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Tennessee Home Insurance

top-homeowners-coverageTennessee homeowners insurance goes a long way in protecting your investment. The Tennessee home insurance market has changed in the past few years. For instance, the recent spate of natural disaster saw homeowner insurance carriers in Tennessee recording massive losses. There is no standardized rate in Tennessee and therefore, carries charge different rates.

The Dynamics of Homeowners’ Insurance in Tennessee

In the aftermath of the tornadoes and large hail storms that were experienced in Tennessee in 2011 and 2012, insurance companies in the state were forced to make large payments to the affected homeowners. As a result, the carriers had to device ways of becoming profitable once more. The policies implemented by these companies have gone a long way in defining the state’s insurance market.

Homeowners’ insurance rates have been on the rise. This is a result of the fact that insurers are trying to raise money to cover any catastrophic events that might occur in future. Besides this, many companies have undertaken policy changes aimed at reducing coverage for hailstorms and wind. Some companies limit roof payouts by not offering full replacement costs on roofing.

home-insurance-pricesMinimum deductibles have also been significantly increased to an average of over $1,000 per occurrence. Besides this, some Tennessee insurers have exclusively restricted new policies to clients who package their auto and home insurance together. Such firms require you to place your car coverage as part of a larger package for you to benefit from your homeowner’s insurance.

Underwriting guidelines have also been tightened by insurance companies in a bid to lower the number of claims that can be accepted for both renewal and new customers. Most Tennessee insurance have stopped admitting new clients who have made more than two homeowners insurance claims in the last three years.

Homeowners’ Insurance in Tennessee Vs. The Rest of the Nation

A recent research conducted by the National Association of Insurance Commissioners indicates that on average, homeowners insurance increased by 3.3% in 2014. Florida homeowners paid the highest insurance premium ($2,005) while Oregon homeowners paid the lowest ($574). Tennessee homeowners paid an average of $1,139. On average, American homeowners paid $1,132 in 2014.

That year, 5.3% of insured homes in America had a claim with property damage including burglary and theft accounting for nearly 98% of those claims. Most homeowners’ insurance companies across the US do not provide coverage for sinkhole claims. Nonetheless, insurers in Tennessee are required to offer this coverage.

Saving Money on Tennessee Home Insurance

There are several strategies that you can use to save money when purchasing a homeowners’ insurance policy. It is advisable to raise your deductible since the more money you can afford to pay, the more you save. You can have a deductible of up to $10,000 if you can cover those costs.

Buying your car and home insurance from the same company makes you eligible for discounts of up to 15% off your premium. In addition, avoid areas that are prone to natural disasters and also ask your insurance company whether it offers group coverage through businesses or even alumni associations.