missouri and parts of Louisiana, Iowa, Nebraska and Colorado then you know all too well how vulnerable you and your family are to these yearly destructive forces. The average cost to a homeowner who has been affected is between $4,500 and $17,000. Imagine if you were in the direct path and your home was destroyed. The smaller “Dixie Alley” adds Arkansas, Georgia and Alabama to the mix as well. Plus, climate change is rendering even more folks susceptible to these natural disasters. read more here. If you live in these states, then you have to protect yourself and your belongings the best way possible with insurance.


Sadly, the reality is that when you live in these vulnerable areas, you have to think about a lot of additional issues to sleep soundly at night. You need to be sure that you have good health insurance just in case that you or someone you love is injured during a tornado. You need increased insurance on your home to cover tornado damage because average home insurance does not. Plus, you have to think about your vehicles and how to make sure that you are protected from the loss or damage that could take that vehicle away, literally to the tree next door. A comprehensive coverage plan needs to be added.


Most damage during a tornado is from wind that is so powerful that it can uproot trees that have stood for hundreds of years with strong roots that run deep. So, imagine what it can do to your windows, siding, and roof, not to mention umbrellas, patio furniture, barbecues, bikes, and lounge chairs. All become projectiles that can cause damage and even destroy neighborhoods.


Average home insurance in these areas will not cover tornado damage; you need to add a policy to cover that damage. That runs around $1,100 a year. These policies usually cover wind, falling objects, hail and water damage. An HO-3 policy, which is the most popular type of home insurance, will cover all dangers except any that are specifically excluded in the policy. This is the best way to protect the structure of your home. Some, if not all, have a windstorm deductible that is 2% of the value of your home. So, for example, a $300,000 home has a $6,000 out of pocket fee over the deductible out of pocket on the insurance. Actual Cash Value (ACV) is also something to look for in a policy. This is the coverage to your goods that have been damaged. If a roof has been damaged, they will assess the condition of that roof and cover that cost according to the assessment. Therefore, a 30 year old roof will not be covered like a new roof in great condition. That means that you get less money back and will pay more out of pocket for that new roof.


In areas of strong vulnerability, having a shelter is a must. Building them yourself will save hundreds if not thousands of dollars. The average cost is $6,500 and can go to $30,000, depending on the size and amenities that you need to have. A preferable solution would be a home with an already existing basement that you can retrofit to meet your safety needs.


Remember that preparedness is the best defense against nature and its destructive energy. Do the heavy lifting and get adequate coverage before tragedy strikes. Let Insuravita help you find quotes to prepare and save. Click here to compare quotes today.


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