The risk of tornado activity in the Auburn area is 42% greater than the national average. To date, 54 tornadoes of a magnitude of F2 or greater have occurred in or near this city. Among the worst was an F3 twister that touched down about five miles from the Auburn city center in 1953. This tornado caused approximately $2.5 million dollars’ worth of damage.
Tornadoes can be quite destructive. As a resident of Auburn, it is therefore important that you ensure that your valuable property is appropriately insured against this risk. A local independent insurance agent can help you be certain that you have sufficient tornado insurance.
What Is Tornado Insurance and How Much Does It Cost in Auburn, AL?
Unlike earthquake insurance and flood insurance, there is no such thing as a stand-alone tornado insurance policy. Rather, this coverage is acquired through the policies you already have. A high risk of tornado activity in your area can cause the cost of these various policies to increase a bit.
Whether you carry homeowners insurance, renters insurance, car insurance or business insurance, a local independent insurance agent can help you be sure that your policy includes coverage against tornado damage.
How Does Homeowners Insurance Cover Tornado Damage in Auburn?
Most homeowners insurance policies cover against tornado damage as a standard part of their coverage.
However, some people opt to save money by purchasing named peril home insurance coverage. If you have this type of policy, you will not be covered against tornadoes unless you have specifically named them among the hazards that you are buying coverage against.
Assuming your homeowners insurance policy does include coverage against tornadoes, it can help you out in three ways.
Dwelling coverage: This covers damage to the structure of your home. If a tornado damages your roof, breaks your windows, or in the worst case, flattens your home, your dwelling coverage will pay for the cost to repair the damage or rebuild a home of comparable size.
Contents coverage: This covers damage to your personal property. If a window gets blown in and your expensive electronics and furniture are damaged by wind and rain, this will cover the cost to replace it.
You can either purchase actual cash value (ACV) or replacement cost value (RCV) coverage. The former will reimburse you for the actual, depreciated value of your property, whereas the latter, which costs more, will cover the cost to buy brand-new replacement items.
Loss of use coverage: If a tornado causes significant damage to your home and leaves it uninhabitable, loss of use insurance can cover your temporary alternative living expenses while repairs are made or your house is rebuilt.
This insurance can pay for a hotel or other housing costs and provide you with a meal allowance if your housing does not include a kitchen. It can also pay for additional miles you put on your car if you must drive further to get to work.
Talk to a local independent insurance agent to find out what your homeowners insurance does and does not cover and for help making sure that your dwelling and contents insurance coverage limits are high enough to fully cover your property.
How Does Renters Insurance Cover Tornado Damage in Auburn?
Even though the average cost of renters insurance in Auburn is only about $25 a month, many renters opt to forego purchasing this coverage. This is a shame because renters insurance provides a lot of coverage for an affordable price.
You can expect your renters insurance policy to include coverage against tornadoes, it can help you out in two ways.
Contents coverage: This covers damage to your personal property. If a window in your apartment gets blown in and your belongings are damaged by wind and rain, this will cover the cost to replace it. In the worst-case scenario, if the home you are renting is in the tornado’s direct path and you lose everything, you will have the funds needed to replace it all and start over.
You can either purchase actual cash value (ACV) or replacement cost value (RCV) coverage. ACV will reimburse you for the actual, depreciated value of your property whereas RCV, which costs more, will cover the cost to buy brand-new replacement items.
Loss of use coverage: If tornado damage renders your home uninhabitable, the loss of use insurance in your renters insurance policy can cover your temporary alternative living expenses while repairs are made. If returning is not possible, it can cover your housing while you look for a new place to rent.
This insurance can pay for a hotel or other housing costs and can provide you with a meal allowance if your housing does not include a kitchen. It can also pay for additional miles you put on your car if you must drive further to get to work.
Talk to a local independent insurance agent to find out what your renters insurance does and does not cover and for help making sure that your coverage limits are high enough to fully cover your personal property.
How Does Car Insurance Cover Tornado Damage in Auburn?
If your vehicle is in the vicinity of a tornado’s path, it can be damaged to destroyed by high winds, flying debris, falling trees, and other hazards. You may therefore want to include two types of optional coverage in your car insurance policy.
Comprehensive insurance: Your car insurance policy will provide coverage for tornado damage only if your policy includes comprehensive coverage. This insurance can cover the cost of repairing your vehicle, or, if it is totaled, can reimburse you for its current blue-book value.
Comprehensive coverage is required by lenders if you are still paying for your vehicle and by dealerships if you are leasing it. Otherwise, this insurance is optional. This means that if you have paid off your car and carry a minimum coverage policy, will not have coverage if your vehicle is swept up in a tornado
If you do not currently have comprehensive coverage but are interested in learning more, a local independent insurance agent can help you find out how much it will cost to add it to your car insurance policy.
Gap insurance: Owners of newer vehicles may also want to consider purchasing gap insurance. That way, if your car is totaled by a twister and you owe more for it than it is currently worth, you will not be left making car payments on a vehicle you no longer own. Talk to a local insurance agent to learn more.
How Does Business Insurance Cover Tornado Damage in Auburn?
If a tornado rips through the neighborhood where your business is located, the financial impacts of the property damage, power outages, and other destruction left in its wake can lead to large financial losses for your business. Fortunately, a solid business insurance plan can provide coverage.
Business insurance covers your business against tornadoes in five ways.
Commercial property coverage: This can cover damages to the building in which your business is housed if your company owns it. It can also cover damage to your business property including outdoor signs.
Commercial vehicle insurance: Like with car insurance, your company-owned vehicles will only be covered against tornado damage if your policy includes comprehensive coverage.
Inland marine insurance: This can cover your business-owned property if it is damaged by a tornado while it is in transit or while it is being stored away from your place of business, such as at a job site.
Business interruption insurance: If a tornado causes significant damage to your Auburn business and you are forced to close down for several weeks while repairs are made, business interruption insurance can provide you with a continuation of income so your business can continue paying regular expenses such as bills, rent, and employee salaries.
Spoilage insurance: If you own business property that must be kept at certain temperatures, a prolonged power outage could lead to spoilage. Spoilage insurance can cover the associated costs. Examples of businesses that can benefit from the added coverage include restaurants and pharmacies, which rely on refrigerators and freezers for the storage of certain foods and medications.
How Can You Get Tornado Insurance in Auburn, AL?
If you have insurance, chances are good that you are already covered against tornado damage in Auburn AL. It never hurts to make sure though. That’s why talking to a local independent insurance agent can help.
These agents can help you review your currently owned policies to ensure that they provide coverage against tornadoes and the various other risks you are likely to face in Auburn. They can also shop around to see if they can find you comparable or better coverage at a lower price.
Contact an independent insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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