Your homeowners’ insurance policy is the most important way to protect your home and personal property from unexpected damage. However, if you’ve been researching policies (or have just looked closely at your own), you already know that the standard homeowners insurance policy doesn’t cover quite as much as most people think.
Windstorms can cause devastating damage to homes, so you might wonder — is tornado damage covered by home insurance? In most cases, the answer is yes. If your insurance company is refusing to pay for tornado damage that you believe should be covered, an experienced insurance lawyer may be able to help.
Does Homeowners Insurance Cover Tornado Damage in Florida?
Wondering if your homeowners’ insurance policy will cover tornado damage? Broadly speaking, the answer is yes.
There are many different types of home insurance policies, but the most common one is known as an “HO-3.” This type of policy is known as an “open peril” policy, which means it covers all damage to the home except damage caused by certain excluded perils. Most home insurance companies will not pay for damage caused by these perils:
- Flooding
- Earthquakes
- Sinkholes
- Damage from war
- Sewer backups
- Damage from normal wear and tear
- Damage due to insufficient maintenance
However, if you live in an area that’s very prone to tornadoes (like the coast between Tampa Bay and Fort Myers), your insurance company may exclude coverage for wind damage to minimize how much it pays out in claims each year.
If your homeowners insurance policy excludes wind damage coverage, you may be able to purchase either a separate policy or an insurance rider.
If a Policy Covers Tornado Damage, Does It Cover All Damage From the Tornado?
It’s a common misconception that if your homeowners’ insurance covers damage from a given type of storm, it must cover all damage stemming from that storm. Even if your tornado damage insurance covered most of your claim, your policy exclusions still apply.
For example, imagine your home is right in the path of a tornado. The wind smashes your windows, your basement floods, and a tree falls on your house.
Because your policy covers windstorm damage, your policy should pay to replace the broken windows. However, although the basement flooding happened due to tornado-associated rain, it doesn’t change the fact that your policy excludes flood damage.
The insurer’s investigation of your claim will determine whether it covers the damage caused by the fallen tree or not. The wind caused the tree to fall, so your roof damage will probably be covered.
However, there is a possible exception. The insurance company will likely send a claims adjuster to inspect the damage. If the adjuster examines the tree and discovers that the trunk was completely rotted, the insurer might say that because the tree was a danger that should have been removed long ago, it won’t cover the loss.
What Types of Insurance Coverage Apply to Tornado Damage?
Is tornado damage covered by home insurance? The answer to that question is often more complex than it seems. The standard homeowners insurance policy is made up of several separate types of coverage. Here’s a look at how each one may relate to tornado damage.
Dwelling Coverage and Other Structure Coverage
If you’re wondering what insurance covers tornado damage, dwelling coverage is probably the most important. This coverage pays to repair damage to your home’s structure. It often will also cover attached structures (like garages) and some other structures (like storage sheds).
Most of the time, dwelling coverage extends to damage caused by tornadoes and other windstorms. However, in high-risk areas, you might have a separate wind deductible.
Personal Property Coverage
Any disaster that damages the structure of your home will almost certainly damage at least some of its contents. Nearly all homeowners’ insurance policies include personal property coverage, which will pay to repair or replace furniture, electronics, jewelry, and other belongings up to your policy limit.
Additional Living Expenses (ALE) Coverage
If your home is damaged or destroyed in a tornado, your home insurance should pay to make repairs or rebuild. But what about your living costs in the meantime? If your policy includes additional living expenses coverage (ALE), it could potentially save you thousands of dollars.
ALE coverage will pay for you to stay in a hotel if your home is uninhabitable after the storm. It will also generally reimburse you for restaurant meals, non-perishable food, incidental expenses, and even boarding your pet.
How Wind Deductibles Affect Tornado Damage Claims
You may hear people use the terms windstorm insurance vs. tornado coverage. Insurance companies tend to lump tornadoes and other windstorms together under “windstorm coverage.”
In areas prone to tornadoes and hurricanes, insurance policy terms commonly include separate “wind deductibles.” If your home is damaged by high winds, you must meet your wind deductible (not your regular deductible) before your insurance pays. Wind deductibles are usually between 1% and 5% of your home’s total value.
Here’s an example. Imagine your home is worth $200,000. Your wind deductible is 1% of the total value, or $2,000. Your policy’s general deductible is $500.
A tornado hits and causes $10,000 worth of damage. You file a tornado insurance claim, and fortunately, your insurance company approves it. You pay the $2,000 wind deductible, and your insurance company covers the remaining $8,000 in damage.
Filing a Tornado Damage Claim: What Homeowners Should Know
Like many natural disasters, tornadoes often strike with little or no warning. It can be helpful to understand the claims process beforehand. Here’s a quick overview of how it works:
1. Contact Your Insurer Immediately
You don’t have to have all of your evidence ready to start filing your claim. As soon as possible after the storm, you should start the claims process by calling your insurer or going online.
2. Document All Damaged Property
Documentation is an essential part of any claim, so you should be as thorough as possible. Photograph all damage (from multiple angles, if possible) and save the photos in a safe place. You should also list damaged or destroyed personal items and their approximate values.
3. Make Short-Term Repairs
After documenting the damage, board up windows, remove standing water, and take other steps to protect the property from further damage.
4. Cooperate With the Adjuster
Once you file your claim, your insurer should send an adjuster to inspect the property. Do your best to cooperate with the investigation. If you disagree with the adjuster’s assessment, there’s nothing wrong with politely saying so.
Common Challenges in Tornado Damage Claims
As you may have already discovered, tornado insurance claims don’t always progress smoothly. These are some potential challenges you may encounter:
Too-Low Settlement Offers
Chances are good that even if your insurance provider approves your claim, it will likely try to underpay your claim at first. Showing repair estimates and anything else that backs up your claim’s worth can help. However, if the insurance company refuses to budge, it may be time to contact an attorney.
Protecting Your Home From Further Damage
You likely already know that if your home is damaged in a natural disaster, you shouldn’t make permanent repairs before your insurance adjuster has a chance to inspect it.
However, your insurance contract also requires you to take steps to limit the damage to your home. As soon as possible, you should cover holes in the roof, board up windows, and otherwise shield your home from further weather damage. You should keep all receipts and submit them with your claim.
Unreasonable Delays
After a major disaster, it might take longer than usual for an insurance company to approve claims. However, some unethical insurance companies will deliberately drag out the claims process. They have a few reasons for doing this:
- Some homeowners may simply give up
- The longer the insurer holds onto its money, the more interest it earns
- Homeowners may be more willing to accept lowball settlements after a delay
If your homeowners’ insurance takes a very long time to get back to you (or if it engages in other delay tactics like repeatedly asking for unnecessary documentation), it may be worth consulting a bad faith insurance lawyer for advice.
Coverage Disputes
Can homeowners’ insurance deny tornado damage? In some cases, you might submit a claim you’re sure is covered, only to have your insurance company tell you it isn’t. In some cases, the insurer may be telling the truth. However, some insurance companies will deliberately misconstrue policy terms to make policyholders think a loss isn’t covered.
If your insurance company is denying what you think should be a covered loss, it’s worth asking an insurance lawyer to review your claim.
Tornado Insurance Tips for Florida Homeowners
Florida might be better known for hurricanes than for tornadoes, but that doesn’t mean you shouldn’t be prepared. Here are a few tips for making sure your home is as protected as possible in the event of a tornado.
1. Know Your Wind Damage Coverage
Insurance policies differ in the way they cover damage from tornadoes, hurricanes, and other windstorms. Whether you already have a policy or are in the process of buying a new one, understanding the way your policy does (or doesn’t) cover wind damage is essential.
2. Consider Actual Cash Value (ACV) vs. Replacement Cost Coverage
Many people don’t consider this important point when selecting insurance. Dwelling insurance is usually on a “replacement cost” basis, which means it pays enough to rebuild your home or the portion that was damaged.
However, most standard insurance policies cover personal belongings on an actual cash value (ACV) basis. This means that insurance will only pay what the property is currently worth, not what it would take to replace it.
Premiums for replacement cost coverage might be higher, but this coverage can save you money if you’re hit by a tornado. For example, imagine your refrigerator is destroyed after a tornado. You bought it new for $1,400 several years ago, and now comparable models sell for $2,000.
Your insurance company says the fridge has depreciated and is only worth $500. This means that if you have actual cash value coverage, you might have to pay the remaining $1,500 out of pocket to purchase a comparable fridge.
3. Take Steps to Reduce the Risk of Non-Covered Damage
If flooding during a tornado is a concern, it’s worth seeing what you can do to protect your home. Your homeowners policy likely doesn’t cover flooding, but you may be able to purchase federally sponsored flood insurance.
Alternatively, you may be able to waterproof your basement, install specialized drainage systems, or otherwise make it less likely that heavy rains will result in flooding.
4. Have a Home Inventory Ahead of Time
After a tornado, it can be difficult to identify all of the items that have been lost or destroyed. It can be very helpful to make a list of your personal property and its approximate value. If you have receipts, include these as well.
Need Help After Tornado Damage?
The fact that the answer to “Is tornado damage covered by home insurance?” is “yes” doesn’t necessarily mean filing a claim — and having it paid — is going to be easy. The insurance industry is infamous for denying and underpaying claims to maximize its own profits.
Unfortunately, many homeowners never get the settlement they deserve because they don’t know that an attorney can help.
The team at Kennon Law is dedicated to holding insurers accountable and advocating for consumers to receive the insurance claim coverage they’ve paid for. We have more than 100 years of combined experience, and we have recovered more than $100 million from insurance companies.
If your insurance company is refusing to cover tornado damage, is insisting on underpaying your claim, or is delaying the process unreasonably, we may be able to help. Get in touch with us today to book your free consultation.
