This is a great question!!
It is very hard to propose general rules because so much interpretation depends on context.
One challenge is if we believe “Divine inspiration” = “literal, factual interpretation.”
However, I don’t believe the Bible itself teaches this principle.
For instance, how can I most truthfully tell my wife that I cherish her?
“Your smile makes my heart sing”
“When you smile, I see eight of your upper teeth, and it looks like you regularly floss and brush them.”
The literal approach fails in a way that the poetic one does not.
And the Bible is vastly more concerned with how we relate to God and one another than with “bare facts.”
Another challenge is that, because we love God’s word, we need to understand the culture within which it was written.
Take Genesis 2:24. It reads:
This is why a man leaves his father and mother and bonds with his wife, and they become one flesh.
I am not a doctor, but it appears that when a husband and a wife get married, they do not become one flesh. Imagine how distorted and awful it would be if marriage created a permanent physical union between a man and a woman. Since it doesn’t happen, it is funny to think about!
However, no one can hold this up to say, “Aha! The Bible is false!” Instead, we all instinctively understand that “one flesh”, though it talks about flesh, speaks to a spiritual union that encompasses within it occasional physical union.
I recommend that we consider each verse on a case-by-case basis to more carefully investigate the unique nature of the passage’s language, topic, context, and purpose. One reason? Part of the artistry of literature is how an established convention can be subverted, contradicted, or exaggerated to make a point. So especially if we create a “general rule” this paradigm might be utilized in another place to make a point more emphatically, precisely because the normal way of doing something is broken or adjusted.
Are there particular passages where you are weighing whether to interpret certain words as hyperbole or literally?