Home Insurance Pricing on the Brink


The days of buying homeowners insurance at a so called “competitive rate” in the state of Tennessee are long gone. Renewals for polices are already seeing price increases in the 15 to 25% range with some major carriers hovering around 30%. Deductibles are being raised and separate wind deductibles are even being being considered by companies. Roof will also see some definite re-tooling  Why ? It is simple. Losses across the board in the state have placed a major dent in company’s reserves and it has not just been this year. Hail, wind and water are the culprits and it is not letting up. When an area is hit hard rates will rise for everyone. That’s just the way it goes. 

Home insurance has been priced too cheap over the past 30 years and now companies are wising up. To think you can buy a policy to cover a $300,000 home for under a $1,000 a year is not financially sound for the company side. Plus, consumers are uneducated in the ways personal insurance. They tend to compare it to health insurance where everything possible is turned in as a claim and once you have met your deductible then you are playing with “house money”. That’s not the way it works for auto and home insurance and consumers are going to learn the hard way when they can’t get their million dollar home insured anywhere but the sub standard market (and the prices is double and triple what they are paying now).

Insurance is not meant to cover maintenance items. It is meant to cover insured for disasters and issues like fire, wind, theft, and vandalism. Somewhere along the way it got out of hand. And the consumer is now going to see a major change that will send shock waves through the area. As an agent, I hate it but I understand it –  and we will have to be proactive in our education to the consumer and walk them through this minefield. Buckle up – it is going to be quite a ride. For more  information about how we can help you manage your personal insurance portfolio, contact us at FPR Insurance today.


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