Many Tennessee homeowners hesitate to call their insurance company after a storm, a leak, or a crack in the driveway because they worry the call itself will count against them. Tennessee law draws a line between a question and a claim. Under Tenn. Code § 56-7-113, no insurance company shall increase a premium or cancel a homeowner's insurance policy solely on the basis of an inquiry or inquiries by an insured about the policy or a loss under the policy.
| Term | What Tenn. Code § 56-7-113 says |
|---|---|
| Inquiry | Any communication to the insurer by the insured, or by an insurance producer on the insured's behalf, about the general terms and conditions of a homeowner's policy |
| Examples of an inquiry | Asking whether the policy provides coverage for a type of event, or asking about the process for filing a claim |
| Claim | An oral, written, or electronic submission for payment that the insurer accepts under its reasonable submission standards; not an inquiry |
| The protection | No premium increase or cancellation solely because of an inquiry |
| The exception | An investigation with a written finding of a change in a known condition or use of the premises, or a fraudulent act |
| Enforcement | A violation is an unfair trade practice under the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009 |
Source: Tenn. Code § 56-7-113 (Justia).
What counts as an inquiry
The statute defines an inquiry as any communication to an insurance company by an insured, or by an insurance producer on behalf of an insured, regarding the general terms and conditions of a homeowner's insurance policy. It specifically includes asking whether the policy provides coverage for a type of event, and asking about the process for filing a claim. That covers the questions most people actually have: Is wind-driven rain covered? What is my deductible on a roof claim? How do I start a claim if I decide to file?
The definition also covers questions your agent asks for you. If an insurance producer contacts the company on your behalf about general policy terms, that is still an inquiry under the law.
What counts as a claim
A claim under this section means an oral, written, or electronic submission for payment filed by an insured, on behalf of the insured, or by a third party, which the insurance company accepts for payment under its reasonable submission standards. The statute says plainly that a claim does not mean an inquiry by an insured or by an insurance producer on behalf of an insured.
The difference matters because claims history can follow a home. Insurers commonly look at loss reports when they price or underwrite a policy; see TDCI’s CLUE explainer says Tennesseans can pull seven years of home and auto claims history for free.
The exception you should know about
The protection is not unlimited. If a communication by an insured necessitates an investigation by the insurance company, and that investigation results in a written finding that there has been a change in a known condition or use of the premises, or a fraudulent act by the consumer, then the insurer may consider the communication to be either a claim or an inquiry.
In plain terms: asking "would a burst pipe be covered?" is a question. Telling the company you have turned the house into a short-term rental, or that a roof has been leaking for months, may describe a change in the condition or use of the property, and the insurer may treat that differently after investigating.
How this fits with cancellation and nonrenewal rules
For this section, "cancel" means to terminate a homeowner's insurance policy prior to the expiration of the policy period. The protection is aimed at a premium increase or a cancellation based solely on an inquiry. Nonrenewal at the end of a term follows its own notice rules: Tennessee law gives you at least 30 days' notice before your home insurer can decline to renew your policy. For a refresher on the different ways a policy can end, read TDCI’s glossary explains how cancellation, non-renewal, lapse, and rescission end a policy in different ways.
What to do before you call
- Pull out your declarations page and policy forms so you can ask about a specific coverage, limit, or deductible.
- Frame the call as a question about terms and the claim process unless you have decided to file.
- Write down the date, the person you spoke with, and what you asked.
- If you are unsure whether a loss is worth filing, ask your independent agent to review the policy with you first. First-party and third-party claims work differently; see TDCI’s glossary explains the difference between a first-party claim and a third-party claim.
- If you believe a premium increase or cancellation was based only on a question, you can contact TDCI: How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
The section was enacted by Acts 2014, chapter 975. A violation is treated as an unfair trade practice under the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009, compiled in chapter 8, part 1 of Title 56.
This article is informational only and is not legal advice. It does not promise coverage, eligibility, or a particular result. Your policy forms and Tennessee law control.
Related reading from All Seasons
- TDCI’s CLUE explainer says Tennesseans can pull seven years of home and auto claims history for free.
- Tennessee law gives you at least 30 days' notice before your home insurer can decline to renew your policy.
- TDCI’s glossary explains how cancellation, non-renewal, lapse, and rescission end a policy in different ways.
- TDCI’s glossary explains the difference between a first-party claim and a third-party claim.
- How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
- TDCI’s Homeowners Insurance 101 page links inventory, CLUE, and ACV tools.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Can my Tennessee home insurer raise my rate because I asked a question?
Tenn. Code 56-7-113 says no insurance company shall increase a premium or cancel a homeowner's policy solely on the basis of an inquiry by an insured about the policy or a loss under it.
What counts as an inquiry under Tennessee law?
Any communication by an insured, or by an insurance producer on the insured's behalf, about the general terms and conditions of a homeowner's policy, including whether a type of event is covered or how to file a claim.
What counts as a claim instead?
A submission for payment filed by or for the insured, or by a third party, that the insurer accepts under its reasonable submission standards. The statute says an inquiry is not a claim.
Does it matter if my agent calls the company for me?
The definition of inquiry includes a communication by an insurance producer on behalf of an insured about general policy terms.
Is there any exception?
Yes. If a communication leads to an investigation with a written finding of a change in a known condition or use of the premises, or a fraudulent act, the insurer may treat it as a claim or an inquiry.
What happens if an insurer violates this law?
A violation is considered an unfair trade practice under the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009. You can file a complaint with TDCI.
Does this law stop a nonrenewal at the end of my term?
The section addresses premium increases and cancellations, and defines cancel as ending a policy before the policy period expires. Nonrenewal has separate Tennessee notice rules.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
