- The average home insurance premium in Tennessee is $1,644 per year for a policy with $250,000 in dwelling coverage.
- Allstate offers some of the cheapest average rates on home insurance in Tennessee, with an average annual premium of $990 for $250,000 in dwelling coverage.
- Other affordable providers in Tennessee include USAA, Auto-owners, and Travelers, according to our average rate analysis.
How Bankrate chose the best home insurance companies in Tennessee
To find the best Tennessee homeowners insurance companies, Bankrate analyzed average rate data from Quadrant Information Services for each provider. We also looked at third-party scores from J.D. Power and financial strength ratings from AM Best to determine which providers were the best in Tennessee.
We used these factors to award each company a Bankrate Score with a maximum of 5 points. Bankrate Scores are calculated using criteria like affordability, third-party ratings, online and 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, with good scores in multiple categories, rather than excelling in just one area.
Best home insurance companies in Tennessee
Based on Bankrate’s analysis, the best homeowners insurance companies in Tennessee are USAA, State Farm and Auto-Owners. These three providers were rated above average for overall customer satisfaction in J.D. Power’s 2021 Home Insurance Study and offer below-average rates on homeowners insurance.
|Home insurance company||Bankrate Score||Average annual premium for $250k in dwelling coverage||J.D. Power score||AM Best rating|
*Not officially ranked by J.D. Power due to eligibility restrictions
Best for: Military personnel and veterans
USAA is a high-scoring insurer. It has the highest Bankrate Score on our list and some of the cheapest average rates in Tennessee. 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 membership. Once you qualify, you could have access to some of the lowest rates for home insurance in Tennessee. Although USAA does not qualify for official ranking with J.D. Power, it does have the highest ranking for customer satisfaction in the 2021 Home Insurance Study.
Learn more: USAA Insurance review
Best for: Customer service
Out of the Tennessee home insurance providers we reviewed, State Farm has some of the most expensive average rates, but there are lots of benefits to justify the higher average rates. State Farm is known for its customer service and superior financial stability, with an A++ rating from AM Best. State Farm offers a handful of home insurance discounts, with savings for bundling a home and auto insurance policy, installing a home security system or fire alarm system, and having an impact-resistant roof. However, State Farm has limited add-on coverages options, so it’s not the best provider if you want to customize your policy.
Learn more: State Farm Insurance review
Best for: Optional coverages
Auto-Owners is a large regional provider of homeowners insurance. The company stands out for its impressive list of optional coverages, including guaranteed replacement cost coverage, ordinance/law coverage, home cyber protection coverage, identity theft coverage and several others. With Auto-Owners, Tennessee homeowners will pay $1,252 per year on average for $250K dwelling coverage, which is cheaper than the statewide average rate. The biggest disadvantage with Auto-Owners is that you must work with an agent to get a quote and purchase a policy, which is an additional step.
Learn more: Auto-Owners Insurance review
Best for: Affordable rates
Allstate stands out for its affordable home insurance rates in Tennessee. It’s the cheapest home insurance company we reviewed, with an average annual premium of $990 per year. In addition, Allstate has robust coverage options, like yard and garden, electronic data recovery and sports equipment coverage, along with extras like Claim Rateguard that help to keep your cost low even if you file a claim. Although Allstate is a reputable provider overall, it earned the second-lowest Bankrate Score out of the Tennessee home insurance companies on our list.
Learn more: Allstate Insurance review
Best for: Discounts
If you are looking for a home insurance company in Tennessee that offers excellent discounts, Travelers may be worth considering. Travelers offers savings for having a LEED-certified home, equipping your house with security and fire protection devices, insuring a newly purchased home, bundling your policies and more. In addition, Travelers offers a variety of endorsements for customized coverage. However, Travelers is rated lower than many other providers by J.D. Power for overall customer satisfaction, and it has the lowest Bankrate Score on our list of the top carriers.
Learn more: Travelers Insurance review
How much is homeowners insurance in Tennessee?
The average home insurance cost in Tennessee is $1,644 annually for $250,000 in dwelling coverage, based on 2022 rate data. This is well above the national average of $1,383. When compared to a few of its southern neighbors, Tennessee averages less than Kentucky and Mississippi, which each come in around $1,820 and $1,840 each year, respectively.
There are several factors that contribute to the cost of home insurance in Tennessee. For example, certain areas of the state can experience flooding and storm surges due to heavy rain storms. Wildfires and tornadoes are also a concern in Tennessee, which can cause extensive property damage.
Tennessee homeowners insurance rates by city
|Tennessee city||Average annual premium for $250K dwelling coverage|
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: In 2021, some parts of Tennessee were devastated by flooding. 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. In 2021, there were 550 wildfires reported in Tennessee, resulting in 4,937 acres burned.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 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.