Dothan Tornado Insurance

Your Complete Guide to Dothan, AL Tornado Insurance

A local independent agent can help you be sure you have the right insurance coverage in place.

Dothan Alabama Tornado Insurance

While the risk of tornado activity in Dothan is lower than the Alabama state average, it is still 53% greater than the national average. To date, 76 tornadoes of magnitude F2 or greater have occurred in or near this city.

While most of the tornadoes to strike have been outside of the city limits, Dothan endured a direct hit in 1971 when an F2 tornado touched down, causing tens of thousands of dollars in damage.

As a resident of Dothan, it is important to be certain that all of your valuable property is properly insured against this natural disaster. A local independent insurance agent can help you make sure you have appropriate tornado insurance.

What Is Tornado Insurance and How Much Does It Cost in Dothan, AL?

Some hazards like earthquakes and floods must be covered by their own separate insurance policies because they are excluded from coverage by other policies. However, there is no such thing as a stand-alone tornado insurance policy. Instead, this coverage is included in the insurance you already have.

The risk of tornadoes where your home or business is located will be taken into consideration by insurance companies when they are calculating your cost for coverage. It is just one of many factors that are used when assessing risk and assigning rates.

Naturally, the higher the risk of tornadoes, the more coverage against them will be, so in Dothan, where tornado activity is relatively low by Alabama standards, it will have less of an impact on rates than in Tuscaloosa, where the risk is much higher.

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 sufficient coverage against tornado damage and that you are getting this coverage at a reasonable price.

How Does Homeowners Insurance Cover against Tornado Damage in Dothan?

Tornadoes can cause serious destruction. They can rip roofs from homes, topple trees onto property, and in worst-case scenarios, can completely flatten houses.

Unless you carry a named-peril homeowners insurance policy and have neglected to include tornadoes among the risks to be covered, you can expect that your home insurance policy will pay for damage caused by this hazard.

Your home insurance policy can provide you with three kinds of protection against tornado damage:

  • Homeowners dwelling coverage: This covers damage to the structure of your home. It can pay for the cost to repair the damage or, if necessary, to completely rebuild a house of comparable size. You will want to be sure that your dwelling coverage is high enough to keep up with your current home value, particularly if you have done a lot of renovation work.
  • Homeowners contents coverage: This covers damage to your personal property. You can choose to purchase actual cash value (ACV) or replacement cost value (RCV) coverage. ACV can reimburse you for the actual, depreciated value of your property, while RCV can cover the cost to buy brand-new replacement items.
  • Homeowners loss of use coverage: If a tornado causes significant damage to your house and it is unsafe to live in, loss of use insurance can pay for your temporary accommodations, provide you with a meal allowance, and cover other miscellaneous expenses, such as extra mileage if you must drive further to get to and from work.

Consult a local independent insurance agent to get more information. Your agent can help you make sure that your dwelling and contents insurance coverage limits are high enough to enable you to fully rebuild and replace property, if necessary.

How Does Renters Insurance Cover against Tornado Damage in Dothan?

On average, tenants in Dothan pay about $25 a month for their renters insurance coverage. That means that for less than $1 a day, you can get compensation if your personal property is lost or damaged due to a tornado or another hazard like a fire or theft.

If you have purchased renters insurance, you can expect your policy to cover you against tornadoes in two ways:

  • Renters contents coverage: This covers damage to your personal property. If a tornado rips the roof off your building or blows in a window, your belongings can be damaged by wind, rain, and debris. This insurance can cover the cost to replace them.
  • Renters loss of use coverage: This can cover your temporary living expenses, including accommodations and meals, if a tornado causes significant damage to your home and leaves it uninhabitable until your landlord is able to make repairs and get the place back up to code.

Talk to a local independent insurance agent for help making sure that you are getting your renters insurance at a good price and that your coverage limits are high enough to fully cover your personal property.

How Does Car Insurance Cover against Tornado Damage in Dothan?

If your vehicle is caught up in a tornado’s path, it can be damaged or destroyed by heavy winds, flying debris, uprooted trees, and other hazards.

Your car insurance can provide coverage for this damage, but only if your policy includes optional coverage. If you carry a basic, minimum-coverage policy, you will have no coverage against tornadoes at all.  

Car insurance can protect vehicle owners from financial losses related to tornadoes in two ways: 

  • Comprehensive insurance: This is required by lenders if you are still paying for your vehicle and by dealerships if you have it on a lease. Otherwise, comprehensive coverage is optional. This insurance is designed to cover loss or damage to your vehicle if it is caused by a non-collision event like a tornado, flood, or falling object.
  • Gap insurance: If a tornado totals your car and the amount you still owe for it is higher than what it is worth, you can be left paying on a car loan for a vehicle you no longer have. Gap insurance provides a solution to the problem by bridging the gap between what you still owe and your car’s depreciated value. Unless you have paid a hefty down payment, this coverage can prove invaluable during the first few years of new vehicle ownership.

Local independent agents can help you review what your current car insurance policy does and does not cover. If you feel that additional coverage is necessary, your agent can help you review associated costs and can find you a policy that provides all the coverage you want at the most affordable price.

How Does Business Insurance Cover against Tornado Damage in Dothan?

If a tornado tears through the neighborhood where your business is located, the financial losses caused by damaging winds, fallen trees, power outages, and other destruction can lead to large financial losses for your company if it is uninsured.

Fortunately, a solid business insurance policy package can provide coverage against this hazard in several ways:

  • Commercial property insurance: This can cover damage to the building in which your business is housed if it is owned by your company, as well as your valuable business property such as office furniture, inventory, computers, and outdoor signs.
  • Business interruption insurance: If you are forced to shut down your business for an extended period while tornado damage is being repaired, this insurance can help by providing a continuation of income in an amount sufficient to cover regular expenses like bills, rent, and employee salaries until you can safely resume normal operations.
  • Commercial vehicle insurance: This can cover tornado damage to your company-owned vehicles, as long as long as your commercial vehicle 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 kept at a location other than your place of business, such as at a job site.
  • Spoilage insurance: Some businesses, like restaurants and pharmacies, use and store things like food and medications that must be kept at certain temperatures in order to avoid spoilage. A prolonged power outage following a tornado could cause refrigeration and freezer units to warm to dangerous temperatures and damage these items. Spoilage insurance can cover the resultant losses.

Let a local independent insurance agent help you review your business insurance policy package to ensure that your company is sufficiently covered against tornadoes and the damage they can cause.

How Can You Get Tornado Insurance in Dothan, AL?

The easiest way to ensure that all of your valuable property is adequately covered against tornado damage is by consulting an independent insurance agent. These agents can help you review the policies you already have to ensure that they are sufficient, and they may also be able you find you policies that provide comparable or better coverage at a lower price.

Discover the many benefits of working with a local independent insurance professional. Set up an obligation-free consultation with an insurance agent near you to get started.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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