FOR IMMEDIATE RELEASE
NEW YORK, November 19, 2013 — Reporters covering the Midwest tornadoes can call the
Insurance Information Institute (I.I.I.) for access to experts who can discuss insurance coverage issues, offer claims-filing tips, and put Sunday’s tornadoes in historical perspective..
November is usually one of the least active months for tornadoes, while May is the most active month. The E-5 tornado that hit Moore, Oklahoma, on May 20 of this year cost $1.6 billion in insured damages. Severe U.S. thunderstorms, including tornado events, cost $14.9 billion in insured losses in 2012, according to Munich Re.
The United States experiences more tornadoes than any other country in the world, according to a 2013 report by Lloyd’s of London. The costliest U.S. catastrophe involving tornadoes occurred in April 2011 when twisters hit Tuscaloosa, Alabama, and other areas causing $7.4 billion in insured damages in 2012 dollars. The second costliest U.S. catastrophe involving tornadoes struck Joplin, Missouri, and other locations in May 2011. These storms struck multiple states causing $7 billion in insured losses in 2012 dollars.
“Insurers have the financial and human resources to respond effectively to these tragic natural disasters,” said Dr. Robert Hartwig, CPCU, an economist and president of the I.I.I.
Insurance Coverage for Tornadoes
Standard homeowners and business insurance policies cover wind damage, including those caused by tornadoes, to the structure of the building and its contents. Homeowners policies also provide for additional living expenses (ALE). ALE coverage pays the costs of living away from home if you cannot inhabit your house due to damage from an insured disaster. The ALE provision covers hotel bills, restaurant meals and other living expenses incurred while your home is being repaired or rebuilt.
If you own a business that has been damaged, business income (also known as business interruption) insurance, covers the profits your business would have earned, based on your own financial records, had the disaster not occurred. This includes additional operating expenses incurred as a result of the disaster, such as the extra expenses involved in operating out of a temporary location.
Damage to cars from a tornado is covered under the optional comprehensive portion of a standard auto insurance policy. Covered losses under comprehensivecoverage include theft, fire, vandalism, weather related losses such as hail, water (flood), falling objects, damage caused by a bird or animal, and glass breakage.
RELATED LINKS
The I.I.I.’s free mobile apps can help you create a disaster plan, learn about selecting the right insurance for your needs and budget, and create and maintain a home inventory. Learn more about our suite of apps here.
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