Best homeowners insurance in Tennessee for 2024

Compare the best homeowners insurance companies in Tennessee

Tennessee homeowners pay an average of $2,395 annually for home insurance with $300,000 dwelling coverage, or $200 a month. This is higher than the national average of $2,151. Your own rate is likely to vary based on the specifics of your property (your home's age and condition, for example), as well as the part of the state you live in.

By analyzing average annual rates gathered by Quadrant Information Services, Bankrate chose USAA, Auto-Owners, Allstate, State Farm and Travelers as the companies providing the best Tennessee homeowners insurance. Our editorial team also assigned a Bankrate Score, out of a possible five points, based on average rates and other factors, including each company’s score in J.D. Power's 2023 U.S. Home Insurance Study, its AM Best financial strength ratings, its coverage options and more. Our Bankrate Scores might help you make a more informed decision about which insurance company is right for you.

The top 5 home insurance companies in Tennessee

Additional Tennessee home insurance companies to consider

Erie

Foremost Insurance

Grange

How Bankrate chose the best home insurance companies in Tennessee

To find the best homeowners insurance companies, Bankrate analyzed average rate data from Quadrant Information Services for each Tennessee provider. We also looked at third-party scores from J.D. Power and financial strength ratings from AM Best. We used these factors to award each company a Bankrate Score with a maximum of five points.

Bankrate Scores are calculated based on criteria like affordability, third-party ratings, online/mobile tools and coverage options. If you are looking for the best Tennessee homeowners insurance companies, Bankrate Scores can be a valuable comparison tool to help you determine whether a company provides a well-rounded customer experience in multiple categories, rather than excelling in just one area.

Cheapest home insurance companies in Tennessee

The average home insurance cost in Tennessee is $2,395 annually for $300k of dwelling coverage. All of our chosen companies offer average rates that are below this. Your own rate will depend on circumstances unique to you, such as your age, credit rating and your home's location. Asking one or more of Bankrate's chosen companies for a quote may help you find the most affordable coverage for your home.

How to get cheap Tennessee home insurance

No one wants to pay more than they need to for Tennessee homeowners insurance, so it pays to shop around. Cost, however, is only one of the factors you should consider. A cheap policy, for example, is less desirable if poor customer service might mean delayed claims payments or difficulties in managing your policy. It's important to do your homework and determine the company that has the best options for your needs.

Consider the following steps when shopping for cheap homeowners insurance in Tennessee:

1. Assess your situation: How old is your house? Is your roof fairly new? Are you near a fire station? Take a realistic look at your home and property so you’re prepared to answer questions the insurer asks.
2. Do some research: Take a look at the websites of companies that interest you. Is it easy to find information? Do they list discounts and coverage options? Is there an easy-to-use mobile app? Consider how you like to do business — online or in-person — and ensure that the company is well-suited to meet your needs. One tip that may be helpful: see how easy it is to find the answers to your questions online to get a sense of how the company works with its customers.
3. Ask for quotes: Many insurers will give you an online quote just for answering a few questions on the website. Others require you to talk to an agent. It's a good idea to get several quotes so you can compare the prices, but be sure you're asking for the exact same coverage for each quote.
4. Make your choice: Experts recommend basing your decision on the quotes, as well as any other factors that are important to you. If you have questions, ask an agent before you sign up for your policy. A response to your application may come in a few hours, or it may be several days before you are approved. In some cases — for example, if you've had multiple claims in the past — it may take longer. Pay your first month's premium and you should be all set.

Best home insurance discounts in Tennessee

A homeowner's greatest ally when it comes to finding the lowest premium is the list of potential discounts that almost all insurers offer. Many of them are easily earned and could shave a significant amount off your monthly costs. Here are a few of the more common Tennessee discounts.

How to save on home insurance policy renewals in Tennessee

Policyholders looking to save money on insurance may want to consider the following strategies.

• Improve your credit: Your credit history is one of the factors insurers take into consideration when determining your rates. Why? Because good credit implies you are able to pay bills on time, in full. A low credit rating may mean you struggle to pay your bills and may have difficulty making premium payments. Your home insurance premium may go down if you can significantly improve your credit.
• Increase your deductible: In general, a higher deductible means a lower premium payment. Be careful, however, that you don't increase your deductible to an amount that you'd have difficulty paying in the event that you need to file a claim.
• Be careful about claims: Insurers tend to increase premiums for homeowners who file multiple claims. If you have a smaller loss that you can afford to fix on your own, it may benefit you in the long term to do so, rather than filing a claim against your policy.
• Keep your roof in good repair: An aging or damaged roof can lead to a costly claim, which is why your insurer is likely to ask how old your roof is when you apply for coverage. If your roof is on the older side, replacing or repairing it could equate to lower rates.

How much is home insurance in Tennessee?

Tennessee homeowners insurance averages $2,395 annually for $300K in dwelling coverage, which is $200 above the national average of $2,151. Compared to its neighbors, though, Tennessee homeowners may pay less. Kentucky's average is $2,603, while Mississippi homeowners pay an average of $4,289.

Why the higher rates? Tennessee is in a part of the country that experiences heavy storms, which can cause flooding and wind-related damage to homes. In some of the more rural parts of the state, wildfires are a concern, while tornadoes have been known to hit the region, as well. Some parts of the state are also prone to severe and/or unpredictable winter weather.

Your exact homeowners insurance rate will vary based on multiple factors, including the amount of coverage you need, as illustrated in the chart below.

Tennessee homeowners insurance rates by city

Even within a state, rates vary from place to place due to local factors like claim frequency, weather-related events, the prevalence of fire stations and more. Here are some of the cheapest and most expensive cities in the Volunteer State.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Tennessee?

There are several types of home insurance policies, but standard policies typically cover your dwelling and other structures on your property, as well as your personal belongings. Should you face losses from a covered peril, homeowners insurance will kick in to help repair or replace your property, minus your deductible (if any). Homeowners insurance may also help cover another party’s damage or injury for which you are liable.

Additional home insurance coverage types in Tennessee

In addition to the standard coverage included in most home insurance policies, Tennessee homeowners might also want to be aware of the possible need to explore additional coverage like:

• Sinkhole insurance: A sinkhole can literally swallow up all or part of your property, and Tennessee is one of the 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 Federal Emergency Management Agency (FEMA) Flood Map Service Center to see what the risk is near you. You can also purchase coverage through FEMA’s National Flood Insurance Plan (NFIP), although many private insurance companies also sell flood coverage.
• Wildfire insurance: Although Tennessee is not one of the top states for wildfires, they are becoming more common. In 2021, there were 550 wildfires reported in Tennessee, resulting in 4,937 acres burned.

Common Tennessee home insurance problems

Rapidly increasing rates are only one of the challenges homeowners may have to deal with when it comes to finding the best Tennessee homeowners insurance. The insurance industry, like many other sectors, has seen a great deal of turmoil in the past decade for a variety of reasons, and these may impact you as a homeowner. Consider the following:

• Supply chain issues: Supply chains throughout the U.S. proved unexpectedly fragile during the pandemic, making it difficult and more expensive to source raw materials like lumber. This made rebuilding or repairing damaged property far more expensive than it had been previously.
• Climate change challenges: Few would argue that severe weather is becoming more common in the U.S. Violent storms and other natural phenomena often lead to an increased number of claims. Insurers may account for the rising cost of claims by passing on premium increases to their policyholders.
• Insurance availability: Because of the previous reasons and more, some insurers are reluctant to write policies in some parts of the country that are more prone to home and property damage. This is most commonly seen in coastal states like Florida and California but may impact inland states, as well.
• Claim history: Another reason it may be hard to find coverage is if you have had to file multiple claims in the past, even if they are justified. Insurers are becoming more selective in what they are willing to cover. So if you have an older house that needs occasional repairs, you may find that your insurer will be less likely to want to renew your policy.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

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