Tennessee Homeowners Insurance

Last Updated on September 29, 2020 by Andrew Lee

In the State of Tennessee, locals and tourists alike get to pick from an extensive list of things to do, activities to participate in, and sights to see. Well known for its music and breweries (Jack Daniel’s, just to cite an example), TN really does sparkle with its own charm and beauty. And these are just some of the many other reasons the state, according to Livability, boasts of having 67% of all its homes classified as “owned.”

With this high percentage of owned houses, you should no longer wonder why consumers here highly regard and depend on their Tennessee homeowners insurance policy.

Premiums 101: What it is and statistics you should know of

The term “premiums” refer to the actual amount of money people pay towards their insurance policy. This is also the “income” insurers make from the promise they have with customers, which is to cover the costs of repairs/replacements for property damage or loss, as well as protect policyholders from potential legal liabilities. A lot of individuals typically pay for their insurance on a monthly basis, but there are other payment options to choose from, such as quarterly, semi-annually, and yearly.

Homeowners paid an average of $942 of insurance premiums compared to $952 average nationwide

In summary, TN homeowners continue to pay an amount of premiums lower than several other states, as well as the country in general. It’s vital you know this, as you want to make sure you have enough coverage but not overpaying.

One of the fastest methods to secure your home and possessions

The term “premiums” refer to the actual amount of money people pay towards their insurance policy.

In this Tennessee Department of Commerce & Insurance guide compiled by the National Association of Insurance Commissioners, it cited that, for many people, homeowners insurance is an important purchase. And the two primary reasons for this is because first and foremost, consumers want to make certain their biggest, most expensive investment – their home – and all the valuables it houses remain protected.

Then, there is also the fact that many home lending or mortgage companies require their borrowers to purchase it. Although mandatory, homeowners should consider it more of a useful precautionary means than just an added, long-term expense.

All in all though, homeowners insurance provides residents of the State of Tennessee with one of the quickest, easiest, and most practical methods to secure their home and its contents.

Key Facts and Market Trends in Tennessee: In 2013, the National Association of Insurance Commissioners (NAIC) released the results of a study that assessed the average homeowners insurance expenses in all of the 50 states in the country, plus the District of Columbia. During this time, the national yearly average expenditures amounted to $1,096. The State of Tennessee averaged at $1,090.

Insurance companies in the state

The insurance market in the State of Tennessee is quite tight and competitive. According to a separate NAIC-conducted study, there are 61 domestic insurance companies in the state. The number of licensed foreign insurers, on the other hand, total to 1,468.

There is an advantage to this extensive selection: higher chances of securing lower rates, which means lower premiums, since insurance companies have to remain competitive with their pricing if they want to remain in business.

The bottom line

All these facts and digits will help you secure a much better Tennessee homeowners insurance policy, whether you’re in the market as a first-time buyer or a veteran wishing to conduct business with another insurance company.