Homeowners Insurance Tennessee: Everything You Need to Know

Homeowners insurance is an essential purchase for anyone who owns a home in Tennessee. It provides financial protection against damage to your home, as well as liability protection in case someone gets injured on your property. In this article, we’ll cover everything you need to know about homeowners insurance in Tennessee.

What Does Homeowners Insurance in Tennessee Cover?

Homeowners insurance policies typically cover four main areas:

1. Dwelling coverage
2. Personal property coverage
3. Liability coverage
4. Additional living expenses coverage

Dwelling Coverage

Dwelling coverage is the part of your policy that covers damage to your home’s structure, including the roof, walls, and foundation. It also covers any attached structures, like a garage or deck. In Tennessee, dwelling coverage is especially important because the state is prone to severe weather events, like tornadoes and thunderstorms, which can cause significant damage to homes.

When you purchase a homeowners insurance policy, you’ll choose a coverage limit for your dwelling coverage. This limit should be enough to rebuild your home if it’s completely destroyed. It’s important to periodically review your dwelling coverage limit to make sure it’s still adequate, as the cost of rebuilding your home can increase over time.

Personal Property Coverage

Personal property coverage protects your belongings, like furniture, clothing, and electronics, in case they’re damaged or destroyed by a covered event, like a fire or theft. The coverage limit for personal property is typically a percentage of your dwelling coverage limit. For example, if your dwelling coverage limit is $200,000 and your personal property coverage limit is 50% of that, your personal property coverage would be $100,000.

It’s important to take an inventory of your belongings and estimate their value when choosing a personal property coverage limit. You may need to purchase additional coverage for high-value items, like jewelry or artwork.

Liability Coverage

Liability coverage provides financial protection if you’re sued for injuring someone else or damaging their property. For example, if someone slips and falls on your icy driveway and sues you for their medical expenses, your liability coverage would help pay for those expenses. Liability coverage also extends to legal fees and court costs.

In Tennessee, the minimum liability coverage required by law is $100,000, but it’s a good idea to purchase higher limits if you have significant assets to protect.

Additional Living Expenses Coverage

Additional living expenses coverage, also known as loss of use coverage, helps pay for living expenses if your home is damaged and you can’t live in it while repairs are being made. This coverage can include things like hotel stays or rental payments. The coverage limit is typically a percentage of your dwelling coverage limit.

What Doesn’t Homeowners Insurance in Tennessee Cover?

While homeowners insurance covers a wide range of perils, there are some things that aren’t covered by standard policies. These include:

• Flood damage: Most homeowners insurance policies don’t cover flood damage. If you live in an area prone to flooding, you may need to purchase a separate flood insurance policy.
• Earthquake damage: Like flood damage, earthquake damage is typically not covered by standard homeowners insurance policies. You may need to purchase a separate earthquake insurance policy.
• Maintenance issues: Homeowners insurance policies don’t cover damage that results from lack of maintenance, like a leaky roof or a malfunctioning HVAC system.
• Acts of war: Homeowners insurance policies don’t cover damage caused by acts of war or terrorism.

How Much Does Homeowners Insurance in Tennessee Cost?

The cost of homeowners insurance in Tennessee varies depending on a number of factors, including:

• Your home’s location
• The age and condition of your home
• The materials your home is made of
• Your credit score
• Your claims history
• The coverage limits you choose

On average, homeowners in Tennessee pay around $1,200 per year for homeowners insurance, but your costs may be higher or lower depending on your individual circumstances.

Frequently Asked Questions

Do I Need Homeowners Insurance in Tennessee?

While homeowners insurance isn’t legally required in Tennessee, it’s a good idea to purchase a policy to protect your investment in your home and your personal assets. Additionally, if you have a mortgage, your lender will likely require you to have homeowners insurance.

What Factors Affect My Homeowners Insurance Premium?

As mentioned above, several factors can impact your homeowners insurance premium, including your home’s location, age, and condition, as well as your credit score and claims history. The coverage limits you choose will also impact your premium.

How Can I Save Money on Homeowners Insurance?

There are several ways to save money on homeowners insurance, including:

• Bundle your homeowners insurance with other insurance policies, like auto or life insurance, to receive a discount
• Raise your deductible to lower your premium
• Install security features, like a burglar alarm or smoke detectors, to lower your premium
• Shop around and compare quotes from multiple insurance companies

What Should I Do if I Need to File a Claim?

If you need to file a claim, contact your insurance company as soon as possible. They will guide you through the claims process and explain what documentation you’ll need to provide. It’s important to document any damage to your home and belongings with photos or videos.

Conclusion

Homeowners insurance is an essential purchase for anyone who owns a home in Tennessee. It provides financial protection against damage to your home and personal property, as well as liability protection in case someone gets injured on your property. Be sure to carefully consider your coverage limits and options when purchasing a policy, and periodically review your coverage to make sure it’s still adequate.