When a tornado strikes, it can be devastating. This is the time when people tend to ask the question of what is Home Insurance going to cover? When your home is destroyed or significantly damaged, you want to know that your home is going to be repaired with a minimum amount of hassle or payment out of your pocket.
Dwelling Coverage
The cornerstone of any home insurance policy is dwelling coverage, also referred to as Coverage “A” or Building Coverage. This is the amount that is determined to completely replace your home should it be a total, devastating loss. This part of your policy covers the structure of your home, including the walls, roof, and foundation. It’s important to ensure that your coverage amount accurately reflects the cost to rebuild your home at current construction prices, not just its market value.
Other Structures Protection
This aspect of your home insurance extends to structures on your property that are not attached to your home, such as garages, sheds, and fences. Like dwelling coverage, it’s very important to assess the value of these structures and ensure they are adequately covered in the event of a tornado.
Personal Property Coverage
Personal property coverage helps replace your belongings, such as furniture, electronics, and clothing. There are two ways to cover your personal property; Replacement Cost and Actual Cash Value. Replacement Cost will pay to replace your damaged property with brand new property. Actual Cash Value will depreciate the property that you had. This means that if you make a list of damaged property. If your television is 5 years old, the insurance company will determine the depreciated value of that 5 year old television.
Loss of Use Coverage
If a tornado makes your home uninhabitable, loss of use coverage, also known as additional living expenses (ALE) coverage will be necessary. This unknown coverage to most people will be very important when you don’t have a place to live. It covers the costs of living away from home if you cannot stay in your house during repairs. This includes expenses like hotel bills, restaurant meals, and other necessities.