The last several years have seen rather dramatic changes to the homeowners insurance market in Tennessee. 2011 and 2012 saw enormous homeowners insurance losses for virtually every carrier operating in the state as Tennessee experienced a significant increase in the number of natural disasters. In particular, Tennessee was subject to several large hail storms and tornados well beyond historical averages.


So as a result of multiple years of poor performance, insurance companies had to come up with different ways to become profitable again. The insurance companies have a wide variety of options at their disposal, and below are some of the ones have occurred:

Increased rates. Most companies were forced to increase their rates to make sure that they had enough to cover future catastrophic events.

Policy changes. Many companies began to change their homeowners insurance policies to reduce coverage for wind and hail storms.

Companies, such as Farm Bureau, no longer offer full replacement cost on roofing (see an article from the NBC affiliate WBIR in Knoxville, Farm Bureau Insurance to limit roof payouts).

Raise deductibles. Many companies have increased minimum deductibles on homeowners insurance to $1000 or more per occurrence!

Require  multiple policies. Several companies have restricted new homeowners policies to only customers that package their home and auto insurance together.

Currently, two of the companies we represent, Travelers and Cincinnati Insurance, both require that you place your auto insurance with them as part of a package in order to write your homeowners insurance.

Tighten underwriting guidelines. Some insurance companies have reduced the number of prior claims that they will accept for both new and renewal customers. Many will not take on new customers that have 2 homeowners insurance claims within the last 3 years.

Our agents are knowledgable and up to date on all of the changes affecting homeowners insurance in Tennessee. Your home is most likely your greatest asset, so take a few minutes to sit down and make sure that you know what you have. If you’re not sure how to assess your policy,  your rates have increased, or your policy was changed, call us today at (615) 383-8874 to see if we can find you a better homeowners insurance policy!