While tornado damage is rare in Canada, homeowners may still have some questions regarding whether or not a standard homeowners insurance policy will cover tornado damage or not. To learn more about what is and isn't considered a covered peril by insurance companies in Canada, stick around and read through our easy-to-follow guide below.
Will my insurance company cover tornado damage in Canada?
Yes, most of the time, tornado damage will be covered by your insurance policies. Typically, tornado damage is listed as damage that results from high winds or windstorm damage. As such, if you have that listed in your coverage, you will likely have tornado damage coverage.
Common tornado damage you can claim under your dwelling insurance includes roof damage, structural damage to your home (including other structures on your property unless specifically excluded), any damage caused to your home inventory, downed power lines, and debris removal during the aftermath. It's important to note that what your home insurance policy covers and what it doesn't cover will vary between providers.
When it comes time to file an insurance claim with your insurance company following a tornado, an insurance adjuster will undergo the process of calculating how much your claim is worth, aka how much money you'll receive from your homeowners insurance payout. To do so, they'll take a look at the evidence you've provided before looking at the value of your home inventory. The next portion of the claims process involves conducting estimates of your property. Typically, an insurance provider will partner with contractors they've worked with previously. But you may also have the option of choosing your own.
Once estimates are made, your home insurance company will offer you an amount to settle your claim. Remember that the settlement can only total up to your coverage limits listed in your homeowners insurance plan. After you accept, you can go ahead and have your home repaired and your items replaced.
What tornado-related damage might not be covered
So, what exactly is not covered by your home insurance policy? Take note of the following:
Pest infestations
Most insurers believe that pest infestations are preventable and require periodic maintenance to prevent them. As a result, the homeowner is responsible for all costs associated with pest control, even following a tornado.
Mould
Mould and mildew growth occur in places with high humidity levels. Unless the mould was caused by a covered risk stated in your policy, your insurer will not reimburse the costs of restoring your house or personal property.
Kitchen appliances
Your home insurance will not cover appliances if damaged by wear and tear, maintenance, or neglect. They may be covered if they are damaged by a peril listed in your homeowners insurance policy. So, what happens if your appliances suffer high-wind damage during a tornado? In this case, it's likely that your homeowners insurance will cover the damage. However, some may not.
Roof damage
Roof damage that results from old age, lack of maintenance, or homeowner neglect is also not valid for an insurance claim. Ask yourself, is my roof winter-proof? Ensure that you conduct ongoing maintenance on your home. Failing to maintain your roof in the time leading up to a tornado can actually lead to your home insurance policies being denied by your provider.
Water damage
Following a tornado, the risk of flooding in your area by nearby lakes or rivers can increase, given the amount of debris that has been distributed in the area. The signs of water damage in your home following a tornado are easy to spot, from stains to mould and mildew growth. However, whether or not water damage is covered depends on whether your home is insured by overland flooding insurance.
If you live in a high-risk area, you'll want to ensure your policies and limits reflect the risks you face, including flooding. By determining these risks when you purchase your coverage, you'll have more protection in the aftermath. Additionally, t o get a better idea about what is and isn't covered, make sure to read your policy and speak with your insurance company if you have any questions regarding your coverage.
Further, beware of insurance gaps. For example, while you may have personal property coverage for your items, your coverage limit may not reflect the actual value of replacing your items should damage or losses occur. The same can be said about damage to your landscaping. Check with your company to determine whether you can add an endorsement to your coverage.
In the meantime, check out our guide for preventative home maintenance tips to prevent home insurance winter claims and other damages throughout the year!
How to prepare for a tornado
If a tornado hits your area, it's essential that you prepare and ensure that your home is insured. Here are some items to keep on hand:
- First aid supplies, including a pet first aid kit.
- Pet food, pet waste bags, veterinary records.
- Prescription medications.
- Non-perishable foods and bottled water.
- Legal documents like birth certificates, passports, and other forms of identification.
- Financial documents.
- Clean clothing and toiletries.
- Photos of your home/belongings that can be used in the event of a claim.
- Consider installing shutters on all doors and windows. This will help prevent shattered glass during high winds.
- Before a storm, move outdoor furniture inside to prevent injuries and exterior damage.
- If you have the means to do so, installing a safe room large enough for you and your family can help keep you safe during tornado season.
- Maintain a home inventory of all your belongings. It will help ensure you're reimbursed by your provider following extensive tornado damage to your home and items.
- Speak with local authorities about developing a plan for you and your neighbours following a tornado. It can help streamline disaster relief efforts in your area.
What is homeowners insurance?
First things first, what exactly is homeowners insurance, and what does it cover? In a basic homeowners policy, you will find the following:
Liability insurance
Liability insurance protects homeowners in the event someone is injured on their property or property damage to a third party occurs. For example, if a tree from your property falls into your neighbour's yard, causing damage. In the event that a lawsuit is filed against you, your home insurance policy will cover the cost of medical bills, repairs, replacement costs, legal fees, and other expenses that may arise from your legal proceedings up to your coverage limits.
Ultimately, liability coverage offers financial protection and peace of mind against the unexpected, similar to how your car insurance policy works!
Personal property coverage
The next portion of your home insurance policy is personal property coverage. With personal property coverage, you will receive compensation if your personal belongings are damaged or stolen from your property as a result of a fire, theft, vandalism, severe wind damage, explosions, and other covered perils up to your coverage limits.
Additional living expenses coverage
If your home is damaged as the result of a covered peril and you are unable to live at your home while repairs are underway, additional living expenses coverage pays for accommodations, meals, travel, and other associated costs while you are unable to live at home.
Dwelling coverage
Lastly, dwelling coverage protects the physical structure of your home from certain damages. Again, common perils listed in dwelling coverage include fires, explosions from natural gas, windstorm damage, theft, and vandalism.
Optional home insurance
Beyond standard home insurance, there are additional coverage options you may want to think about for added peace of mind and protection. Here are some common add-on home insurance policies:
Overland flood insurance
Overland flood coverage pays for the cost of repairs and replacements of your personal property and home if they are damaged by overland flooding. Typically, water damage is not included in standard insurance coverage. Therefore, if you live near the ocean, a freshwater lake, or a river, adding flood coverage to your homeowner's insurance is highly recommended to protect your home against spring flooding.
Sewer backup coverage
Another home insurance plan you may want to think about is sewer backup coverage. Sewage backup in your home can cause significant damage and health risks. Typically, plumbing issues like backup are not protected under basic home insurance. If you do not have a sump pump or backwater valve in your home, this additional policy is something to think about.
Comprehensive vs broad home insurance
When buying home insurance, you may come across the terms comprehensive vs broad home insurance. But what exactly does that mean?
Broad house insurance protects your property in case it gets destroyed or damaged. That said, the coverage only covers what's inside of your home (your personal property) in the event it is damaged or destroyed by a risk specified in your policy. For example, if your home and personal property are damaged in a fire, but it is only listed as a covered peril in your dwelling insurance policy, your insurance company would only cover the cost of repairs or replacements to your actual home, not your belongings.
In contrast, comprehensive home insurance is also known as all-risks coverage. If we're using the same scenario as above, your comprehensive insurance will pay to replace your home and your personal belongings, ensuring all aspects of your personal property and home are compensated.
Get affordable homeowners insurance with BrokerLink
At BrokerLink, we help homeowners find affordable insurance policies and navigate their claim process. With access to some of the top home insurance companies in Canada, our experienced brokers can help customize an insurance plan that fits your needs and budget. Beyond standard insurance policies, here are some other home insurance coverages we can help you acquire:
Are you ready to work with BrokerLink? If we're in your neighbourhood, don't hesitate to come into one of our offices to speak with a broker in person. If you aren't close by, you can always reach us over the phone at any time!
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