The state of Tennessee is rich in land accompanied with different climates. Tennessee is divided into 3 Grand Divisions that contrast from bustling cities, to bountiful forests leading to awe-inspiring mountains, Tennessee has it all. The variation of climates contributes some of the higher risk factors when purchasing homeowners insurance.
East Tennessee is home to the famous Smokey Mountains. A popular tourist attraction reaching 11.3 million visitors recorded in 2016, the Smokies are one of the most visited national parks. Homeowners living here experience mountain temperatures and humid continental climate. These climates bring cooler temperatures and 16 inches of snow a year leading to a higher risk for frozen pipes, ice dams and a variety of other hazards. Rural areas are often a large distance from fire departments which can be a high-risk for some homeowners simply due t the fire hazard. The Smokey Mountain fires in 2016 were an unpredictable natural disaster that caused 14,000 homeowners to evacuate from their homes. In result of these fires 2,500 structures were damaged along with 17,000 acres of forest destroyed. This fire burned hundreds of homes in high risk areas and caused thousands of homeowner’s claims. Natural disasters are a contributing factor in claims and annual premium increases.
Middle Tennessee has about 50% of the US population within 600 miles of it. With Nashville being the state’s capital, it is home to 691,243 residents. Heavily populated cities can often be a high risk for homeowners in many areas due to crime. However, while the advantage of being close to fire departments and police precincts is helpful, some urban areas have a higher risk of theft claims for some homeowners.
West Tennessee has vast regions from rolling hills, to busy cities, to popular rivers. Often referred to as the Bluff City Memphis one of the most popular cities in West Tennessee. Situated along the Mississippi & Tennessee River, West Tennessee has a wide variety of hazard that can contribute to homeowners claims such as flood plains, lowlands, and swamp land. All of these are a potential risk for homeowners. Rarely ever seeing snow, the most of the Western part of the state is only has about 5 inches of snow fall a year. This lower risk from snow and colder temperatures helps offset some of the higher risk factors in this part of the state.
Tennessee is not a state with a FAIR Plan but luckily Tennessee is a state with a thriving and competitive insurance market. Regardless, with all FAIR Plans, consumers are urged to try to find coverage in the private market.