Homeowners insurance is required in the state of Tennessee and while the forms of insurance policies are the same as in other states, Tennessee offers the following additional covers in addition to the standard homeowners insurance policy:
Guaranteed replacement cost coverage
This is undoubtedly the most comprehensive cover for your home. To obtain this type of coverage, you have to agree and meet certain specific underwriting rules and conditions of the company. This may include increasing the amount of your insurance on a monthly, quarterly or yearly basis to keep up with the inflationary trends. An additional premium may or may not be required for this and if there are exclusions or conditions that apply, you may need to speak with your company or insurance agent.
Inflation Guard Endorsement
Inflationary trends are spiraling now and so is the premium you are paying on your house. If the replacement cost of your home increases with inflation so will your policy limits to maintain your cover at 80 percent of your home replacement cost.
To maintain the cover at an adequate level, some companies offer an "Inflation Guard Endorsement." This endorsement allows the insurance carrier to automatically alter your policy limit during the tenure of the policy. Normally, the higher premium is not paid until you decide to renew your policy. Even if you have this additional endorsement, check your cover limits routinely to ensure that you are adequately, but not overly, insured.
Scheduled Personal Property Endorsement
This extra cover is often termed a "personal article floater." Essentially covering all your personal and precious articles such as jewelry, furs, stamps, coins, guns, computers, antiques and other items it is advised since covering these items may exceed normal limits of your regular home insurance policy. A personal article floater will provide an estimate for each article, describe the article insured and list the excluded perils. Coverage here will be broader than the cover granted for your home insurance policy. Generally there are no deductibles applied to this coverage.
Increased Limits on Money and Securities
This policy increases the cover on money, bank notes, securities, deeds, etc.
Secondary Residence Premises Endorsement
Homeowners coverage under this policy applies to a second residence which is not covered under a standard home insurance policy taken for your primary home.
Watercraft Endorsement
This is applicable to small sailboats and outboard motor boats. Though strictly speaking this is not covered by home insurance, this endorsement enables you to broaden personal liability and medical payments coverage on them.
Theft Coverage Protection Endorsement
All protection against possible theft is widened under this policy. The contents of your motor vehicle, trailer or watercraft are covered and there is no requirement for a proof of forcible entry. This endorsement however only applies to forms HO-1, HO-2, HO-3 and HO-4.
Credit Card Forgery and Depositors Forgery Coverage Endorsement
Loss, theft or unauthorized use of credit cards (with certain exceptions) is covered by this unique endorsement. Among other things covered are the forgeries of any checks, bank drafts, promissory notes, etc., again with certain exceptions. Generally no deductible is applied to this endorsement.
Flood Insurance
Standard home insurance policies do not cover flood damage. Depending on where your home is located you can seek flood insurance through the National Flood Insurance Program. Some insurance companies also offer flood insurance. If you home is located in a flood plain, your lender should require flood insurance in case you decide to mortgage your home. Just because your home is not in a designated flood plain, don't assume you will never incur flood damage.
Earthquake Insurance
Earthquake insurance is available through most insurance companies at an additional cost. It is normally issued as an addition to the basic policy.
Windstorm Coverage
Most home insurance policies cover damage caused by windstorm and hail. However, in some coastal areas this coverage is not listed in the basic policy.
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