Home Insurance in Tennessee

Are you protecting one of your biggest investment? Getting a comprehensive home insurance policy is a vital part of responsible home ownership. Obrella makes the home insurance policy shopping experience easier than ever before. Connect with insurance experts who can point you to offerings from top regional providers and answer any questions you might have in one simple call. Experienced in the complexities of Tennessee home insurance policies, licensed agents can even bind your policy over the phone.

Tennessee Home Insurance Costs

Annual home insurance premiums in Tennessee average $1,008, which is right in line with the national average of $1,034 per year. Those rates place Tennessee as the 20th most expensive state in the nation in regard to the cost of annual home insurance premiums.

• Median Home Value: 147,500
• Household Income: 43,716
• Percent of Income on Home Ownership: 28.40%

Tennessee homeowners appreciate the sense of security that comes with home insurance, especially when the median home value in Tennessee is $139,200. In Tennessee, homeowners spend a little more than 28% of their overall household income on home ownership, and the median household income in Tennessee is$44,297. This makes the Volunteer State the 20th least expensive place to own a home when it comes to home ownership costs.

While home prices are low, fires, windstorms, and other disasters can be just as devastating as they are in higher cost states. Unfortunately, a single disaster could destroy hundreds of thousands in property when you roll in personal property like your clothing, furniture, and cars. If there’s an accident on your property, a lawsuit could be just as devastating to your home if you’re not properly covered. Call [mapi-phone-link /] today.

What Goes into the Cost of Homeowners Insurance in Tennessee?

Insurance companies determine your premium based on the amount of risk they take on by insuring your property. The higher the risk, the higher the premium. As you may have noticed, different companies can look at the same risk and come up with different prices. This is partly because some companies are larger and can absorb more risk in general. Different companies also place more weight on some factors than others.

Home insurance providers assess risk by looking at both the property itself and the surrounding area. Your provider will evaluate your home’s size, date of construction, and add-ons like swimming pools and guest homes. Environmental factors, local crime rates, and even the cost of other homes in your area can also affect your premium. For example, if you live near a flood-prone river, you can expect to pay a higher insurance premium than someone who lives on higher ground nearby. Likewise, living in an area with high rates of vandalism and home burglary makes you more likely to be the victim of a theft, so you’ll probably wind up with a higher premium. Something as simple as how far your home is from the nearest fire hydrant can change how much you pay for a homeowners policy.

Fortunately, your homeowners insurance premium can be lowered with a few proactive steps on your part. You can install home protection devices like surveillance cameras, motion-sensor lights, or a security system to lower the risk of your home being attacked, which would in turn lower your rates. Improving your credit score can also help in some cases.

Most importantly, if you live in an older home and you want to give your home a facelift, don’t forget your plumbing, roof, and electrical. Many insurance companies will ask when you last replaced these parts of your home and what type they are. If these systems are too old, some insurance carriers may not issue dwelling coverage at all.

Read more: Does Car Insurance Cover Electrical Fires?

What Homeowners Insurance Policy Options Do Tennessee Residents Have?

The majority of Tennessee home insurance companies have multiple coverage options to pick between. Here are a couple of those options:

• HO-1: Limited Coverage
  • An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
• HO-2: Basic Policy
  • HO-2 policies are designed to provide coverage in the event that your home is affected by any of the 16 classified disasters. This is a named peril policy. So if the cause of the damage is not specifically named in your policy, your home insurance companies don’t have to cover the damage.
• HO-3: Standard, most popular
  • HO-3 policies are open peril policies. So unless it’s named in the exclusions, the insurer will cover the damage. Keep in mind, many of the exclusions are very broad. So if you searched for something specific like a “broken water pipe”, you wouldn’t find it in the exclusions. But you might find something else that would cover water damage.
• HO-8: Older Home
  • This policy guards against declining home values by reimbursing homeowners on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
• HO-6 policies are meant exclusively to cover condos. They cover everything from the walls-in meaning flooring, carpeting, cabinets, appliances, etc. But they do not cover the building itself.
• Landlord policies can be adjusted to cover more personal property, etc. The average cost is often lower, though, because it’s focused on covering the building, but not necessarily all the liability and personal property it would if the property owner lived there.

Read more: Understanding Homeowners Insurance: Are Appliances Covered?

What is Covered By Standard Tennessee Homeowners Insurance?

Simply stated, you are only covered if the damage to your home is caused by a specific situation outlined in your policy. If your home is damaged by a flood, for instance, you will only be paid for damages if your policy specifically covers flooding. Read on to learn frequently used home insurance coverage terms to help you navigate the specifics of your policy:

• Coverage A – Dwelling
  • Covers damages to a home and any structures attached to the home, including damage to plumbing, wiring, heating, and permanent air-conditioning systems.
• Coverage B – Other Structures
  • Tool sheds, free-standing garages, fences, guest homes, and other non-attached structures are covered under Other Structures.
• Coverage C – Personal Property
  • Homeowners with Personal Property coverage will receive compensation in the event that a personal possession like clothes, furniture, or electronic equipment is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property meaning items kept in a storage facility, for example, are still protected.
• Coverage D – Loss of Use
  • With Loss of Use coverage, the homeowner can get reimbursed for living expenses during home repairs.
• Coverage E – Personal Liability
  • If a homeowner is sued and found legally responsible for damages or injuries to another person, Personal Liability will cover the homeowner’s financial loss.
• Coverage F – Medical Payments to Others
  • In the event that someone is hurt on your property or by your pet, this coverage will take care of any resulting medical bills.

Tennessee Insurance Resources

Tennessee Department of Commerce and Insurance:Oversees insurance activities throughout Tennessee. They offer a selection of educational programs about insurance and insurance-related issues. Another primary purpose of the department is to investigate and mediate insurance claims and disputes, and validate that insurance companies and agents are acting in accordance with state law.