Tornadoes are among the most terrifying events anyone can experience. Keeping yourself and your family safe is of paramount importance, but if your home suffers major damage, you may be at a loss when it comes to knowing what to do next.
In the immediate aftermath of a tornado, you should monitor local news for continuing weather updates and reach out to friends and family to check-in. When it is safe to do so, you should inspect your home for damage and file an insurance claim if needed.
What Do I Do if My Home Is No Longer Safe to Live In?
Once the threat of tornadoes has ended, you can carefully walk through your home to look for damage. Thoroughly document any damage you find with photos or videos — the strength and quantity of your evidence will make a major difference in the success of your insurance claim.
If your home is unsafe for you to live in, you first must find somewhere for you and your family to stay in the immediate future. Local governments will often open temporary shelters for those displaced by tornadoes. Two nationwide organizations offer on-site disaster services as well: the American Red Cross and the Federal Emergency Management Agency (FEMA).
American Red Cross
The American Red Cross provides free shelter, meals, water, and other services. If you need further help, the Red Cross may also connect you with a caseworker.
Federal Emergency Management Agency (FEMA)
FEMA sometimes offers assistance with long-term sheltering needs for survivors of tornados and other natural disasters. This might include:
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Financial help if your insurance provider does not fully cover rebuilding or repairs
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Reimbursement for hotel stays
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Rental assistance if you must rent a home while yours is being repaired or rebuilt
These types of assistance may not be available in every case, and FEMA may also offer other types of aid.
Does Homeowner’s Insurance Cover Tornado Damage?
Most homeowner’s insurance policies cover tornado damage. However, you should not assume that your policy will cover every type of loss. For example, some policies do not cover windstorm damage (including tornado damage).
Additionally, “covers” does not always mean “pays to replace.” When you purchase a policy, you might choose between two main coverage types:
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Actual Cash Value (ACV): Pays the value of property in its current state
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Replacement Cost Value (RCV): Pays to replace the property
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
The difference between ACV and RCV can be substantial. For example, suppose that your roof is destroyed in a tornado. If you have an ACV policy, your insurer will take depreciation into account when paying the claim, and you may still have to pay tens of thousands of dollars for your new roof.
If you have an RCV policy and your insurer approves your claim, the company should cover all of the costs of a new roof (after your deductible). To better understand what your homeowner’s insurance does and does not cover, read your policy closely. If you still have questions, an attorney with insurance experience may be able to help.
Also Read: How Long Does Neck Pain Last After a Car Accident?
How Do I File a Claim for Property Damage After a Tornado?
When filing an insurance claim, you must act promptly — but make sure to collect ample evidence first. Document all interior and exterior damage, and keep all receipts for expenses related to the damage. Here are the steps you can take to file a claim for property damage:
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Take pictures or videos of all damaged areas and items
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Do not make any permanent repairs until an adjuster assesses the damage
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Contact your insurer to submit your claim
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Include all evidence with your claim
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Cooperate with the insurance adjuster as they investigate
The 80% rule also plays an important role here. This rule states that if your home insurance coverage is greater than or equal to 80% of your home’s replacement value, the insurer will pay the total replacement cost.
If your coverage does not meet this 80% benchmark, the insurer should pay a certain percentage determined by the amount of the deficit. This percentage is determined by dividing the coverage you have by 80% of your home’s value. For example, if you have $250,000 of coverage, and 80% of your home’s value is $500,000, then your insurer would pay just 50% of your claim.
How Deductibles Work for Tornado Damage Coverage
Your deductible is the amount you have to pay before your insurance kicks in. For example, if your home has $10,000 of damage and your deductible is $1,000, you would pay $1,000, and the insurer would pay the remaining $9,000.
However, many policies have a separate deductible for windstorms. It is usually higher than a standard deductible — often about 1% to 5% of the home’s insured value. For example, if your home is insured for $400,000 and your windstorm deductible is 2%, you would pay the first $8,000 of the costs of a repair.
What Happens if My Property Insurance Claim Is Denied?
If your claim is denied, you can file an appeal with the insurer. However, it is almost always best to enlist the help of a property insurance dispute lawyer to do so. A lawyer can help you gather additional evidence and consult experts who can substantiate your claim and increase your chances of approval.
What Do I Do if My Property Claim Appeal Is Also Denied?
Some insurers deny appeals even for legitimate claims. If this happens to you, you can file a complaint with the state’s insurance commissioner.
An insurance dispute lawyer can also be helpful here: If all other avenues fail, a lawyer may file a bad-faith insurance lawsuit on your behalf.
Talk to an Insurance Dispute Lawyer if You Are Having Difficulty Getting Your Benefits
In an ideal world, insurance companies would promptly pay any legitimate claims without hesitating or delaying. Unfortunately, it does not always work that way.
Insurance disputes can be unfamiliar and stressful for policyholders, but insurance attorneys handle these situations daily. You can improve your chances of a positive outcome by consulting a residential or commercial property insurance dispute attorney.
