Winter is on the horizon and that means freezing cold temperatures. Last year, several Tennessee homeowners experienced flooding due to burst pipes, which resulted in severe water damage. In times like these, it’s vital to have a good homeowner’s insurance policy.
If you are buying a new home, this is something fresh on your mind. And the number one question you likely have is “how much is it going to cost me?”
The short answer: it depends. But by looking at the various factors involved in determining your home insurance rate, you will get a fairly good idea of how much you can expect to pay.
What Homeowners Insurance Covers
Before diving into all the factors involved in determining your homeowner’s insurance rate, let’s first briefly go over what all is covered in a homeowners insurance policy.
Most homeowner’s insurance policies will cover the following:
- Damage to your home – If you experience a fire, lightning, hurricanes or other covered disasters, you will be compensated for repairs and possibly an entire rebuild.
- Lost or damaged belongings – Clothing, appliances, furniture and most other items in your home are usually provided for if damaged in a covered disaster. Sometimes you can even receive “off-premise” liability, which will enable you to file a claim for lost jewelry or other items.
- Rent for a hotel or house during home repairs – If your home was to become so damaged it was uninhabitable, your homeowners insurance would cover the price of a hotel for you to stay in while your home is being repaired.
- Damage or injuries caused by you or your family – If you or your family causes damage to someone else’s property or person, your homeowner’s insurance will cover this too.
The Cost of Homeowner’s Insurance in Tennessee
Now that you know what homeowner’s insurance covers, it’s time to figure out how much your monthly premium will be.
Various factors Influence how much your homeowners insurance policy will cost, but here are a few of the primary factors:
- Deductible. A higher deductible plan will afford you a lower annual fee. The downside to a high deductible is that if you do have to make repairs to your home, you will fork out much more out-of-pocket money before meeting that deductable.
- Home and property. The higher the value of your home, the more you will pay. This is because you are asking the insurance company to cover more, which makes it essential to get the best possible assessment of your home’s value. The price of your belongings will also be factored in if you want those items covered in your policy.
- Roof condition. If you have a new roof, you will benefit from a lower premium, which is great news for all those who suffered roof damage in the hailstorm of 2012 and were forced to make repairs.
- Claim history. Individuals with several prior claims will pay more because they pose a higher risk to the insurance agency.
- The age of your home – You will generally pay less for newer homes, due to the fact that they are built to specific codes and have more reliable electric and plumbing.
The average homeowner’s insurance price in Tennessee is $76.25 monthly and $915 annually. By going through the multiple factors involved in determining the price of your insurance and comparing those factors to the average rate, you should be able to get a general idea of how much you will pay for homeowner’s insurance.