Best homeowners insurance in Tennessee (2024)

We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in Tennessee.

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By

Jennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Edited by

Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.
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Reviewed by

Kristi Sullivan, CFP®Kristi Sullivan, CFP®Certified Financial PlannerKristi Sullivan, CFP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, she was a regional consultant at Fidelity Investments for nine years.

Updated|4 min read

Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

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Homeowners in the eastern parts of Tennessee have access to one of the most diverse ecological climate sites on the planet in Great Smoky Mountain National Park. But from Tennessee's tornado season in the spring and fall and heavy rainstorms in the summer months, the weather can also be unpredictable. 

The average cost of homeowners insurance in Tennessee is $2,095 per year or $175 a month. This is 19% higher than the national average of $1,754. 

Compare home insurance rates in Tennessee

However, the cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Tennessee. 

Home

UPDATE: Home insurance premiums up 20% in Tennessee

Home insurance premiums in Tennessee increased 20% from May 2022 to May 2023, according to our latest analysis of internal policyholder data. This is due to a mix of rising construction costs, labor shortages, and severe natural disasters that have caused insurance companies to increase rates and establish stricter underwriting rules to offset the risks.

You can find all of the details in our 2023 Policygenius Home Insurance Pricing Report.

Compare the best homeowners insurance companies in Tennessee

Policygenius found the best homeowners insurance companies in Tennessee by analyzing quotes across every ZIP code in the state. We also looked at J.D. Power customer satisfaction scores and compared that with the coverage needs of Tennessee residents to find the best homeowners insurance in the state.

Company

Best for...

Average monthly cost

Policygenius rating

Auto-Owners Insurance

Overall

$138

5.0 out of 5

State Farm

Claims satisfaction

$231

4.8 out of 5

Farmers

Coverage options

$278

4.5 out of 5

Erie

Short-term rental owners

$158

4.5 out of 5

Allstate

Cheap rates

$134

4.4 out of 5

Methodology & why you can trust our rates

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Compare home insurance rates in Tennessee

Best overall home insurance in Tennessee: Auto-Owners

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2024 Policygenius award winner

Auto-Owners Insurance

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

Offers flood insurance

Why we chose itchevron icon

Auto-Owners Insurance is our highest-rated homeowners insurance company in Tennessee thanks to its mix of extensive policy and coverage options, high marks for financial strength and customer experience ratings, and affordable premiums.

Pros and conschevron icon

Pros

  • Offers a slew of extra coverage add-ons

  • Lots of discounts available

  • Flood insurance available through the NFIP

Cons

  • Not able to get quotes or file claims online

More detailschevron icon

Why Auto-Owners Insurance is our pick for best overall company

Auto-Owners Insurance is our pick for the best overall home insurance company in Tennessee. The company scored at least a 4 out of 5 for price, customer experience, coverage options, and financial strength, which earned it a perfect 5 out of 5 Policygenius rating.

With endorsements like guaranteed replacement cost, water backup protection, inland flood coverage, and a comprehensive Homeowners Plus endorsement package, Auto-Owners offers excellent value for the coverage you're getting.

Finally, while Auto-Owners offers cheap homeowners insurance, the company also offers a range of discounts that can help lower your insurance rates even more.

How much does Auto-Owners home insurance cost in Tennessee?

The average cost of Auto-Owners home insurance in Tennessee is $1,658 per year, according to sample quotes provided to us by Quadrant Information Services. This makes Auto-Owners Insurance about 21% cheaper than the statewide average. 

Best home insurance for claims satisfaction: State Farm

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2024 Policygenius award winner

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

Offers flood insurance

Offers earthquake insurance

Wind/hail deductible

Offers wildfire insurance

Why we chose itchevron icon

State Farm is the one of the top home insurance companies in Tennessee thanks to its high customer service marks, large selection of policy options for most home types, and industry-best financial stability ratings.

Pros and conschevron icon

Pros

  • High customer satisfaction and financial strength ratings

  • Top-tier coverage add-ons, including extended replacement cost coverage

  • Offers large discounts when you bundle your home and auto insurance

Cons

  • 20% more complaints filed with the NAIC than other companies of its size

  • No discounts for first-time homebuyers

  • More expensive than average in Tennessee

More detailschevron icon

Why we chose State Farm

State Farm is the best company in Tennessee for homeowners wanting top-rated customer service. The company has received high ratings from policyholders according to J.D. Power’s 2022 customer satisfaction, claims, and digital experience surveys.

Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.

While we like State Farm's robust coverage options, State Farm doesn't have the cheapest home insurance in Tennessee. We found that rates are about one third more expensive than the statewide average.

How do State Farm home insurance rates compare to the Tennessee average?

The average cost of State Farm home insurance in Tennessee is $2,766 per year, which is 32% higher than the average annual premium in Tennessee.

How to get a quote

Online through State Farm or by contacting your local State Farm agent.

Best home insurance for customer service: Farmers

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2024 Policygenius award winner

Farmers

Farmers Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Farmers is one of the best home insurance companies in Tennessee for its range of coverage add-ons, discounts, and high claims satisfaction scores.

Pros and conschevron icon

Pros

  • Optional extended or guaranteed replacement cost dwelling coverage

  • Receives few complaints from policyholders

  • High claims satisfaction score

Cons

  • Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys

  • Much higher rates than average in Tennessee

More detailschevron icon

Why we chose Farmers

Farmers offers homeowners in Tennessee lots of optional coverages that they can add to a basic policy. Some of these coverages include guaranteed or extended replacement cost coverage, water backup protection, and a personal articles floater.

Farmers also earned a high score in J.D. Power’s 2022 claims satisfaction study (though it was below-average on J.D. Power’s overall customer satisfaction and digital experience surveys). Plus, Farmers receives fewer complaints than average, according to the National Association of Insurance Commissioners.

How do Farmers home insurance rates compare to the average in Tennessee?

The average cost of Farmers home insurance in Tennessee is $3,330 per year, which is much more expensive than the average annual premium of $2,095 per year.

How to get a quote

Online through Farmers

Best home insurance for short-term rental owners: Erie

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2024 Policygenius award winner

Erie

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Mobile app

Bundle home & auto

Why we chose itchevron icon

Erie's short-term rental endorsement, along with a wide range of other coverage options, industry-best customer service ratings, and affordable rates make it one of the best home insurance options in Tennessee.

Pros and conschevron icon

Pros

  • Offers short-term rental endorsement

  • Cheap rates in Tennessee

  • Excellent customer service and claims satisfaction ratings

Cons

  • Just three available discounts

More detailschevron icon

Why we chose Erie

Erie offers a range of add-ons, like short-term rental coverage, equipment breakdown coverage, water backup protection, underground service line coverage, and more.

Standard home insurance policies from Erie also come with guaranteed replacement cost coverage — which you often have to pay extra for at other companies. A basic policy covers lost and misplaced items, jewelry, and gift cards to closed businesses, too.

We found that Erie has cheaper homeowners insurance in Tennessee than average, as well. The company's cheap rates will make it easier to add more coverage to an already-robust basic policy.

How do Erie home insurance rates compare to the average in Tennessee?

The average cost of Erie home insurance in Tennessee is $1,890 per year. That's 10% cheaper than the statewide average cost of $2,095 per year.

How to get a quote

Online through Erie

Best home insurance for cheap rates: Allstate

award icon

2024 Policygenius award winner

Allstate

Allstate logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option for its cheap rates and solid customer service.

Pros and conschevron icon

Pros

  • Offers some of the best rates in the state

  • Extensive list of discounts and policy features to lower your bill and out-of-pocket costs

  • A+ credit rating with A.M. Best

Cons

  • Beginning to pull back coverage in high-risk areas

  • Customer experience scores with J.D. Power are below the segment average

More detailschevron icon

Why we chose Allstate

Allstate's homeowners insurance rates in Tennessee are much cheaper than average. Plus, the company offers discounts that will be easy for many people to qualify for, like discounts for setting up automatic payments, bundling policies, and signing up for coverage before your current policy expires.

We also like Allstate's high customer satisfaction ratings. This, and Allstate's excellent coverage options — like scheduled personal property coverage, short-term rental coverage, and water backup protection — make it one of our top choices for homeowners insurance in Tennessee.

How do Allstate home insurance rates compare to the Tennessee average?

The average annual cost of an Allstate home insurance policy in Tennessee is $1,613 per year, 23% cheaper than the statewide average.

How to get a quote

Online through Policygenius or Allstate, or by contacting a local Allstate agent.

How much is homeowners insurance in Tennessee?

The average cost of homeowners insurance in Tennessee is $2,095 per year, or $175 a month, for an insurance policy with $300,000 in dwelling coverage. This means insurance in Tennessee is more expensive than the national average cost of $1,754 per year.

Tennessee homeowners insurance rates by city

Home insurance costs in Tennessee can vary widely depending on where you live. For example, home insurance in Memphis costs $2,197 per year, while in Brentwood the average cost of coverage is just $1,745 per year.

Here’s a look at the average cost of home insurance in the 20 largest cities in Tennessee.

City

Average monthly cost

Average annual cost

Difference from state average (%)

Memphis

$183

$2,197

5%

Knoxville

$165

$1,983

-5%

Chattanooga

$162

$1,940

-7%

Clarksville

$161

$1,935

-8%

Murfreesboro

$171

$2,055

-2%

Franklin

$148

$1,778

-15%

Johnson City

$151

$1,813

-13%

Jackson

$183

$2,200

5%

Hendersonville

$158

$1,892

-10%

Bartlett

$171

$2,052

-2%

Smyrna

$169

$2,024

-3%

Kingsport

$151

$1,810

-14%

Spring Hill

$156

$1,867

-11%

Collierville

$177

$2,128

2%

Cleveland

$153

$1,837

-12%

Gallatin

$158

$1,897

-9%

Columbia

$173

$2,074

-1%

Brentwood

$145

$1,745

-17%

Lebanon

$162

$1,939

-7%

Mount Juliet

$161

$1,930

-8%

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Tennessee homeowners insurance rates by coverage amount

The table below highlights the average annual premium in Tennessee for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.

Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.

Compare home insurance rates in Tennessee

Cheapest homeowners insurance companies in Tennessee

Looking at average home insurance costs for the 15 most popular insurers in Tennessee, we found that the cheapest homeowners insurance companies in Tennessee are State Auto, Westfield, Allstate, and USAA.

Company

Average annual cost

State Auto

$1,053

Westfield Insurance

$1,527

Allstate

$1,613

USAA

$1,650

American National

$1,651

Auto-Owners Insurance

$1,658

Erie

$1,890

Progressive

$1,928

Shelter Insurance

$1,953

Tennessee Farmers

$2,047

State Farm

$2,766

Farmers

$3,330

Celina Insurance

$4,209

Travelers

$5,685

Collapse table

Cheapest Tennessee homeowners insurance if you have poor credit

The cheapest homeowners insurance company in Tennessee for residents with poor credit is Tennessee Farmers.

If you have a poor credit score, your homeowners insurance rates will be higher. Insurance companies charge higher premiums to homeowners with lower credit scores because they believe these policyholders are more likely to make future claims.

Company

Average annual cost

Tennessee Farmers

$2,047

Shelter Insurance

$2,471

USAA

$2,739

Allstate

$2,788

Progressive

$2,820

Westfield Insurance

$2,944

State Auto

$3,889

American National

$4,581

Farmers

$4,617

State Farm

$4,752

Erie

$5,395

Celina Insurance

$8,350

Auto-Owners Insurance

$17,149

Travelers

$18,913

Collapse table

Cheapest Tennessee homeowners insurance if you have an older home

Older and historic homes are usually more expensive to insure than newer homes. Insurers consider them a higher risk because they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code.

Here are the cheapest home insurance options in Tennessee for a 50-year-old home.

Company

Average annual cost

State Auto

$1,132

Allstate

$1,590

American National

$1,651

Westfield Insurance

$1,659

USAA

$1,676

Auto-Owners Insurance

$1,834

Progressive

$1,950

Shelter Insurance

$1,953

Tennessee Farmers

$2,047

Erie

$2,130

State Farm

$2,763

Farmers

$3,482

Celina Insurance

$5,181

Travelers

$7,364

Collapse table

Cheapest Tennessee homeowners insurance if you have a history of claims

One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more claims later on.

Here are the cheapest home insurance companies in Tennessee for a homeowner with three claims within a five-year period.

Company

Average annual cost

Auto-Owners Insurance

$1,886

Tennessee Farmers

$2,273

Shelter Insurance

$2,375

State Auto

$2,386

American National

$2,395

USAA

$2,429

Progressive

$2,556

State Farm

$2,763

Allstate

$2,936

Erie

$3,031

Westfield Insurance

$3,597

Farmers

$6,033

Celina Insurance

$7,029

Travelers

$8,207

Collapse table

Coverage options in Tennessee

When buying homeowners insurance in Tennessee, you should be aware of what your policy does and doesn’t cover. There are a few additional types of insurance you may need to consider getting to protect against the state’s flooding, wildfires, and tornadoes.

Flood insurance

Most homeowners insurance policies don’t cover flood damage, so Tennessee residents in at-risk areas should consider flood insurance on top of their regular insurance policy.

In addition to comparing home insurance quotes, homeowners in Tennessee can also compare private flood insurance rates with Policygenius, or choose a policy through a government entity like the National Flood Insurance Program.

Tornado insurance

From 2010 to 2022 Tennessee experienced 452 tornadoes. [1] Although homeowners insurance usually covers wind and tornado damage, be sure you have enough insurance to rebuild your home if it's destroyed in a tornado by adding replacement cost coverage to your policy.

Since Tennessee has a high number of tornadoes compared to other states, it's possible that a company won't cover wind damage or may charge a separate deductible after a tornado damages your home. In this case, you could get a separate windstorm policy — or find another company that does cover wind damage.

Wildfire insurance

It's important for homeowners in Tennessee to be prepared for stronger and more frequent wildfires. While most home insurance policies cover fire damage, consider adding replacement cost coverage to be sure you can fully rebuild your home after a fire.

You may have a hard time getting coverage if you live somewhere that's prone to wildfires. If this is the case, you could get coverage from a surplus lines carrier or take steps to lower your fire risk:

  • Creating a defensible space around your home by removing flammable vegetation

  • Tree pruning

  • Raking or removing any dead leaves or brush from your roof, gutter, or yard

  • Installing a fire-resistant “Class A” roof

  • Installing dual- or triple-paned windows

How to buy homeowners insurance in Tennessee

Homeowners in Tennessee have many great options when it comes to home insurance. To help make the process easier, be sure to follow the five steps below.

  1. Reach out to a licensed Policygenius agent. Our team of licensed home insurance experts will help you find the right policy to suit your coverage needs, all while saving you time and money.

  2. Ask if you should purchase flood coverage. With Tennessee's unpredictable weather, homeowners in high-risk floodplains should talk to a Policygenius agent about purchasing flood insurance.

  3. Figure out how high of a deductible you can afford. A higher deductible means you’ll pay less upfront for home insurance, but it also means you'll pay more when it comes time to file a claim. A Policygenius agent can help you choose a deductible that works within your budget.

  4. Compare quotes from a Policygenius agent. Once you identify your coverage needs and input a few brief details about you and your house, a Policygenius agent will send over quotes from several top companies.

  5. Sign on the dotted line and pay your first premium. After you’ve settled on a home insurance policy that works for you, all you need to do is sign and pay your first premium. Policygenius will handle the rest.  

Compare home insurance rates in Tennessee

Frequently asked questions

What is the average home insurance cost in Tennessee?

The average home insurance rate in Tennessee is $175 a month or $2,095 per year. That’s about $196 more per year than the national average.

How can I lower my home insurance cost in Tennessee?

The quickest way to lower the cost of your home insurance is by comparing quotes with Policygenius. Once you’ve reviewed your options, we can do all of the paperwork for you, and even cancel your old policy if it isn’t expired yet.

Is it mandatory to have home insurance in Tennessee?

It isn’t required to have home insurance in Tennessee, but definitely a smart move to protect your home and assets against catastrophic losses. While not legally required to have home insurance in Tennessee, many mortgage lenders require you to purchase home insurance before extending a home loan, to protect their investment.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. National Weather Service

    . "

    Tennessee Tornado Stats

    ." Accessed July 11, 2023.

Author

Jennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Editor

Pat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

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