Knoxville City Council recently overturned a proposed 55+ residential plan on a 5-4 vote in a first-of-its-kind appeal. Whatever happens with that site, it has a lot of Tennessee buyers asking about age-restricted and active-adult communities. If you are downsizing or retiring into one, your insurance works differently than in a typical subdivision. Here is what to know.
Who Owns What? Start With the Governing Documents
Many 55+ communities are run by an HOA or condo association. The master policy often covers the exterior structure, roofs, and common areas. Some cover the building "walls-in" and some only "bare walls." Ask for the declarations and the master policy certificate before you make an offer. Your own policy must fill whatever gap the association leaves.
HO-3 vs HO-6 vs HO-5
- Detached villa or cottage on your own lot: usually a standard HO-3, sometimes with a small HOA policy for common areas only.
- Attached or condo-style unit: an HO-6 covering interior finishes, cabinets, flooring, belongings, and loss assessment.
- High-value finishes: an HO-5 or higher limits can matter if you are bringing valuable furniture, art, or jewelry.
Loss Assessment Coverage Matters More Here
When a community has a large claim, such as a hail-damaged roof, or the master policy has a high deductible, the association can bill owners directly. Many residents live on fixed incomes, so a surprise assessment hurts. Loss assessment coverage on your policy is inexpensive and can cover your share. Ask for at least $25,000 in a community with shared roofs.
Medical Payments, Liability and Visitors
Active-adult residents host grandchildren, caregivers, and contractors. Liability limits of $300,000 to $500,000 plus an umbrella policy are common recommendations. Medical payments to others coverage helps with small injuries without a lawsuit.
Water Damage and Time Away
Retirees often travel or split time between homes. Most policies have vacancy or extended-absence conditions, and frozen pipe or water losses while you are gone can be denied if the policy rules were not followed. Tell your agent how long the home will sit empty, and consider water leak sensors with automatic shutoff valves. Many carriers give a discount for them.
Discounts to Ask About
Age and retirement discounts, claims-free credits, bundled auto and home, newer roof credits, and monitored alarms can all lower your premium. Because carriers rate these differently, comparing quotes is worth it.
Moving Costs and Timing
If you are selling your current home to move into the new community, line up your new policy to start at closing and keep coverage on the old house until it transfers. See our guide on carrying two homes for more detail.
Questions to Ask Before You Buy
- Does the master policy cover walls-in or bare walls?
- What is the association's deductible, and who pays it?
- Is the roof owner-maintained or association-maintained, and how old is it?
- Are there flood zones or hillside drainage concerns on the site?
Our team can review your HOA documents and build a policy that fits the gaps.
Need help? Call All Seasons Insurance Group at (865) 263-1400 or visit asigtn.com. For real estate help, visit Kings of Real Estate. For mortgage questions, AnnieMac Home Mortgage is at (865) 518-6408.
