In 2021 alone, the U.S. had 1,376 tornadoes – up more than 300 from the previous year. They caused billions in damage for homeowners across the country, leaving a lasting financial impact.
Home and renter insurance policies often don’t provide full coverage, resulting in massive out-of-pocket expenses for families with limited cash savings and immediate expenses to deal with – like temporary housing, childcare, tree removal and their insurance deductible – that cannot be ignored and cannot wait 30 or more days for the claims process to unfold. Families need flexible cash, and they need it fast.
The 2022 tornado season is upon us, and it’s expected to be even busier than last year. So, policyholders need help understanding their coverage and where they may have gaps or face risks that can endanger their financial resilience.
Identify where current coverage falls short
As you advise your clients, it’s imperative to know what their current policies do and do not cover to ensure they’re adequately covered when disaster strikes. An average home is underinsured by 20%.
In addition, just because severe weather strikes doesn’t always mean that the insurance they have will cover it. Almost 70% of disaster damage since the '80s hasn’t been covered by insurance.
See also: Unusual Weather We're Having, Right?
Limited cash on hand
The average U.S. household savings is only $3,800, and 60% of Americans have no emergency fund. Recovering from a tornado, on the other hand, is often much more costly. The typical price for tornado repairs can range from $4,600 to $17,000. Your clients’ deductible can range anywhere from 5% to 30% of their home’s insured value.
And, while homeowners wait for a claim to be processed, they can burn through their emergency funds.
Reasons like these are why products like Recoop Disaster Insurance were created, delivering quick cash that insured homeowners can access within days of making a claim following a declared disaster. This recovery cash is designed to be flexible so families can do what they need to get back on their feet swiftly.
With anticipated severe weather on the horizon, no one is immune from the damages caused by tornadoes. Instead of rolling the dice and helping clients after a tornado occurs, help them prepare before the busy season arrives.
Not only will your clients appreciate that their home will be covered no matter what happens, they’ll be thankful they have an insurer considering their overall financial wellbeing.