If you have a homeowners insurance policy, yes, you have "tornado insurance."
Homeowners insurance policies cover your home and its contents for wind damage, including damage caused by tornadoes, according to the Insurance Information Institute (III).
You've just got to be sure your coverage limits are enough to fully cover the cost of rebuilding and replacing your stuff. Keep in mind that it costs more and more each year to rebuild a home, so watch out as you could be UNDER INSURED.
April 27, 2011 was the deadliest day for tornadoes since a 1925 tornado outbreak killed more than 700 people in seven states.
Recent tornadoes killed more than 300 people, largely in Alabama but also in five other southern states, leaving thousands homeless and without power.
III says homeowners policies also cover the cost of additional living expenses (ALE), the cost of living elsewhere when you can't inhabit your home due to damage from an insured disaster. ALE covers hotel bills, restaurant meals and other living expenses incurred while your home is being repaired or rebuilt.
To get your home fully rebuilt after total destruction you need "guaranteed replacement cost coverage."
Avoid home value-based coverage (the value of your home on the open market), unless you can afford to pay the difference after a disaster. Replacement cost coverage will fully rebuild your home and replace its contents at current market costs. The coverage can be tough to get in some high hazard risk areas, but if you live in areas with a high risk for tornadoes, hurricanes and other natural disasters, you need all the protection you can get.
Home-based business equipment and supplies, home improvements and upgrades adding extra square footage, antiques, collections, hobby materials and other valuables should be adequately insured and may require special coverage.
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