Homeowners: Here's how to protect your investment from a tornado

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Homeowners may rightfully be nervous about whether they are financially protected against potentially devastating tornadoes. Here's how to protect your investment.

that ripped across parts of the Midwest and South this week, homeowners may rightfully be nervous about whether they are financially protected against potentially devastating storms.

Before a storm strikes, there are steps homeowners or renters might take to make sure they're financially protected tornadoes.Wind damage, including that from tornadoes, thunderstorms and straight-line winds known as"derechos," is covered as part of a standard homeowner's policy. "In a lot of areas, insurers have put wind deductibles in place," said Amy Bach, executive director of United Policyholders, an advocacy group for insurance consumers."Some of them will have wind velocity clauses, where if the wind gets to a certain speed the deductible applies."

Think of it this way: Your 12-year-old sofa may only be worth $500 on the market, but if your belongings are destroyed and you need to replace it, you could shell out $2,000 or more for a new couch. "Flooding is considered a rising body of water, so if it's coming from the ground up, you would not have coverage," she said. However, if a tornado tears off part of your roof and your house is damaged by rain, that should be"a covered peril," she said.

If you rent, it may be wise to purchase a separate renters insurance policy, which should cover your belongings in a range of scenarios — storms, break-ins or other unexpected events.

 

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