Benchmark Agency Blog

Is Your Home Insurance Tornado Proof?

Unlike hurricane, earthquakes and floods, damage to your home caused by tornadoes is covered under a basic home insurance policy. What many homeowners discover too late, however, is that their traditional homeowners insurance package was insufficient to help them repair or rebuild following a severe tornado event.

Tornadoes are an extremely common natural disaster in the United States. According to the Disaster Prevention Organization, an average of 1,200 twisters touches down each year across the country. More than 200 people are killed each year in tornadoes and more than $1 billion in economic disruption and property damage is caused by these swirling columns of air and debris.

How can you avoid becoming one of the millions of homeowners who don’t discover their gaps in insurance coverage until the damage is already done? First, conduct a careful review of your existing home insurance policy. If your property has experienced any significant change in value since purchasing your policy, it may be in need of updating. Be sure your total insurance coverage limit is adequate to reimburse you the costs of completely rebuilding your home as tornadoes can level entire city blocks in minutes.

Second, take a look at the coverage options you initially chose. If your policy is 5-years-old or more, you may want to switch your personal property coverage from actual cash value to replacement cost. Actual cash value takes depreciation into account and will only compensate you for what your appliances and electronics are worth today. If your furnace, water heater and other big ticket items are approaching a decade or more of use, you may want the additional protection of replacement cost insurance coverage. This type of reimbursement ignores depreciation and can replace your old, damaged appliances with brand new ones of comparable features.

Finally, it’s a good idea to complete this review process with the guidance of our experienced, insurance agents. We can help identify any current gaps in your coverage and locate a number of quotes and coverage options from a variety of insurance companies with which you can compare your current policy. Contact us to help you find the perfect, tornado-proof home insurance policy that fits your needs and budget.

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