The Volunteer State currently boasts a homeownership rate of 70%, which might make finding the best homeowners insurance in Tennessee a critical task for many homeowners. But choosing the best Tennessee home insurance may be slightly more challenging due to the state’s above-average cost for home insurance rates. The average annual premium is $1,625 per year, or $135 per month.It might help 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 homeowners insurance companies in Tennessee, we first looked for the providers who are writing the most policies in the state. These companies are likely to be most familiar with state regulations and regional weather patterns due to their high presence. We then took a careful look at those that are rated highly by consumer watchdog agencies like J.D. Power. Using 2021 average premiums from Quadrant Information Services from each company, we included each provider’s rating and average cost of coverage below.
|Home insurance company||Average annual premium for $250k dwelling||J.D. Power score|
|Allstate||$1,038||829 / 1,000|
|Auto-Owners||$1,297||843 / 1,000|
|State Farm||$2,003||829 / 1,000|
|Tennessee Farm Bureau||$1,532||Not rated|
|USAA||$1,175||*889 / 1,000|
*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.
Allstate has robust coverage options at a good price point, along with extras like Claim Rateguard that keeps your cost low even if you file a claim. Tennessee homeowners, especially first-time homeowners, may want to meet with an agent to get their coverage set up. Fortunately, Allstate’s website provides plenty of helpful tutorials and guides on coverage to read up on first. And there are plenty of local Allstate agents available to help.
Learn more: Allstate Insurance review
Auto-Owners is a large regional provider of homeowners insurance. With high customer satisfaction marks and competitive rates, Auto-Owners also boasts a “superior” A++ rating for financial strength with AM Best. Tennessee homeowners will pay $1,297 per year on average for coverage. However, you could earn a lower premium by taking advantage of discounts if you have protective devices or water shutoff systems installed.
Learn more: Auto-Owners Insurance review
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 has superior financial stability, according to AM Best. State Farm has a neighborhood agent available in nearly every town and city in Tennessee. And if a claim or question arises after hours, the mobile app and website provide plenty of ways to manage your policy, look up your insurance documents or file a claim.
Learn more: State Farm Insurance review
Tennessee Farm Bureau
Tennessee Farm Bureau is another Tennessee-based provider on our list, which could be a plus: the company is very familiar with rules governing Tennessee policies and the insurance challenges you may have in the state. You will likely find a Farm Bureau office near you. Tennessee Farm Bureau does not rank in the J.D. Power home insurance study, but the carrier is known for award-winning auto insurance.
Learn more: Farm Bureau Insurance review
USAA is a high-scoring insurer. However there is one catch: its policies are only available to current and retired military personnel and their families. If you are stationed at the Mid-South Naval base or Arnold Air Force Base, or you are closely related to someone who is, you could qualify for free membership. Once you qualify, you could have access to one of the lowest rates for home insurance as well as enjoy the highest-rated customer service of the best homeowners insurance companies in Tennessee.
Learn more: USAA Insurance review
How much is homeowners insurance in Tennessee?
The average home insurance cost in Tennessee is $1,625 annually for $250,000 in dwelling coverage. This is well above the national average of $1,312. When compared to a few of its Southern neighbors, Tennessee averages close to Georgia and North Carolina, with average annual rates of $1,376 and $1,295, respectively. However, Tennessee does average less than Kentucky and Mississippi, which each come in around $1,839 and $1,773 each year, respectively.
Home insurance in Tennessee
The volatile weather conditions in Tennessee are one of the many factors impacting the rates for homeowners insurance and might be useful to take into consideration as you are building your policy.
Common causes of loss in Tennessee
Tennessee ranks as the 20th most disaster-prone state in the United States. It has severe storms common in both summer and winter, flooding, wildfires that can cause extensive damage to homes and tornadoes. Some of the most common causes are:
- Wildfires: A state analysis found that 37% of Tennessee’s population live in an area at risk for wildfire. Climate change is believed to be one of the biggest contributing factors. Fortunately, a standard HO-3 includes wildfire as a covered peril.
- Wind: Over 34% of homeowners who filed a claim did so due to windstorms. Tennessee specifically is vulnerable to wind damage caused by destructive tornadoes. At least 11 touched down in a single day earlier in the year.
- Severe weather: Another side effect of climate change is more severe and damaging storms. Besides tornadoes, thunderstorms are common and could cause damage from lightning strikes and heavy rains. Fortunately, a standard HO-3 typically covers lightning and hail damage from storms.
Home insurance coverage options in Tennessee
In addition to the standard clauses on most home insurance policies, Tennessee homeowners might also want to be aware of the possible need to explore additional coverage for:
- Sinkhole insurance: A sinkhole can literally swallow up all or part of your property. According to the U.S. Geological Survey, Tennessee is one of the seven most likely states to experience damage from sinkholes. Sinkholes are not covered in a standard policy, but a separate sinkhole insurance policy could protect your property if your area is at risk.
- Flood insurance: Flood insurance is another common insurance expense in Tennessee, although it does not come standard on policies. One great resource to check out is the FEMA Flood Map Service Center to see what the risk is near you. You can also purchase coverage through FEMA.
- Wildfire insurance: Although Tennessee is not one of the top states for wildfires, they are becoming more common in the state. Nearly 400 significant fires were reported in 2020, resulting in the loss of 4,207 acres burned. Additional coverage may be available for wildfires from certain insurers.
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 may want to follow up by talking to an agent to confirm your final rate.
How do you get home insurance in Tennessee?
It might help to research several home insurance companies before making your final buying decision. Most top Tennessee homeowners insurance companies have websites where more information regarding their policies can be found. You can also get some online quotes. Consider talking to local agents to find one you are comfortable with and trust — they could assist you in getting you the best value for your dollar.
Do you need flood insurance?
Whether or not you are required to purchase depends on whether or not your house is in a flood zone. Floods can be devastating, causing 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 flood-based disaster.
How much homeowners insurance do you 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). From there, you could make a rough estimate of the value of your belongings. These numbers could provide a starting point before adding liability, which covers injuries to others while in your house.
How can you save money on Tennessee homeowners insurance?
Most insurance companies offer a range of discounts that might save you money. One way to save 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 often get you a considerable discount.
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.