*This blog has been updated as of October 2024 to reflect new information.
If you are interested in Tennessee homeowners insurance, it most likely means you have purchased a new home. Congratulations! It’s a big step, but a rewarding one. Whether or not you’ve owned a home before, you might have a lot of questions when it comes to policies. As a full-service insurance agent for Middle Tennessee, we’ve come across many valid questions over the years. There is a lot to consider when you buy a new house, and we want to help make one portion a little easier — choosing the best insurance policy for your home.
How Much is Homeowners Insurance in Tennessee?
Unfortunately, this doesn’t have a simple answer. There are mitigating factors that will affect the pricing, such as location. The most significant contributor is the cost of your home. However, when you choose the deductible and liability, you can make the price of your premium go up or down.
Some owners might try to get the minimum amount necessary, but we would advise you to get what you need based on your wants. Call a trusted insurance agent and come in with a quote in mind as well as a list of attributes that are important to you. Together, you can work out the most cost-effective solution.
How Much is Tennessee Home Insurance Per Month?
The average annual rate for home insurance in Tennessee can range from $2,155 to $3,175 (higher than the national average). Again, it can vary a lot depending on where in the state you live and what you want from your insurance coverage. How much you spend per month could range as well, depending on where you fall in that scale. You could safely assume you are going to pay somewhere around $195 per month.
Is There an Average Deductible, and Can I Save Money by Increasing or Decreasing It?
Most homeowners will have and an option of $1,000 deductible or higher. Remember, the deductible is the money you will pay out of pocket before your insurance kicks in. The smaller the number, the more your monthly premium will cost.
Does it Matter What Type of Home I am Insuring?
Absolutely. The actual style isn’t as important as the square footage or the type of materials used to build the home. Homeowners insurance is around to help in case of an emergency. If your house is built with expensive or rare materials, it will cost a little extra to insure. Some assets could be considered a higher liability and might require more premium. Those could include pools, trampolines, and homes that are older.
I’m Shopping for New Insurance. Does Prior Insurance History Affect Pricing?
What you’ve claimed on previous insurance policies is referenced when you purchase new homeowners insurance. What they are looking for is:
- Frequency of claims
- How long you had coverage
- The insurance score
Your insurance score is pretty important. It gives your insurer a quick glimpse into your history and helps them determine what your premium should cost. It will evaluate:
- Payment history
- Credit history
- Your current balance for each
- The number of credit accounts
- Identify bankruptcies, foreclosures, or collection activity
Will Making an Insurance Claim Increase Costs?
Most likely, but it will also depend on the type of claim you make and how long you’ve had the policy. It’s possible you could expect to have a 20% increase. Sometimes, insurance agencies only put a temporary increase on your premium. You may qualify for your policy to go back down in three to five years.
Ways to Save Money on Home Insurance
There are ways you can save money when you are taking out your home insurance policy.
Choose a Higher Deductible
As we previously mentioned, the higher the deductible, the more you can save on your premium. Insurance agencies will reward those who are willing to spend a little more out of their own pocket by reducing the monthly costs.
Get More Than One Policy
Almost all insurance agents will offer some form of bundle discount. That means you can get your car and life insurance tacked on and save more money. Decide what’s most important to you and ask your home insurance agent what options they can offer you.
Buy a Newer Home
Most homes that are less than 50-years old are cheaper to insure. The reasoning is they are built and fixed with materials that should still be in good working condition. Wiring and normal wear and tear will depreciate the value of an older home, costing you more on your premium.
Update Your Home
If you have an older home, you can make updates yourself that will help bring monthly costs down. Wiring is an excellent place to start. So is plumbing. Both can cause a lot of damage. Additionally, you can add an alarm system to help reduce your rates by as much as 20%. Adding a security device can save as well.
It’s Been Awhile Since Filing a Claim
Insurance is around for those unexpected moments. If there are fixes to your house that you can pay out of pocket, it might help save you money in the long run. Filing a claim can make your policy go up. Do the cost analysis of paying it yourself versus filling it with your insurance.
Find Affordable Home Insurance Tennessee
Getting the right insurance policy is important. At Eagle Insurance & Financial, we are here to help you find the best homeowners insurance suited for your needs.
