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. We then took a careful look at those that are rated highly by influential market research 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 coverage||J.D. Power score|
|Tennessee Farm Bureau||$1,532||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
Allstate has robust coverage options at a good price point, along with extras like Claim Rateguard that helps to keep 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 an A++ (Superior) rating for financial strength with AM Best. Tennessee homeowners will pay $1,297 per year on average for $250K dwelling 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
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 an 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. Although USAA does not qualify for official ranking with J.D. power, the carrier does have some of the highest-scored customer service 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 less than Kentucky and Mississippi, which each come in around $1,839 and $1,773 each year, respectively. The price for Tennessee homeowners insurance is based on several factors. The likelihood of losses in the state and the cost for materials and labor to repair or rebuild homes could be why Tennessee homes are more expensive to insure than homes in the nation as a whole.
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 is no stranger to natural disasters. The state is often hit by severe storms in both summer and winter, and includes flooding, wildfires 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. Although fire is a standard peril on home insurance policies, you may want to talk with your agent to confirm that wildfire damage would be covered.
- Wind: Over 34% of homeowners who filed a claim in 2019 did so due to windstorms. Tennessee specifically is vulnerable to wind damage caused by destructive tornadoes. At least 11 touched down on May 4, 2021.
- Severe weather: 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.
- Flooding: Parts of Tennessee have endured devastating flooding recently. Flood damage can add up quickly, but Tennessee homeowners should know that it is not covered by standard homeowners insurance.
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, 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 some 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. Nearly 400 significant fires were reported in 2020, resulting in the loss of 4,207 acres burned.
Frequently asked questions
How much homeowners insurance do you need?
The amount of home insurance you need will depend on the size and features of your home, the risks you want to insure against and your personal level of risk tolerance. More expensive homes generally need more dwelling coverage and you may need more coverage to insure against risks like flooding and sinkholes. You may be comfortable with lower limits if you have significant savings that you could use to repair your home, or you might want to make sure you have enough coverage to rebuild everything if it were destroyed.
How do you get home insurance in Tennessee?
To get home insurance, you first need to get quotes. You can often do this online or by phone, or you might visit a local agency. Understanding your needs and wants might help you narrow down which home insurance companies to look at. Getting quotes from several companies allows you to compare price, coverage options, discounts and third-party scores. Once you have chosen a company, a representative can walk you through the next steps.
Do you need flood insurance?
You might. If you live in a flood zone and you have a mortgage, you’ll likely be required to carry a flood insurance policy as well as a homeowners insurance policy. But even if you own your home outright, flood insurance might be a good purchase. Floodwaters can damage your home quickly. If you do not have a flood insurance policy, you will bear the financial weight of all the repairs.
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.