Colorado Tornado Insurance

Your Complete Guide to Tornado Insurance in Colorado

Find the right tornado insurance policy for you.

An average of 49.5 tornadoes touch down in the state of Colorado every year. The eastern side of this state carries the highest risk, since it is located on the edge of the part of the country that is infamously known as Tornado Alley. When twisters strike, violent winds and flying debris frequently lead to widespread damage.  This is why tornado insurance is so important.

Many property owners in Colorado aren't sure whether their belongings are covered in the event of a tornado. While most insurance policies will cover this damage, some may specifically exclude it unless you purchase an additional rider. A local independent insurance agent can help you review the policies you currently have to ensure that you have sufficient tornado insurance coverage. 

Colorado’s Most Expensive Tornadoes

  • The Windsor Tornado was the worst to ever hit this state. This F3 twister caused more than $147 million in damage.
  • An F3 twister in Denver injured 7 and caused approximately $3 million in damage.
  • An F3 tornado near Sedgwick killed 2, injured 3, and resulted in about $750,000 in property damage.

What Is Colorado Tornado Insurance?

Tornado insurance is not a stand-alone policy, rather it is something that you can expect to find in your home insurance, car insurance, business insurance, and other insurance policies.  In some cases, tornado coverage is included as a standard part of the policy, while in other cases it must be specifically requested or purchased as part of a policy option or endorsement. Independent insurance agents can help you review the coverage you already have to ensure that you are properly covered. In some cases, they may be able to find you better and more comprehensive coverage at a lower price. Talk to an agent near you to learn more.

Tornado Coverage for Your Colorado Home

When it comes to tornadoes, your home is one of your biggest concerns. It is where the majority of your property can be found, and if you own your home, it is among your most valuable assets. This is why homeowners insurance, renters insurance, mobile home insurance, or condo insurance is so important.

Regardless of what type of policy you have covering your home, it will most likely include coverage against heavy winds and tornadoes. However, some policies offer lower rates for purchasing as-named coverage, where you are only covered for the specific risks you choose. If you do not elect to include tornadoes among those risks, you will not be covered if a tornado levels your home. There are three ways that your home policy can protect you against losses related to tornado damage.

  • Structural coverage: This is part of homeowners insurance and it covers damage to the structure of your home, including the roof, siding, foundation, plumbing, and electrical system, as well as outlying structures such as carports, fences, and sheds. If you are renting or own a condo, you will not need structural coverage.
  • Contents coverage: This is designed to cover the personal belongings that are kept in your home, including clothes, electronics, appliances, fixtures, flooring, and jewelry. If a tornado causes windows to break and your property is damaged or destroyed, tornado insurance can pay to replace it.
  • Temporary housing coverage: If a tornado renders your home uninhabitable, your home policy can cover the cost for you to live in temporary housing until your home can be rebuilt or brought back up to code.

It's essential that the coverage limits on your structural and contents coverage be high enough to cover you in the face of a total loss. If you have recently completed upgrades to your home, bought new furniture or appliances, or your home's value has increased, it may be time to raise your policy limits.

Tornado Insurance for Your Colorado Business

If a tornado touches down near your Colorado business, the financial impact can be devastating if you are not properly insured. Most business policies can provide you with tornado insurance coverage in three ways:

  • Structural coverage: This is necessary if your business owns the structure in which it is housed. This can cover damage to the roof, siding, foundation, and other structural components.
  • Property coverage: This can cover your various business assets such as inventory, merchandise, tools and machinery, signs, furniture, computers, and more if they are damaged by a covered hazard, including tornadoes.
  • Business interruption coverage: Tornadoes can be particularly destructive and can force businesses to remain closed for an extended period while repairs are made. Fortunately, this coverage provides a continuation of income while you are closed so that your business does not suffer financially.

Every business has unique coverage needs. Let an independent insurance agent help you review your current commercial insurance policy to ensure that you are adequately covered against tornado damage as well as the other hazards you may face as a business owner in Colorado.

Tornado Insurance for Cars, Boats, and ATVs

If you own a car in Colorado, you need car insurance. But does your policy provide you with coverage if your car is destroyed by a tornado? The answer is, it depends. Only car insurance policies that include comprehensive coverage can compensate you for tornado damage. Comprehensive insurance is an optional component of car insurance, but if you are leasing your car, the dealership will likely require you to include it. Likewise, if you financed your vehicle and are still paying for it, your lender will require it.

Other policies such as boat insurance and ATV insurance are not required. If your boat or ATV is damaged by a tornado while on your property, your home insurance may offer some coverage, but it is typically rather limited. By supplementing your coverage with boat or ATV insurance that includes comprehensive coverage, you can have full coverage against tornadoes.

Let an Independent Insurance Agent in Colorado Help

Finding your property destroyed by a tornado can be devastating enough. Don’t let large financial losses add to your misery. There are more than 250 independent insurance agents located throughout Colorado. These agents are ready to help. Find an insurance agent near you for assistance with reviewing your current insurance policies to make sure that each provides you with good tornado insurance coverage.

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