The Best Tennessee Home Insurance Companies of 2020

Fact-checked with HomeInsurance.com

5 min read

If you own a home in Tennessee, you’re in the majority: 65.4% of the Volunteer State’s residents are homeowners, slightly more than the national average of almost 64%. One of the biggest challenges you’ll find as a homeowner is getting the best home insurance coverage for your dollar. You need a robust policy that protects your assets and satisfies your mortgage lender, but you don’t want to spend a fortune on it. 

There are many factors that play into your insurance rate: the age of your home, its location and even if you have a certain dog breed. Because Tennessee is prone to tornadoes and even, in the western part of the state, earthquakes, you’ll want to review your policy carefully with your agent to be sure you’re covered if the worst happens. 

Here are a few things to consider when you’re looking for Tennessee homeowners insurance:

  • Where in the state is your home located?
  • What is the value of your property?
  • Do you need supplemental insurance, for floods, hail or other natural disasters?
  • Can you save money by opting for a higher deductible (the amount you pay before insurance kicks in)?

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. 

  • 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.
  • Liberty Mutual: A detailed online quote tool and solid, user-friendly mobile app make Liberty Mutual worth looking at. 
  • 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. 
  • Tennessee Farm Bureau: Tennessee Farm is the only 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.
  • USAA: Another company with high rankings, USAA has one catch: its policies are only available to current and retired military personnel and their families. 
J.D. Power Ranking AM Best Rating Better Business Bureau Rating Other insurance available
Allstate 3 / 5 stars A+ A+ Car, renters, condo, motorcycle, business, life, roadside, identity
State Farm 4 / 5 stars A++ A+ Car, motorcycle, boat, ATV, motorhomes, condo, renters, farm, life, health, disability
USAA 5 / 5 stars A++ B- Car, motorcycle, motorhome, boat, classic car, renters, farm, personal property, life, collectibles, umbrella, life, health, dental, vision, long-term care and more
Liberty Mutual 2 / 5 stars A A Car, motorcycle, condo, renters, life
Tennessee Farm Bureau Not rated A+ A+ Renters, farm, commercial property, life

Average homeowners insurance cost in Tennessee

According to the Insurance Information Institute (III), the average Tennessean pays a premium of $1,185 annually for home insurance, ranking it 21st among all the states. The national average is slightly higher, at $1,192. Your actual costs, of course, will likely be different. 

Sample average premiums:

Oregon $659
Ohio $850
Tennessee $1,185
Mississippi $1,525
Florida $1,918

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. Nationally, 6% of homeowners file a claim each year, with wind and hail accounting for the largest number—almost 40% of them.

You can find out the most common claims in your area by plugging your zip code into Allstate’s Common and Costly Claims tool. If it’s wind, you’re in luck (sort of). Although wind damage is the most common insurance claim in many areas, it’s also one of the cheapest, averaging less than $3,500 per claim, whereas other perils average much higher claims—fire clocks in at $51K per claim, for example.

Home insurance coverage options in Tennessee

Generally, Tennessee homeowners insurance policies covers four things:

  • It will help you rebuild or repair your home if it is damaged or destroyed (this is also called hazard insurance).
  • It covers personal belongings, from jewelry to furniture, even if these items are not physically at your house.
  • It provides liability coverage in the event that someone is hurt or their property is damaged while at your home. This may cover legal fees along with any settlement. 
  • It will pay for additional living expenses if you have to live away from your home when it is being repaired or rebuilt. 

The most common type of home insurance is called an HO-3 policy, and it covers a broad range of perils, including ice, snow or sleet damage, lightening, theft, vandalism, fire and damage from vehicles or aircraft. But it does more than that, covering you for perils that might not be named in the policy but aren’t specifically excluded, either. 

Common causes of home insurance losses 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. A knowledgeable agent can walk you through potential endorsements you can add to your policy if needed.

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. You can type in an address and find out whether you should be worried about flooding. With that information in hand, you and your agent can discuss whether to consider a flood policy from the National Flood Insurance Program.

Tennessee is not one of the top states for wildfires, but they are becoming more common in the state, with over 300 significant fires reported in 2018, resulting in the lost of 3,763 acres burned. Again, your location matters: if you are in an area that is heavily forested, you may want to consider additional coverage. 

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 2020 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.