Best cheap homeowners insurance in Knoxville

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Knoxville is located in Knox County in Eastern Tennessee, with homeownership rates hovering around 45% — far below the national average of 66%. And while the Gateway to the Great Smoky Mountains may not have high home ownership levels, the average premium of $1,355 annually for $250,000 in dwelling coverage is slightly less expensive than the national average, which is $1,477.

Finding the best cheap homeowners insurance in Knoxville is based on a large number of factors, not only the annual premiums. Bankrate has reviewed this information to determine the best based on rates, customer service ratings, financial strength and coverage options and discounts available for Knoxville residents.

Best home insurance companies in Knoxville

Choosing the best home insurance company in Knoxville takes examination of several factors. Not only are the rates of each carrier reviewed, but so are the scores from the J.D. Power 2020 Home Insurance Satisfaction Study as well as other customer service ratings.

Home insurance company Average annual premium for $250,000 dwelling coverage J.D. Power score
Erie $656 839 / 1,000
Allstate $723 829 / 1,000
USAA* $995 889 / 1,000
Auto-Owners $1,139 843 / 1,000

*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions

Erie

Erie is a regional insurance provider that operates in 11 states, including Tennessee. Erie has the least expensive premiums on our list and offers numerous advantages. In addition to competitive rates, Erie offers a number of discounts, ranging in potential savings from 16% to 25% for bundling, to discounts for having security alarms and receiving a quote before your policy renews. Erie consistently ranks high in customer satisfaction with JD Power.

Allstate

Another strong contender on our list is Allstate, which offers as many coverage options as it does discounts for homeowners policies. With Allstate you have access to the typical policy coverages — dwelling, liability, personal property and medical payments for guests. If you need to customize your policy further, you can add identity theft restoration, water backup cover and even yard and garden protection, among many others. Discounts include bundling, customer loyalty and claims-free, giving you several potential ways to save on your premiums.

USAA

USAA offers membership to current members of our military and their immediate family members, as well as veterans. If you qualify, you have access to a number of specialty homeowners policy options and discounts. If you rent out a room or your house for any reason, USAA offers provisions and additional coverage for this scenario so you have further protection. Discounts range from policy bundling to remaining claims-free, to further reduce your premiums on the already-competitive prices.

Auto-Owners

Auto-Owners is one of the highest-scoring carriers ranked with JD Power, proving this regional powerhouse is focused on customer satisfaction as well as thorough homeowners policies. Auto-Owners relies on a large agent network for obtaining quotes and managing your policy, but this strategy pays off with high customer service ratings. Auto-Owners also offers an impressive range of discounts, from policy bundling to paying your premiums in full before your renewal.

Other Knoxville home insurance coverages to consider

While homeowners insurance is not a required purchase in the state, obtaining a policy makes good financial sense so your rebuilding or repair costs are covered in case disaster strikes your home. Tennessee, and therefore Knoxville, is home to volatile and unpredictable weather throughout the year, which means your home is vulnerable to damage. A solid insurance policy helps you mitigate this and provides a course of action in case it does happen. Make sure your policy includes adequate coverage for scenarios such as:

  • Tornadoes: In 2020, Tennessee recorded 35 tornadoes across the state. Making sure your policy includes coverage for damage from tornadoes provides additional financial protection.
  • Sinkholes: The state of Tennessee ranks 7th on a list of states most likely to experience sinkholes and Knoxville is one of the cities where sinkholes are likely to occur. Make sure your policy specifically mentions sinkholes in the list of covered perils.
  • Flooding: Knoxville is prone to flooding in parts of the city, but you can check your location with the FEMA flood zone to determine if your area is impacted by floods. Working with a licensed real estate agent who is familiar with your area is the best way to determine if flood insurance is needed, since it is an addition to your policy.

Home insurance discounts in Knoxville

The average cost of homeowners insurance in Knoxville is $1,355, which is slightly below the national average of $1,477. Even though homeowners insurance may be priced less, you should still take advantage of as many discounts as possible so you do not overpay on your premiums. Residents of Knoxville may find themselves eligible for many discounts, including:

  • Policy bundling: One of the easiest potential ways to save on your premiums is to choose a homeowners policy with the same carrier you purchase your auto insurance (or another insurance product) through.
  • Loyalty: Each year you maintain coverage with the same insurance carrier may earn you additional savings on your premiums. Several carriers, such as Allstate, offer loyalty discounts.
  • New home discount: Most carriers offer additional potential savings when you purchase a newer home or brand-new construction.
  • Safety systems: When your home is equipped with an alarm system, you may be eligible for an additional discount. The same is true for having smoke detectors and fire alarms installed in your home.

Frequently asked questions

What is the best home insurance company?

The best home insurance company is subjective but there are several key points of consideration for finding the best one. Reviewing data such as the rates and customer service ratings, plus comparing multiple carriers side by side, will help you determine the best home insurance company.

How much does home insurance in Knoxville cost?

The average cost of homeowners insurance in Knoxville is $1,355 per year for $250,000 in dwelling coverage. You should keep in mind, however, your premiums are based on your personal data, including your age, gender, marital status, credit score and number of claims on previous policies, which means your cost will vary from others. Rates also vary based on the carrier.

What is the best way to purchase homeowners insurance?

The best method for purchasing your homeownership policy is to compare quotes from multiple carriers. Not only does this give you an idea of which one is offering the best rates, but it allows you to compare other qualities, such as digital assets and coverage options. Some carriers allow you to get a quote through a mobile app or online, whereas others require you to work exclusively with a licensed agent.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Written by
Sara Coleman
Insurance Contributor
Sara Coleman has three years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.