Tornado Insurance: Is It Really Worth It?
You never know what Mother Nature is going to throw your way, especially if you’re a homeowner living in Canada. The Great White North is known for its unpredictable, drastic weather changes. One day can be calm and clear; the next can be blustery and frigid.
This is one of the primary reasons why home insurance is so important; home insurance financially protects us from unexpected events that can damage our homes or their contents.
One of the overlooked risks of living in Canada is tornadoes. Although tornadoes are less common in Canada than in other countries, they still pose a legitimate risk, particularly to homeowners in large towns or cities. This leads to the question, “does insurance cover tornado damage in Canada?”.
That’s where we step in — our team of insurance advisors answer this question, and several more, in the following paragraphs.
How common are tornadoes in Canada?
Before we answer the primary question, we want to give you some background information about tornadoes in Canada.
Most Canadian weather experts estimate that there are 60 to upwards of 200 tornadoes in Canada every year. These tornadoes range in size and severity.
What parts of Canada are most prone to tornadoes?
A tornado can occur at any place or time in Canada. That being said, it should be noted that the following areas are at a higher risk of experiencing a tornado:
- Southern Ontario
- Southern Quebec
- Southern Prairies
How much property damage can a tornado cause in Canada?
This is a difficult question to answer due to the fact that the amount of damage depends on the size and general location of the tornado.
For instance, if the tornado takes place in a small, rural area, then it may only cause a small amount of property damage.
On the other hand, if the tornado takes place in a large town or city, it can cause countless dollars worth of property damage in a relatively short period of time. A tornado that took place in Ontario in July, 2021 caused approximately $75 million in insured damages. This tornado damaged 110 properties, 71 of which were deemed unsafe.
As a comparison, one of the last significant tornadoes in Ontario caused roughly $35 million in insured damages.
With this being said, it’s clear that tornadoes pose quite a considerable risk to homeowners in Canada.
Does home insurance cover tornado damage in Canada?
In most cases, yes, if you have home insurance tornado damage is likely covered; however, did you notice how we used the word “most”?
Although many providers do offer wind damage coverage, whether you’re protected or not depends on the type of home insurance you have.
Named-perils home insurance
Let’s start with named-perils home insurance.
As the name implies, named-perils home insurance is a type of coverage that protects homeowners from risks and perils (an insurance term for unforeseeable events that can damage your property) that are listed on their policy.
For example, if you feel like you’re at risk of a particular risk or peril, you can add that to your named-perils insurance policy.
If you have named-perils home insurance and want to protect yourself from tornado damage, you can talk to your Surex insurance advisor about adding wind damage to your policy. Doing this will ensure that you’re financially covered in the event of a tornado.
Comprehensive home insurance
Comprehensive home insurance covers homeowners from all risks and perils (minus a handful of exclusions).
In most cases, comprehensive home insurance automatically comes with tornado insurance and covers the following risks and perils:
- Ice and hail
- Fire and smoke
- Damage from a vehicle, fallen aircraft or aircraft parts
On a similar note, most home insurance advisors tend to exclude the following risks and perils from their coverage options:
- Damage caused by war or terrorism
- Overland flood damage
- Earthquake damage
If you’d like to add one of these risks and perils to your policy, most providers offer them as add-ons (also known as endorsements).
However, it’s important to remember that each provider is different; reach out to your provider or a Surex insurance advisor to confirm what risks and perils your comprehensive home insurance policy covers.
Broad form property coverage
Broad form property coverage is practically identical to comprehensive insurance, but there’s one key difference: broad form property coverage acts as comprehensive insurance for your property and named perils coverage for the contents of your home.
This means that if a tornado damages your home and your personal belongings, you will only receive coverage if wind damage is listed on your policy.
It’s worth noting that broad form property coverage is more affordable than comprehensive home insurance. The lower price point makes it an excellent option for new homeowners that haven’t purchased many valuables (appliances, collectibles, decorations, etc.) but still want to protect their investment.
What’s the best way to save on home insurance in Canada?
The easiest way to save on home insurance in Canada is by teaming up with a Surex insurance advisor. Our experienced advisors have seen and heard it all when it comes to home insurance, giving them the expertise necessary to help you find and compare the best quotes in the industry.
How do our advisors help you save on home insurance? For starters, our team leverages their working relationship with Canada’s top home insurance providers. Doing this gives us access to the best deals in the country.
Contact a Surex insurance advisor today to learn how you can save up to 25% by bundling your home and auto insurance.
Is tornado coverage worth it?
Long story short, yes, tornado coverage is very much worth it, especially if you live in an area that is prone to high-velocity winds.
A tornado can cause an immense amount of damage to your property, so, you need to do everything in your power to protect it.
Thankfully, protecting your home from tornadoes is easy; all you need to do is ensure that your home insurance policy covers wind damage. You can do this by purchasing comprehensive or broad form property coverage. If these options aren’t feasible, you can invest in named-perils home insurance and add wind damage to your policy.