Category: Home Insurance

“It’s a seller’s market” is a term you’ve probably heard lately. Across East Tennessee, the average home value has gone up by about $73,000, with sale prices in early 2021 increasing by over 5% compared to last year according to the Federal Finance Housing Agency (FFHA). While an increase in inventory in 3^rd Quarter may make an impact, there are no signs of a major “cooling” of the market. So, what does all this mean for your insurance? It depends on several factors.

Market Value vs. Replacement Cost
Generally, an increase in the market value of your home will not have a direct impact on your insurance coverage. That’s because your policy will likely have coverage based on replacement costs. However, replacement costs may be different in the current market, as there are worker and supply shortages throughout the construction and renovation industry.

Increased Value Due to Renovations
Have you redone your bathroom or kitchen? Added a hot tub or maybe a garage or unattached structure like a shed? These are perfect examples of when your coverage needs to be reviewed. Replacement costs for new rooms, structures, and fixtures will likely be different than what may be covered on your current policy.

Change in Your Risk
With new neighborhoods and developments being built, there may be changes in the risks to your property. For example, flood risk can be higher in heavily paved areas that do not allow for adequate drainage. Earth movement can loosen trees and even increase risk for sinkholes. It’s important to consider how these factors may impact your own property, even if you’re not directly a part of the construction.

Consulting with your insurance agent to review your policy’s coverages is an important step for both the renewal of your policy and your own annual financial review. Make sure you’re letting your agent know of changes like the above, as well as other purchases, additions, or alterations that might impact what you need covered. Don’t wait for a claim to find out you needed more coverage!

Need help with an insurance review? Give us a call at 865.453.1414 and we’ll help you start the process!

Scientific and architectural advancements are making homes safer and more durable than ever. For instance, houses are made with flame retardant materials that lower the chances of the home burning to its foundation. Roofs are no exception to these advancements, and choosing the right roof for your home might actually save you money on your home insurance costs.

Meet the Impact Resistant Roof

Impact resistant roofs (IRR’s) are specially designed and tested to be impact resistant for exposure to hailstones, strong winds, and flying debris. They can be made of asphalt, metal, plastics, rubber, and recycled materials. Impact resistant roofs are rated as class 1, 2, 3, or 4 (1 being the weakest, 4 being the strongest) based on the test results. The cost of impact-resistant roofs varies based on the type you buy.

Why You’ll Want One

Impact-resistant roofs are simply more durable, no matter where your home is located. They are made to resist damages from threats that can shred conventional shingles and tear them away. Homeowners with impact-resistant roofs save money on repairs and insurance claims after big storms come through, not to mention their homes are kept safer. To top it off, most IRR’s come with a 30-50 year limited product warranty. They are more expensive than traditional roofs, but when you weigh the outcome, IRR’s are an investment worth making.

Having an IRR Could Mean Lower Premiums

When your roof is less susceptible to serious damages, your likelihood of filing a claim is smaller. For this reason, several states offer an insurance benefit for opting for an impact resistant roof. This is especially true in states where weather patterns are likely to bring severe hailstorms. Ask your agent if you can save on your homeowner’s insurance premium by upgrading to an impact-resistant roof.

Your roof is one of your home’s most important elements, so you’ll want to check it for missing, curled, or damaged shingles. If you aren’t sure what kind of shape your roof is in, schedule a professional roof inspection. If you know you’re in the market to replace your roof, contact one of our agents today to see how an IRR can help you save on insurance costs!