Best homeowners insurance in Tennessee

Everything you need to know about the cost of homeowners insurance by company and city, the state’s best insurance companies, and top-of-mind coverage considerations for Tennessee homeowners.

Pat Howard 1600

Pat Howard

Published March 12, 2020

KEY TAKEAWAYS

  • Homeowners insurance in Tennessee is the 22nd cheapest in the country with a $1,196 average annual premium

  • Homeowners insurance companies in Tennessee are required to provide coverage for sinkhole damage

Homeowners insurance is a crucial form of financial protection for Tennessee homeowners. With homeowners insurance, your home is covered in the event it’s burglarized or damaged by bad weather or frequent disasters in the Volunteer State, like hail storms, tornadoes, and wildfires. It also covers other dwellings on your property, additional living expenses, and legal expenses if you accidentally injure someone or damage their property and they decide to pursue a legal reward.

Not only is home insurance essential for Tennessee property owners, but it’s also required by most mortgage companies as a prerequisite to getting a home loan. Most mortgage companies will stipulate that you have enough homeowners insurance to cover the value of the mortgage, but you should make sure you have more than just the stated insurance requirements. You’ll want enough standard and supplemental insurance protection to cover the rebuild value of your home and your combined assets in the event of a worst-case scenario.

Find out the cost of homeowners insurance in Tennessee; the average quoted premium in Nashville and Memphis — Tennessee’s two biggest markets; the top ten insurance companies in Tennessee by market share; and a briefer on specific homeowners insurance considerations for Tennessee homeowners.

IN THIS ARTICLE

Best homeowners insurance companies in Tennessee

When selecting a homeowners insurance policy, Tennessee homeowners will want to look at far more than simply the cost of coverage. Consider the insurer’s financial standing with credit agencies like A.M. Best, customer service and claims ratings with J.D. Power, and the price for the level of coverage you’re getting, amongst other factors. A company that offers flexible policy options and numerous discounts to keep those premiums low should be a top priority for Tennessee homeowners.

The table below looks at the 10 most popular insurers (companies with the highest market share) in Tennessee, along with respective A.M. Best ratings, J.D. Power ratings, and Policygenius full-scale company ratings. And here’s more information about the Policygenius home insurance reviews methodology:

Insurance companyA.M. Best ratingJ.D. Power ratingPolicygenius rating
AllstateA+3/57.4/10
Auto-Owners InsuranceA++4/5N/A
ErieA+5/5N/A
FarmersA3/57.5/10
NationwideA+2/57.7/10
Safeco (a division of Liberty Mutual)A+2/57.3/10
State FarmA++4/58/10
Tennessee FarmersA+N/AN/A
TravelersA+2/57.7/10
USAAA++5/58.7/10

➞ And be sure to check out our guide on the best homeowners insurance companies in the country.

How much does homeowners insurance in Tennessee cost?

The average yearly premium for homeowners insurance in Tennessee is $1,196, making it the 22nd cheapest state in the country to insure your home, according to the Insurance Information Institute. That puts the cost of homeowners insurance in the Volunteer State right around the national average of $1,211.

When setting your rates, homeowners insurance companies will consider the following for Tennessee homeowners, among other factors:

  • The home’s proximity to certain location-based risks, like a wildfire area or a neighborhood with frequent property crime
  • The age of the home
  • The structural build and roof type of the home
  • Your credit score and loss history
  • Your standard deductible and hurricane deductible amount

➞ Read more about the cost of homeowners insurance.

Cost of homeowners insurance in Tennessee by city

Here’s a city-by-city breakdown of how much you can expect to pay for homeowners insurance in locales throughout Tennessee, according to home insurance quotes submitted with Policygenius. Keep in mind that the following is merely an average of properties that Policygenius has quoted and the sample size for certain cities is larger than others.

CityAverage annual premium
Altamont$6,804
Clarksville$2,199
Cordova$3,304
Franklin$2,246
Gallatin$1,618
Germantown$4,336
Jackson$3,796
Knoxville$994
Lawrenceburg$3,942
Lebanon$1,666
Loudon$1,420
Mason$4,687
Memphis$2,192
Mount Pleasant$2,948
Nashville$1,781
Paris$1,492
Sparta$519
Spring Hill$1,666
Springfield$1,841
Woodbury$2,987
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Average homeowners insurance cost in Nashville

The average annual cost of homeowners insurance in the Nashville is $1,780 for a home with $370,000 in dwelling coverage, according to Policygenius quoting data. While that’s higher than the state average premium of $1,196, keep in mind that the average policy cost for a Tennessee home with $300,000–400,000 in coverage is anywhere from $1,400 to $1,700, according to the National Association of Insurance Commissioners — Nashville insurance costs don’t differ too much from the state average at that level of coverage.

➞ Check out our guide to the best homeowners insurance in Nashville.

Nashville homeowners insurance cost by company

Insurance companyAverage annual premium
Hippo$1,363
Metlife$2,083
Nationwide$1,773
Safeco$2,218
Stillwater$1,415
Travelers$1,622

Nashville homeowners insurance cost by ZIP code

ZIP codeAverage annual premium
37013$1,863
37189$1,899
37189$1,899
37206$1,312
37211$2,068
37216$1,125
37221$1,992

Average homeowners insurance cost in Memphis

The average annual cost of homeowners insurance in the Memphis is $1,944 for a home with $300,000 in dwelling coverage, according to Policygenius quoting data. Like Nashville, homeowners insurance in Memphis is more expensive than the state average cost of $1,196.

➞ Check out our guide to the best homeowners insurance in Memphis.

Memphis homeowners insurance cost by company

Insurance companyAverage annual premium
Hippo$1,700
Metlife$3,546
Nationwide$1,841
Safeco$2,228
Stillwater$1,837
Stillwater$1,837
Travelers$2,018

Memphis homeowners insurance cost by ZIP code

ZIP codeAverage annual premium
38103$1,511
38115$2,180
38116$3,301
38134$1,959
38134$1,959

Tennessee homeowners insurance guide

Tennessee is a landlocked state that doesn’t have to worry about coastal disasters like several of its Southern counterparts, but it still sees its fair share of hail storms, tornadoes, wildfires, and sinkholes, as well as human-induced perils like theft and vandalism. Luckily, all of these things are covered by homeowners insurance. But you should consider adding supplemental coverages to your policy to go above and beyond the limits of standard coverage.

Supplemental coverage for tornadoes, hail storms, and wildfires

Most of Tennessee falls within Dixie Alley, an area stretching from East Texas to as far east as Georgia that is particularly susceptible to violent tornadoes in the late fall (October through December). Tornado frequency and the strength of twisters seem to be increasing in recent years in the Southeastern United States, as seen recently with the recent Nashville tornado. Hail storms are also an expensive problem for homeowners in Tennessee — as large enough hail has the power to tear through roofing and smash windows.

Additionally, Tennessee homeowners should ensure their homes are well protected against potential wildfire damage. According to States at Risk, a project aimed at measuring the impact of climate change in all 50 states, 2.3 million people in Tennessee — or 37% of the state’s population — are living in areas at an elevated risk of wildfires.

While homeowners insurance covers tornadoes, hail, and wildfires, Tennessee homeowners should make sure they’re fully covered in the event of a large-scale disaster. That means adding additional dwelling coverage protection like extended replacement cost (increases your dwelling limit 25–50% if rebuild costs go up after a disaster) and guaranteed replacement cost (reimburses you for a full rebuild regardless of the cost).

There are also a number of risk-prevention measures you can take yourself to better protect your home and potentially lower your insurance premiums: storm-resistant shingles, shutters, and doors, as well as clearing brush and trimming tree branches around your home will all lower your chances of incurring a loss and your insurer may even reward you with a discount.

Why is homeowners insurance so expensive in Tennessee?

Homeowners insurance is going up in Tennessee, and a lot of that might have to do with all of the people moving there — especially Metro-Nashville and the suburbs of Franklin and Murfreesboro. Homeowners insurance is generally more expensive in population-dense areas — there’s a greater demand to build so construction and labor simply cost more. And that directly affects homeowners insurance premiums.

But as we pointed out earlier, climate change and the frequent disasters that accompany it have especially impacted states in the southern half of the country more likely to experience tornadoes and wildfires. The risk associated with climate change has caused insurance premiums to go up across the board — not just in Tennessee.

Tennessee insurance laws

The Tennessee Department of Insurance has regulations in place to protect Tennessee homeowners. Here are a couple that Tennessee homeowners should be aware of:

  • Every company offering homeowners insurance must make coverage available for sinkhole losses
  • Insurance companies can’t increase your premium or cancel or policy for a simple policy inquiry related to coverage or filing a claim

Additional resources for Tennessee homeowners

Not where you live? We've got you covered, check out our guide to homeowners insurance in your state

About the author

Insurance Expert

Pat Howard

Insurance Expert

Pat Howard is an Insurance Editor at Policygenius in New York City, specializing in homeowners insurance. He has been featured on Property Casualty 360, MSN, and more. Pat has a B.A. in journalism from Michigan State University.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

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