Policy Considerations for Tennessee Homeowners

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

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 waters up to 20 feet deep that washed out houses and roads in eastern Tennessee. Unfortunately, most residents learn too late that protection against this kind of loss is not part of their normal insurance protection package. This option can be purchased through your local agent. Generally speaking, you can insure your dwelling 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 protection. Even if you don't live in a designated zone you can purchase this add-on if your community participates in the NFIP. Anyone is susceptible to water damage.
• Flood damage is not covered by policies. It is worthwhile to protect your home, business, and belongings with this add-on. You can insure your house 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.
• It pays even when no disaster has been declared.
• It is affordable. The average 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.