Recent outbreaks of deadly, destructive tornadoes raise questions about insurance coverage: How does tornado insurance work, and why do homeowners often get stuck paying most of their tornado repair bills?
Most homeowner, business, and auto insurance policies include tornadoes as part of standard coverage for wind damage and severe weather, according to the Insurance Information Institute. In general, homeowner's and renter's insurance covers property damage from tornadoes.
The type of insurance policy, and the amount of insurance purchased, affect how much an insurance company will pay for tornado damage. But even with tornado insurance, tornado victims will likely have to dig deep into their own pockets to rebuild.