Best homeowners insurance in Tennessee of 2021

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The Volunteer State currently boasts a homeownership rate of just under 70%, which makes finding the best homeowners insurance in Tennessee critical. But choosing the best Tennessee home insurance is slightly more challenging due to the state’s above-average cost for home insurance rates. With an average annual premium of $1,688 for $250,000 in dwelling coverage, it’s important to understand what factors are driving the costs in Tennessee and how you can choose the best coverage for your policy.

Best home insurance companies in Tennessee

To find the best Tennessee homeowners insurance, we looked first for the providers who are writing the most policies in the state. These companies will be most familiar with state regulations and regional weather patterns. We took a careful look at those that are rated highly by consumer watchdog agencies like J.D. Power and the Better Business Bureau. We took each company’s online quote tool for a test drive, and assessed how easy it was to navigate the website.

The table below lists the five most highly-regarded Tennessee homeowners insurance companies.

Home Insurance Company Average Annual Premium for $250K Liability JD Power Score
Allstate $1,789 829/1,000
State Farm $1,666 829/1,000
USAA $1,452 889/1,000
Auto-Owners $1,486 843/1,000
Tennessee Farm Bureau $1,662 Not rated

Allstate

Allstate has comprehensive coverage options at a good price point, along with extras like Claim Rateguard that keeps your cost low even if you file a claim.

State Farm

The highest-ranking company we looked at, State Farm is known for great customer service in the event that you have to file a claim, and superior financial stability.

USAA

Another company with high rankings, USAA has one catch: its policies are only available to current and retired military personnel and their families.

Auto-Owners

Auto-Owners is a large regional provider of homeowners insurance. With high customer satisfaction marks and competitive rates, Auto-Owners also boasts a Superior rating for financial strength of A++ with AM Best.

Tennessee Farm Bureau

Tennessee Farm is another regional supplier on our list, and that can be a plus: the company is super-familiar with rules governing Tennessee policies and the insurance challenges you may have in the state.

Average cost of homeowners insurance in Tennessee

The average home insurance cost in Tennessee is $1,670 annually for $250,000 in dwelling coverage. This is well-above the national average of $1,477. When compared to a few of its Southern neighbors, Tennessee averages above Georgia and North Carolina, with annual rates of $1,506 and $1,515 respectively. However, Tennessee does average less than Kentucky and Mississippi, which come in around $1,888 and $1,713 each year.

Home insurance considerations in Tennessee

The volatile weather conditions in Tennessee are one of the many factors impacting the rates for homeowners insurance and should be taken into consideration as you are building your policy.

Tennessee common causes of loss

Tennessee ranks as the 16th most disaster-prone state in the Union. It has severe storms common in both summer and winter, flooding, wildfires that can cause extensive damage to homes and tornadoes.

Recommended coverages in Tennessee

In addition to the standard clauses on most home insurance policies, Tennessee homeowners should be aware of the possible need to explore additional coverage for:

  • Sinkholes: According to the U.S. Geological Survey, Tennessee is one of the seven most likely states to experience damage from sinkholes.
  • Floods: Flood insurance is another common insurance expense in Tennessee—and it doesn’t come standard on most policies. One great resource to check out is the FEMA Flood Map Service Center.
  • Wildfires: Although Tennessee is not one of the top states for wildfires, they are becoming more common in the state, with over 300 significant fires reported in 2018, resulting in the loss of 3,763 acres burned.

Frequently asked questions

What is the cheapest homeowners insurance in Tennessee?

There are many factors that go into finding the cheapest Tennessee homeowners insurance, including your location, the size and age of your home, your deductible, and the value of your property. Although you can get online quotes from many insurance companies, you’ll want to follow up on that by talking to agents, who can sometimes help you bring down the price of your policy considerably.

How do I get home insurance in Tennessee?

First, check out our articles on best homeowners insurance companies of 2021 and hazard insurance vs. homeowners insurance and coverage. Take a look at the websites of our top five Tennessee homeowners insurance companies, and get some online quotes. Then talk to local agents and find one you’re comfortable with and trust—they’ll get you the best value for your dollar.

Do I need flood insurance?

That depends on whether or not your house is in a flood zone. Floods can be devastating, with damage—such as mold—that may continue for years after the flood. Although it is an extra expense, flood insurance from the National Flood Insurance Program may save you thousands of dollars in the event of a water-based disaster.

How much homeowners insurance do I need?

Think about how much it would cost to rebuild your home if it was destroyed (this may be different from the value of your current home, especially if it is an older house). Then make a rough estimate of the value of your belongings. That number is where you start. Then add in liability, which covers injuries to others while in your house, and estimate additional costs, such as hotel fees, if you can’t live in your home while you’re rebuilding.

How can I save money on Tennessee homeowners insurance?

Most insurance companies offer a range of discounts that can save you money. One way is to bundle your homeowner and car insurance together with the same company, which will give you a discount on both policies. Another way is to invest in security features for your home, such as burglar alarms, that can get you a significant discount.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 may be different.

Rates are determined based on 2020 Quadrant Information Services data.