Best cheap homeowners insurance in Memphis

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Home ownership in Memphis is not as high as other parts of the country — the home ownership rate is 46.6%. For those who own their home, finding cheap home insurance in Memphis is likely important. The average cost of homeowners insurance Memphis is $2,023 per year for a $250,000 dwelling, significantly higher than the national average of $1,312. Some city residents complain that the cost of home insurance is “more expensive than a mortgage.” Home break-ins, flooding and tornadoes are some of the reasons home insurance costs more in Memphis, Tennessee.

The average cost of home insurance may be high, but Bankrate collected quotes from the best home insurance companies in the city to evaluate what carriers are offering cheap policies. Several carriers had lower-than-average rates, starting at just $938 per year.

Best cheap home insurance companies Memphis

While finding the cheapest rate is important, working with a company that pays your claims in a timely manner and is there when you have questions or concerns is just as important. We looked at annual premium data, carrier history and customer ratings to narrow the list down to five best cheap home insurance companies in Memphis.

Home insurance company Average annual premium for $250k dwelling coverage J.D. Power score
Allstate $949 829 / 1,000
Auto-Owners $1,377 843 / 1,000
Erie $938 839 / 1,000
State Farm $1,846 829 / 1,000
*USAA $1,419 *889 / 1,000

Allstate

Allstate is the second-cheapest home insurance provider in Memphis on our list with rates averaging $949 per year. Besides coverage that beats the citywide average in price, you could add unique extras that expand on a basic home policy. Sports equipment insurance covers more expensive gear such as golf clubs or hunting equipment. And the yard and garden add-on provide insurance for riding lawn mowers and pricey landscaping, such as swimming pools and mature trees, in case of loss or damage after a covered peril.

Learn more: Allstate insurance review

Auto-Owners

Auto-Owners insurance provides more than just insurance for car owners. The company’s home insurance is highly rated by its customers. Auto-Owners earned the second-highest customer rating of the five cheapest carriers on this list. If you can afford to buy more than basic coverage, you may like equipment breakdown insurance. It is similar to a home warranty package and will cover repairs or replacements of items such as home appliances, air conditioning systems and electrical, which can be some of the most expensive things to fix or replace in case of a covered loss.

Learn more: Auto-Owners insurance review

Erie

Erie’s home insurance is well below the city average of $2,023. With its low annual rate, it comes in at the top spot on our list of the cheapest and best home insurance in Memphis. Erie policyholders in the area pay an average of $938 per year for a standard home insurance policy, which amounts to less than $80 per month. Erie also ranks well in the J.D. Power home insurance study. Scores are awarded based on customer responses to how the carrier responds to claims, what the communication is like and the types of coverage they offer.

Besides having affordable home insurance and solid customer service, Erie has special coverages including identity theft protection and service line protection that covers the underground lines that run your internet, cable, water and electric from the municipal hookups to your house.

Learn more: Erie insurance review

State Farm

State Farm rounds out the list of best insurance companies in Memphis. Its rates may not be the lowest, but you may be able to save further when you apply discounts from State Farm’s list of available options. Some of the ones that could have the best impact on your rates are car and home insurance bundling for a discount on both policies. Additionally, you could get a discount for having an impact-resistant or newer roof, as well as having a home security system or smoke detectors installed in your home.

Learn more: State Farm insurance review

USAA

USAA has top-notch customer service and affordable premiums. It is why the carrier often rates highly in the J.D. Power annual Home Insurance Study. A home insurance policy from USAA includes identity theft coverage for free, which most carriers charge extra for. There are also other options like replacement cost coverage, which helps you replace items with new versions instead of waiting to get paid the cost of the item with depreciation deducted from the value. In addition to the standard coverage, USAA also sells flood insurance, which may be necessary if you live in a flood-prone area.

Learn more: USAA insurance review

Home insurance coverage options in Memphis

The state of Tennessee does not require Memphis homeowners to have home insurance, but not having coverage could leave you financially exposed. Think about the cost of replacing all your valuables if someone breaks into your home, for instance. Or estimate how much it would cost to rebuild your house after a tornado. Home insurance premiums are far cheaper than the tens of thousands of dollars or more it could cost you out of pocket to replace or rebuild everything. Besides a standard home policy, the following coverages could be a good idea:

  • Flood insurance: Floods are not standardly covered by an HO-3 policy. If you would like flood damage protection, you will need to get coverage through your carrier or the National Flood Insurance Program (NFIP).
  • Scheduled personal property: If you have thousands of dollars in electronics such as TVs, computers and gaming equipment or have some fine jewelry and diamonds, your home insurance may limit how much it will reimburse. Adding scheduled personal property for more expensive items ensures they are covered for their full value.
  • Replacement cost: A home policy usually provides an option for coverage, one of which pays actual cash value (ACV) for your items. ACV is often lower than the cost of a new version. Upgrading to replacement cost value (RCV) helps ensure you can replace your belongings with new versions.

Home insurance discounts in Memphis

Home insurance companies offer Memphis policyholders additional discounts. Take advantage of the following by asking for some common ones like:

  • Bundling: You could receive a discount when you buy car and home insurance with the same company.
  • Protective devices: Add deadbolts, smoke and carbon monoxide detectors or an alarm to your house and your premiums could be lowered.
  • No claims: If you have not had any claims on your home insurance in the last few years, let your carrier know for a discount.

Frequently asked questions

What is the best home insurance company in Memphis?

Every Memphis homeowner is likely to have different needs based on the size of their home and unique home concerns. By considering your specific criteria for coverage, you could begin narrowing down the list for the best home insurers near you.

How much does home insurance in Memphis cost?

The average cost of homeowners insurance in Memphis is $2,023 per year for a $250,000 dwelling, much higher than the national average of $1,312. However, depending on your elected coverages and applied discounts, the rate you pay could fall outside of the city average.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homeriers 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 may be different.

Rates are determined based on 2020 Quadrant Information Services data.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Edited by
Insurance Editor