Key Takeaways
- Tennessee uses standard ISO homeowners forms (HO-2, HO-3, HO-4, HO-5, HO-6, HO-8)
- Tennessee requires 30 days notice for cancellation (10 days for non-payment) and 60 days for non-renewal
- Insurers cannot cancel or non-renew solely due to one weather-related claim in 3 years
- Tennessee FAIR Plan provides coverage for property owners unable to obtain coverage in the voluntary market
- Windstorm and hail coverage are particularly important due to Tennessee's tornado and severe weather risks
Tennessee Homeowners Insurance
Tennessee property insurance follows ISO standard forms with important state-specific regulations that producers must understand.
Homeowners Policy Forms
Tennessee uses standard ISO homeowners policy forms:
ISO Policy Forms Used in Tennessee
| Form | Policy Type | Dwelling Coverage | Personal Property |
|---|---|---|---|
| HO-2 | Broad Form | Named perils | Named perils |
| HO-3 | Special Form | Open perils | Named perils |
| HO-4 | Renters | N/A | Named perils |
| HO-5 | Comprehensive | Open perils | Open perils |
| HO-6 | Condo | Named perils | Named perils |
| HO-8 | Modified | Named perils | Named perils |
Exam Tip: HO-3 is the most common homeowners policy in Tennessee. It provides open perils coverage on the dwelling and named perils on personal property.
Key Coverage Components
Coverage A - Dwelling: Main structure and attached structures Coverage B - Other Structures: Detached garages, sheds, fences (typically 10% of Coverage A) Coverage C - Personal Property: Contents and belongings (typically 50-75% of Coverage A) Coverage D - Loss of Use: Additional living expenses if home is uninhabitable Coverage E - Personal Liability: Bodily injury and property damage liability Coverage F - Medical Payments: Medical expenses for guests injured on premises
Tennessee Weather Risks
Tennessee faces significant weather-related property risks:
Tornado Risk
- Tennessee averages 25-30 tornadoes annually
- Most active March through May
- EF2-EF5 tornadoes possible throughout the state
- Middle Tennessee particularly vulnerable
Other Severe Weather
- Severe thunderstorms with damaging winds
- Large hail causing roof and siding damage
- Flash flooding (flood coverage requires separate NFIP or private policy)
- Winter ice storms causing tree and structural damage
Cancellation and Non-Renewal Requirements
Tennessee has specific consumer protection requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 10 days |
| Material misrepresentation | 30 days |
| Substantial change in risk | 30 days |
| Policy in effect less than 60 days | 30 days |
| All other reasons | 30 days |
Non-Renewal Notice Requirements
| Requirement | Details |
|---|---|
| Standard Non-Renewal | 60 days before expiration |
| Reason Required | Must provide written reason |
| Weather Claims Protection | Cannot non-renew solely due to one weather-related claim in 3 years |
Tennessee Consumer Protections
- Cannot cancel/non-renew for filing one weather-related claim in 3 years
- Must provide specific written reason for non-renewal
- Policyholder can request TDCI review of cancellation/non-renewal
- Refund of unearned premium required on pro-rata basis
Exam Tip: Tennessee protects consumers from being non-renewed after a single weather-related claim. This is important given the state's tornado and severe storm exposure.
Tennessee FAIR Plan
The Tennessee FAIR Plan (Fair Access to Insurance Requirements) provides coverage for property owners unable to obtain coverage in the voluntary market:
FAIR Plan Features
| Feature | Details |
|---|---|
| Coverage Type | Basic fire and allied lines |
| Eligibility | Must be declined by voluntary market |
| Application | Through licensed Tennessee producer |
| Inspection | Property inspection may be required |
| Premium | Rates higher than voluntary market |
| Coverage Limits | Subject to FAIR Plan maximums |
Who Uses the FAIR Plan?
- Properties in high-risk areas
- Older homes not meeting standard underwriting guidelines
- Properties with adverse claims history
- Commercial properties unable to find coverage
What is the most common homeowners policy form used in Tennessee?
How many days notice must a Tennessee insurer provide for non-renewal of a homeowners policy?
What is the minimum notice required to cancel a Tennessee homeowners policy for non-payment of premium?