8244 Kennedy Ave, Highland IN 46322 |
 
 
Follow us On:
 
 
 
 
lanternman
 
Home of Lanternman, your insurance superhero.
Call Your Nearest Location
 
 
 
 
 
Homeowners Insurance and Liability Coverage: What You Need to Know > Insuring What You Own Against Tornadoes

Insuring What You Own Against Tornadoes

Share on Facebook
Tweet
Although tornadoes vary in intensity, the financial losses to victims can be devastating. Fortunately, having the right types of insurance coverage helps restore your life back to normal following the destruction a tornado leaves behind.
While you don't need special tornado insurance, you do need to make certain that your standard home insurance policy and current auto policy are enough to cover the damage.

Tornado Risk
Tornadoes can occur anywhere in the United States but are more common in certain regions including the Midwestern states, Mississippi Valley, northern Great Plains area and the southern United States.

If you live in an area where tornadoes are a risk, you'll need insurance to help cover the loss should disaster strike. For starters, a home insurance policy that covers wind events, including tornadoes.

Home Insurance Coverage
If you live in a tornado-prone region of the country, you need home insurance that helps cover damage to your home and the loss of personal property.

State and federal programs often offer disaster assistance in the form of low-interest loans in areas ravaged by tornadoes, but without home insurance, you aren't likely to get enough money to replace everything you've lost. Therefore, there are several factors to consider when buying home insurance.

Replacement Cost
Although insuring your home for the amount it would take to rebuild it instead of insuring it for its current market value increases your premiums, it's important to have adequate coverage.

Even if a tornado leaves your home standing, winds, rain and flying debris can do serious damage. However, if you are under insured, you may fall short of what it costs to repair the damage or replace all that you've lost.

While replacement cost does not deduct depreciation costs for age when you insure the structure of your home, your policy may limit the payout to a specific dollar amount. If you worry that you'll need more, extended replacement cost offers additional coverage beyond the limit set in your policy. This can give you extra cash you may need to meet rising construction and labor costs in a disaster-stricken area.

Content Insurance
Your home may receive extensive damage or be destroyed if it lies in the direct path of a tornado, but the contents inside your home are at risk too. You will have to spend a lot of money to replace everything you lose. That's why your home insurance policy should include plenty of personal property coverage.

Insuring your home's contents for replacement value costs more, but it will give you the money you need to replace damaged or lost possessions with new items of similar kind and quality. In contrast, actual cash value coverage reimburses you for the loss of personal property at depreciated value. In other words, the insurer only reimburses you a percentage of what an item originally cost.

If you're worried that a loss exceeds your policy's coverage limits, you can increase the coverage limit for your personal property. You can also add an endorsement that provides extra coverage for valuables for which your existing home insurance policy provides only limited coverage.

Loss-of-Use Coverage
If your home is destroyed or incurs serious enough damage, you may have to live somewhere else temporarily while your house is being rebuilt or repaired. Loss-of-use coverage helps pay for additional living expenses such hotel bills, eating out or paying rent during the time you are displaced.

Read your home insurance policy carefully as many insurers place limits on how long they will reimburse you for these costs. Generally, there is also a dollar limit on how much an insurer will pay out.

Some insurance companies may pay a flat dollar amount; others offer a percentage of the limit for which you have your home insured. In either case, your insurance company will continue to pay for additional living expenses until your home is repaired, you move to a new permanent address or you use up the limit stated in your policy, whichever occurs first.

Auto Insurance Coverage
Tornado damage to your home isn't your only concern. High winds and falling trees can damage vehicles. Consequently, you need comprehensive auto insurance to cover damage to your vehicle that a tornado causes.

Although comprehensive insurance generally is an optional coverage, it covers damage to your vehicle that isn't due to a collision. Comprehensive insurance covers wind damage — even wind from a tornado that tosses your vehicle or causes damage from flying debris.

The cost of comprehensive insurance depends on your driving history, a vehicle's value and the amount of the deductible you choose. If your policy has a deductible, that deductible is separate from the deductible you pay for collision insurance.

When you are uncertain about how to insure all that you own, the insurance agents at the Crowel Agency, Inc. can help you make sure that you are insured against the hazards for which your property is most at risk.



Insuring What You Own Against Tornadoes > Insuring What You Own Against Tornadoes

Insuring What You Own Against Tornadoes

Share on Facebook
Tweet
Although tornadoes vary in intensity, the financial losses to victims can be devastating. Fortunately, having the right types of insurance coverage helps restore your life back to normal following the destruction a tornado leaves behind.
While you don't need special tornado insurance, you do need to make certain that your standard home insurance policy and current auto policy are enough to cover the damage.

Tornado Risk
Tornadoes can occur anywhere in the United States but are more common in certain regions including the Midwestern states, Mississippi Valley, northern Great Plains area and the southern United States.

If you live in an area where tornadoes are a risk, you'll need insurance to help cover the loss should disaster strike. For starters, a home insurance policy that covers wind events, including tornadoes.

Home Insurance Coverage
If you live in a tornado-prone region of the country, you need home insurance that helps cover damage to your home and the loss of personal property.

State and federal programs often offer disaster assistance in the form of low-interest loans in areas ravaged by tornadoes, but without home insurance, you aren't likely to get enough money to replace everything you've lost. Therefore, there are several factors to consider when buying home insurance.

Replacement Cost
Although insuring your home for the amount it would take to rebuild it instead of insuring it for its current market value increases your premiums, it's important to have adequate coverage.

Even if a tornado leaves your home standing, winds, rain and flying debris can do serious damage. However, if you are under insured, you may fall short of what it costs to repair the damage or replace all that you've lost.

While replacement cost does not deduct depreciation costs for age when you insure the structure of your home, your policy may limit the payout to a specific dollar amount. If you worry that you'll need more, extended replacement cost offers additional coverage beyond the limit set in your policy. This can give you extra cash you may need to meet rising construction and labor costs in a disaster-stricken area.

Content Insurance
Your home may receive extensive damage or be destroyed if it lies in the direct path of a tornado, but the contents inside your home are at risk too. You will have to spend a lot of money to replace everything you lose. That's why your home insurance policy should include plenty of personal property coverage.

Insuring your home's contents for replacement value costs more, but it will give you the money you need to replace damaged or lost possessions with new items of similar kind and quality. In contrast, actual cash value coverage reimburses you for the loss of personal property at depreciated value. In other words, the insurer only reimburses you a percentage of what an item originally cost.

If you're worried that a loss exceeds your policy's coverage limits, you can increase the coverage limit for your personal property. You can also add an endorsement that provides extra coverage for valuables for which your existing home insurance policy provides only limited coverage.

Loss-of-Use Coverage
If your home is destroyed or incurs serious enough damage, you may have to live somewhere else temporarily while your house is being rebuilt or repaired. Loss-of-use coverage helps pay for additional living expenses such hotel bills, eating out or paying rent during the time you are displaced.

Read your home insurance policy carefully as many insurers place limits on how long they will reimburse you for these costs. Generally, there is also a dollar limit on how much an insurer will pay out.

Some insurance companies may pay a flat dollar amount; others offer a percentage of the limit for which you have your home insured. In either case, your insurance company will continue to pay for additional living expenses until your home is repaired, you move to a new permanent address or you use up the limit stated in your policy, whichever occurs first.

Auto Insurance Coverage
Tornado damage to your home isn't your only concern. High winds and falling trees can damage vehicles. Consequently, you need comprehensive auto insurance to cover damage to your vehicle that a tornado causes.

Although comprehensive insurance generally is an optional coverage, it covers damage to your vehicle that isn't due to a collision. Comprehensive insurance covers wind damage — even wind from a tornado that tosses your vehicle or causes damage from flying debris.

The cost of comprehensive insurance depends on your driving history, a vehicle's value and the amount of the deductible you choose. If your policy has a deductible, that deductible is separate from the deductible you pay for collision insurance.

When you are uncertain about how to insure all that you own, the insurance agents at the Crowel Agency, Inc. can help you make sure that you are insured against the hazards for which your property is most at risk.