By David Laprad
Rising premiums, stricter underwriting and weather-driven losses have left the homeowners insurance market “in shambles,” particularly in Tennessee and Georgia, where wind, hail, flooding and legal pressures are reshaping how and whether coverage is written.
That was the message delivered Feb. 4 to members of the Chattanooga chapter of the Women’s Council of Realtors during the group’s monthly network lunch at the Walden Club, where Star Mathews made its first formal presentation as a new strategic partner of the organization.
Company representatives used the session to brief Realtors on current market conditions and to walk through common insurance red flags that can delay closings or increase costs for buyers if they surface late in a transaction.
New strategic partner
“We’re excited to join the Women’s Council and be a resource to you,” said Mark Gouge, an account executive with Star Mathews. “If you have any thoughts about how we can do that, please let us know.”
Barron Dietz, the agency’s personal lines director, opened the presentation with an overview of Star Mathews and the broader insurance landscape.
Founded in 1920, Star Mathews remains family owned and operated in its fourth generation, with headquarters in Calhoun, Georgia, and offices in Chattanooga, Ringgold, Dalton, Rome, Calhoun and Clarksville. The company recently reached 100 employees, a milestone Dietz said reflects a deliberate growth strategy rooted in the communities it serves.
Dietz said many consumers and real estate professionals are seeing the effects of a market that has tightened significantly in recent years. In Tennessee, the average homeowners insurance premium now exceeds $3,000, about 17% higher than the national average. Georgia’s average premium, he said, is only slightly lower.
Frequent wind and hail events, multiple hurricanes and a challenging legal environment in Georgia have all contributed to higher losses for carriers. Dietz cited one insurer that writes roughly $2 billion in premium annually in Georgia and paid out about $500 million after a single hurricane.
“That hit their bottom line hard,” Dietz said. “And everything trickles down to you and me when we’re paying our homeowners premiums.”
Underwriting red flags
Gouge then shifted the discussion to practical issues Realtors encounter when buyers are securing insurance near the end of a transaction. He outlined underwriting red flags that commonly slow the process, starting with roof age and condition.
Many carriers, Gouge said, will not write policies on homes with roofs older than 15 years. Others might apply a roof schedule that reduces payouts each year instead of offering full replacement cost coverage. He advised Realtors to note visible roof issues, watch for overhanging trees and gather documentation when roofs have been replaced, particularly within the past three years.
“If they’ve put a new roof on it, get that documentation and have it ready,” Gouge said, noting that doing so can speed underwriting approval.
Electrical systems were another frequent concern, especially in older homes common throughout the Chattanooga area. Gouge encouraged Realtors to determine whether electrical work has been updated, when it was done and the extent of the work. Certifications for new panels or rewiring completed within the last 10 years can help address underwriter concerns, he said.
Plumbing updates, heating and air systems and the presence of oil tanks or underground fuel containers were also cited as issues that can trigger additional scrutiny. Gouge said clarity and documentation around any updates or removals are key to avoiding surprises during underwriting.
Coverage gaps and cost drivers
Account executive Scotty Smith followed with a deeper dive into valuation, risk and policy structure, framing the information as “best practices” for Realtors working with buyers and sellers.
One common point of confusion, Smith said, is the difference between market value and insurance replacement cost. A home that sells for $300,000 might cost significantly more or less to rebuild depending on materials, labor and debris removal costs.
“Replacement cost ties to rebuild cost, not market value,” Smith said. “That cover might exceed or be lower than what the home actually sold for.”
Smith also outlined location-based risks that factor into pricing, including tornado exposure in Tennessee, flood risk near rivers, creeks and mountainous terrain, and increasing wind and hail claims. Flooding, he said, is the most common natural disaster in Tennessee.
Wind and hail deductibles are becoming more common, Smith added, often expressed as a percentage of the dwelling coverage rather than a flat dollar amount. A 2% wind and hail deductible on a $300,000 home results in a $6,000 deductible for the homeowner.
Prior claims history can also complicate coverage. Smith said fire claims within the past five years often push properties into the excess market, where premiums are higher and binding coverage can take weeks. Significant prior losses should prompt Realtors to expect additional insurance time and higher escrow costs for buyers.
Smith emphasized that flood and earthquake coverage are not included in standard homeowners policies and must be purchased separately. Checking FEMA flood maps early in the process, he said, can help manage buyer expectations and pricing.
He also addressed special property types that require additional planning, including homes built before 1990, rural and unique properties, manufactured homes, log cabins and flipped houses. While these properties can be harder to place and more expensive to insure, Smith said Star Mathews has access to markets that can accommodate them.
Gouge closed by reiterating the firm’s commitment to serving as a resource for Women’s Council members, regardless of whether Star Mathews ultimately writes the policy.
“Even if you’re not using us, we want to be a resource,” Gouge said. “If your client has a question or an issue, let us look at it. We’re happy to help any way we can.”
Contact Star Mathews at bdietz@starrmathews, mgouge@starrmathews or ssmith@starrmathews.