Tennessee Homeowners Insurance Guide

According to the Homeowners Insurance Institute, the average Tennessee homeowner’s insurance premium in 2005 was $692. In 2006, the National Association of Insurance Commissioners estimated that Tennessee home insurance customers in the Nashville, TN area pay the 25th least expensive homeowners premiums in the United States. Nashville renter insurance customers were estimated to pay the 12th most expensive renter’s insurance rates in the country.

To get an idea of Tennessee demographics, here are some Nashville statistics:

• The average household in Nashville has 2 residents
• The average home value in Nashville, TN is $129,163
• The average household income in Nashville is $39,366
• The average home elevation is 440 feet in Nashville, TN

Tennessee Homeowners Should Consider Obtaining Flood Insurance

Flooding is the leading cause of property loss from natural disasters in the United States every year. In December 2008, a retention pond wall collapsed at a power plant in Harriman, Tennessee and flooded 15 homes nearby. In August 2001, a storm caused flash floods up to 20 feet deep that washed out homes and roads in eastern Tennessee. Unfortunately, most homeowners learn too late that protection against flood loss is not part of their normal insurance protection package. Flood insurance can be purchased through your local insurance agent. Generally speaking, you can insure your home and all its contents against flooding for less than it costs to insure your car.

Important Facts About the National Flood Insurance Program:

• Everyone should have flood insurance. Even if you don’t live in a designated flood zone you can purchase flood insurance if your community participates in the NFIP. Anyone can get flooded.
• Flood damage is not covered by homeowner’s insurance policies. It is worthwhile to protect your home, business, and belongings with flood insurance. You can insure your home for up to $250,000 for the building and up to $100,000 for the contents.
• Contents coverage is separate. It is not automatically included with building coverage.
• Flood insurance pays even when no disaster has been declared.
• Flood insurance is affordable. The average flood insurance policy costs about $300 a year for about $100,000 of coverage.
• There is a 30-day waiting period before a flood insurance policy becomes effective.

For more information, call the National Flood Insurance Program toll free at 1-800-720-1090.

Reasons Why You Need Home Insurance

There are many reasons why you need to have home insurance. Although many may believe it to be an unnecessary expense, it is something that you don’t want to be without. Below are several reasons why spending your hard-earned money on home insurance is a worthwhile investment:

• Natural disasters. It may seem like a longshot, but natural disasters occur much more often than you think. Floods, fires, hurricanes, and tornadoes are just some of the many events that happen every year. It’s smart to be prepared and don’t assume that your home won’t be damaged should a natural disaster occur.
• Theft and robbery. Even in the nicest neighborhoods, break-ins happen. And in this economy, where many people are out of work and without money to pay the bills, theft is a very real threat to you and your home. If you don’t have home insurance, you cannot be reimbursed for the value of the items that were stolen from your home, or better yet, be able to recover the items themselves.
• Home insurance is cheaper than you think. The perception is that it is a large expense. However, it can be tacked on to other insurance plans (such as your auto insurance) at a nominal cost.
• If a worker gets injured inside your home, your insurance will cover medical expenses. If you are adding an addition to your house or doing some remodeling, make sure you are covered should something happen.
• Peace of mind. If nothing else, having home insurance allows you to relax, knowing that you are covered should the unthinkable occur.