Homeowner’s Insurance Tennessee

Homeowner’s Insurance Tennessee

Homeowner's Insurance Tennessee

Homeowner’s insurance is a financial protection policy that pays a lump sum if your home is damaged or destroyed by fire, weather, theft or other disasters.

Most homeowners who have a mortgage are required by their lender to purchase homeowner’s insurance. But there are different types of home insurance with various types of coverage. Understanding exactly what is and isn’t covered, and the amounts of coverage for the different components of the policy, is crucial before deciding on a policy.

Here’s a summary of the basics of homeowner’s insurance for single-family homes. Keep in mind that apartment insurance, or condominium insurance, has some key differences that we’ll cover below.

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Components of Homeowners Insurance

Homeowners insurance policies actually consist of four different types of coverage:

  • The property itself
  • The contents of the house – your personal belongings
  • Legal responsibility to protect yourself from accidents that others may incur in your home
  • Loss of use, to pay for temporary housing while your home is being repaired.

Types of Coverage

Although all policies offer coverage in these four categories, there is more information about what is covered and under what circumstances. To understand what type of events will trigger your homeowners insurance payment, you must first understand the two basic types of homeowners insurance:

  • Identified Hazards: Covers only the types of disasters named in the policy:
  • Open Hazards: Covers all disasters except the exclusions specifically named in the policy.
  • The most common risks generally covered by homeowner’s insurance are:
  • Fire
  • Windstorm
  • Hail
  • Lightning
  • Smoke
  • Explosion
  • Theft or vandalism
  • Riots
  • Vehicle collision

An identified risk policy will cover them, while an open risk policy will cover them, in addition to any risk that is not specifically mentioned as an exclusion. There are also different levels of identified risk policies. A basic policy will only cover the conditions listed above, while a broader mentioned risk policy will also add:

  • Plumbing Freezing
  • Accidental water damage
  • Fall of objects
  • Weight of snow or ice

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The most common named exclusions that no homeowner’s insurance will cover are:

  • Earthquakes
  • Flooding
  • Power failure
  • War
  • Nuclear Explosion
  • Neglect
  • Ordinance of Law
  • Intentional acts

To protect against earthquakes and floods, you will need to purchase separate flood insurance or earthquake insurance. The price of earthquake or flood insurance varies widely depending on whether your home is located in a high-risk or low-risk area.

If you own an apartment or condominium, you will need a separate class of homeowner’s insurance (H06). Condominium insurance, or apartment insurance, protects the contents of your home and the floors and ceiling walls from certain types of damage. However, damage to the apartment building is covered by a different policy from the building association.

Homeowners Insurance Costs

Homeowner’s insurance costs vary by state. No matter where you live, the easiest way to reduce your homeowners insurance rate is to choose a policy with a higher deductible. The higher your deductible in the event of a loss, the lower your monthly premiums will be.

However, there are some discounts available to make homeowners insurance cheaper. If you qualify for any of them, be sure to ask your insurer when you get a quote. Many homeowners insurance companies offer discounts for:

  • First-time homeowners
  • Added security measures
  • Non-smokers
  • Couples

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For more information, call us at 1-888-851-5572. If you would like to receive a fast and free quote, visit us on our webpage!

Homeowner’s Insurance Tennessee
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