Tornado Season Usually Peaks as Spring Approaches

Understanding your insurance coverage, and what to do before, during, and after a tornado hits, should be top of mind at this time of year for those residing in tornado-prone states and elsewhere, according to the Insurance Information Institute (I.I.I.).

The eight so-called ‘tornado alley’ states—Arkansas, Kansas, Iowa, Louisiana, Missouri, Nebraska, Oklahoma and Texas—are where twisters are most prevalent, according to the National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service, Storm Prediction Center. A tornado is a violently rotating column of air extending from a thunderstorm to the ground, and they can occur in almost every U.S. state

“March, April and May are traditionally when most tornadoes sweep through the U.S., threatening both lives and property,” said Michael Barry, vice president of Media Relations for the I.I.I. The first day of spring this year is Saturday, March 20.

Reports published by NOAA’s Storm Prediction Center counted 1,156 tornadoes in 2009, which killed 21 people last year. The annual number of U.S. tornadoes over the past decade has averaged around 1,270.

Moreover, the findings of a new Georgia Tech study suggest that the size of a land-falling hurricane is correlated to an increase in the potential for tornadoes as the hurricane moves inland. Hurricane Ike in 2008, for instance, caused significant damage in Texas and multiple other states as far north as Ohio; the same year 1,691 tornadoes were reported in the U.S.
Having Sufficient Coverage
Standard homeowners and business insurance policies cover wind damage caused by tornadoes to the structure of the building and its contents but you should make sure your coverage limits reflect the cost of rebuilding the structure, or replacing your personal belongings.

Homeowners insurance policies also traditionally provide for additional living expenses (ALE). ALE coverage pays the costs of living away from home if you cannot inhabit your house due to damage from an insured disaster. The policy’s ALE provision covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt

Damage to cars from a tornado is covered under the optional comprehensive portion of a standard auto insurance policy.

If your business has been damaged, and you have business income (also known as business interruption) insurance, it covers the profits your business would have earned, based on your own financial records, had the disaster not occurred. The policy covers additional operating expenses incurred as a result of the disaster, such as the extra expenses involved in operating out of a temporary location.

The I.I.I. offers the following tips for preparing for and dealing with a tornado.


1. Before a Tornado
If a tornado watch has been issued, move cars inside a garage or carport to avoid damage from hail, which often accompanies tornadoes. Keep your car keys and house keys with you at all times. Move lawn furniture and yard equipment, such as lawnmowers, inside. Otherwise they could be damaged or act as dangerous projectiles causing serious injury or damage.

A tornado watch means that weather conditions are favorable for tornadoes and a tornado warning means one has been spotted in your area.

Be sure to always have an up-to-date inventory of your possessions and store it in a safe place, with at least one copy off the premises—in a safe deposit box, or with an online storage service. To help with this task, the I.I.I.’s free online home inventory software, Know Your Stuff, is available at KnowYourStuff.org.

The Institute for Business & Home Safety (IBHS) recommends that, as a tornado approaches, you go to the closest identified shelter immediately. If you do not have a storm cellar or in-residence “safe” room and do not have time to get to a community shelter, head to the centermost part of your basement or home, away from windows and preferably under something sturdy like a workbench or staircase.
2. During a Tornado
Do not open windows because you will put yourself at risk of injury from breaking glass. You also may make the damage to your home worse by giving wind and rain a greater chance of getting inside.

If you are in your car, abandon your vehicle and seek shelter in the nearest ditch if no other facility is available. Do not get under a bridge or overpass. You are safer in a low, flat location. If you live in a mobile home, you should vacate the premises and seek shelter elsewhere.
3. After a Tornado
The I.I.I. offers the following advice to speed the insurance claims settlement process following a tornado:

* Be prepared to give your agent or insurance company representative a description of the damage to your property. Your agent will report the loss to your insurance company or to a qualified adjuster who will contact you as soon as possible in order to arrange an inspection of the damage.
* If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims process and can assist the adjuster in the investigation.
* Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
* Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.
* Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses in making temporary repairs.
* Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
* If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts.

For more historical information about insurance and tornadoes, go to the I.I.I.’s Facts and Statistics and tornado-related Consumer Basics sections.