We had a tornado in Maryland a couple of weeks ago, which is very unusual in our area. Are tornadoes typically covered under homeowners and auto insurance?
Mike McCartin, an independent insurance agent in College Park, Md., works very near that tornado's path. Many of his clients ended up with roof damage, missing shingles and blown away gutters -- which their homeowners insurance will pay to replace. Most policies will automatically cover damage to your home or car caused by tornadoes.
Fallen trees, another common result of tornados, are a bit more complicated. Your insurance likely would cover any damage caused by a tree falling on your home -- whether it's from your neighbor's yard or your own. The policy also probably pays for the tree's removal. But if a tree falls on your property without damaging a building, you'll probably have to foot the bill to have it hauled away. And if a tree hits your car, call your auto insurer. Your car's physical damage coverage will pay for repairs.
Fortunately most homeowners insurance policies don't charge extra for tornado coverage. But not all disasters are treated equally.
Homeowners in a hurricane-prone areas may be charged an extra 5% to 10% deductible specifically for wind damage regardless of a storm's classification.
Earthquakes and floods typically aren't covered by most insurance policies. You can usually add earthquake coverage to your homeowners policy for about $100, or less if you're in a low-risk area, says McCartin. Flood insurance is only provided by the National Flood Insurance Program, but you can buy it through most insurance agents. It can cost from about $230 for $100,000 of coverage in a low-risk area, up to $800 or more if you live in a flood plain. For more information about damages that typically aren't covered under auto and homeowners insurance policies -- and what you can do about it.
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