Is the “Cheapest” Homeowners Insurance the Right Insurance for You?

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A common misconception when it comes to buying home insurance is that it’s all the same, so you should find the best price.

The truth is, a change in price is really a change in coverage; meaning, it’s rarely in your best interest to simply shop on price. It is Important to shop based on need and meet that with what you can afford (and not afford to lose!).

Does the “cheapest” mean the best insurance for you?

A change in price is a change in insurance coverage. This doesn’t necessarily mean that cheaper or more affordable insurance is synonymous with lower quality insurance. Less expensive insurance just means that you are purchasing less coverage. As long as you purchase the insurance that covers all your needs, then there’s no need to pay extra for coverage you’ll never use. In a sense, this would be similar to purchasing a lunch box when you work from home – if you’re not taking your lunch from point A to point B, you don’t need it, and the quality of your food at home is going to be just as good, if not better. 

In addition, most insurance agents are going to have the same rates across the agency for the same coverage. For example, insurance agencies in Nashville, TN including Farmer’s, State Farm, All-State, etc., are going to provide the same exact price for the same exact insurance in the state. The only difference here is that their coverage packages or bundles might differ from agency to agency. 

An important thing to remember though is: insurance rates are set and regulated by the state, so if you find a rate that seems “too good to be true” then it probably is. 

So, let’s take a look at what could happen if you go with “cheaper” insurance and forgego coverage you need or coverage that is not included in your homeowner’s insurance. While a majority of these instances will never occur, there is always the possibility that they could. It is insurance we’re discussing after all! 

When that happens, the out of pocket costs are going to make you wish you had the following coverage options:

Flood damage 

Flooding is the most expensive and most prominent natural disaster, occurring in 98% of counties. Despite this, only 15% of homeowners have flood insurance coverage.

Earth movement (earthquakes, sinkholes, etc.)

If you don’t have the money to rebuild your house, repurchase personal property, or pay for temporary housing costs, earth movement insurance is going to be key. While people often associate California with earthquakes, 42 other states are at risk as well.

Some dog/pet attacks

There are an average of 2,400 dog attacks per day. Again, while you might not think it will happen to you or your pet, stats show that it’s happening each and every day.

Pricey jewelry 

Often, minimal coverage only covers up to $1000 in theft. 

Sewer backup

Sewer backups can cause thousands of dollars in damage. If your home is susceptible to tree roots, older sewer systems, or combined pipelines, you’re at risk for sewer backup.

Damage from pests 

You’re susceptible to a variety of pests during all seasons: from rats in the winter to wasps and ants in the summer, you’re going to want to be covered year round.

 

Does a lower price automatically mean lower quality?

Unlike tangible products, cheaper insurance doesn’t mean lower quality; it just means you might not be fully covered when things happen (like from the list we mentioned above). You should be confident that the insurance you buy from Farmers for example is top quality, but you also want to ensure it covers everything you need. 

Would you rather forgo covering jewelry and go all in with pest insurance? These are questions you should ask yourself when deciding the coverage that is most important to you.


How do you find the best insurance for you?

First, you’re going to want to contact your preferred agency. Try searching “affordable insurance nashville tn,” for example, or ask for recommendations from your friends or family. From there, establish a great relationship with an insurance agent. Your agent should surpass your expectations when it comes to communication; full transparency and availability are characteristics you should look for in your insurance agent. If they’re not holding up their end, you’re only hurting yourself by staying with them. There are plenty of agents and agencies that would be happy to help you find the right plans for you.


When you’ve found the right agent and right plan for you, ensure you look for anything that could indicate additional expenses down the road, including:

  • Does your policy have replacement coverage?
  • Does your policy have a separate deductible for wind and hail?
  • Do you know the ins and outs of what each policy covers and what it doesn’t?


Knowing all of these facts is going to factor into your quote and overall insurance experience. Want a downloadable guide that provides you with the questions and points you’ll need to make the best insurance decision? We’ve got you covered. 

Tennessee Homeowner Insurance

Insurance can be confusing, and confusion can lead to spending more on your home insurance than you need to. So be sure to ask questions so you can fully understand everything you need. 

A common misconception when it comes to buying insurance is that with enough shopping around you’ll find the best insurance for the cheapest price. The truth is, a change in price is really a change in coverage. When you’re making such a significant investment in home ownership, don’t you want to be fully protected?

Have a question we didn’t cover here, including how much home insurance is in Tennessee? Feel free to send us a message  or give us a call at (615) 250-2723 and we would be happy to answer it. 

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