Does Homeowner's Insurance Cover Tornadoes?

Today's focus for Severe Weather Preparedness Week is on tornadoes.  Do you know if  homeowner's insurance covers tornado damage?

Most standard homeowner's insurance policies that include an "all-perils" coverage option typically cover damage caused by tornadoes.

BUT, there may be specific exclusions or limits in a homeowner's policy that could impact the amount of coverage available for tornado damage.
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For example:

- Some insurance policies may exclude coverage for damage to outdoor structures, such as sheds or fences, or for damage caused by fallen trees.

- There may be limits on the amount of coverage available for high-value items, such as jewelry or collectibles, that are damaged in a tornado.

- A higher deductible will increase the amount the policyholder must pay out of pocket in the event of a claim.
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- Reimbursement depends on whether coverage is based on actual cash value or replacement cost. Actual cash value factors in depreciation while replacement cost covers the cost of replacing items with similar kind and quality.

You should carefully review your homeowner's insurance policy with your insurance agent to:

- understand specifically what types of damage from tornadoes are and aren't covered
- review various coverage options
- confirm or adjust the level of coverage to ensure it's best for your current circumstances