Know the Biggest Risk in Your Home Insurance's Tornado Coverage

5/7/2020 (Permalink)

Know the Biggest Risk in Your Home Insurance's Tornado Coverage

The biggest risk you may face if your home suffers major damage during a severe storm or tornado is being underinsured. With changing costs of construction materials and labor, home insurance reconstruction costs have increased over the years.

Although some policies do include the option for inflation adjustment, this is not sufficient to cover varying reconstruction costs. Take some time to verify the value your home is insured for. Then, be sure to inquire about what happens in a claim if your home is underinsured.

Some policies include guaranteed replacement cost or actual cash value. However, the limit may be capped. Other policies may limit you to the insured value. With so many homeowners underinsured, this is a major problem that may leave you in a situation where even with insurance, you won't have enough to rebuild.

This is one aspect of your insurance you don't want to leave unchecked. Contact your agent or broker to discuss your policy and if necessary have them verify that the current insured value is up to par. Ensure you have all the best insurance endorsements available to guarantee you are fully covered in a major loss.

https://www.thebalance.com/home-and-car-insurance-for-tornado-damage-4026154

 SERVPRO of South Arlington is here for all of your restoration needs.