The Best Home Insurance in Tennessee for 2023
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At $1,980 per year, on average, home insurance in Tennessee costs more than the annual national average of $1,820, according to NerdWallet’s rate analysis. But when choosing homeowners insurance, price isn’t the only thing that matters. You’ll also want to make sure your policy will cover problems you might face in Tennessee, such as tornadoes, flooding and sinkholes.
NerdWallet analyzed rates from insurers across the state to determine the best homeowners insurance in Tennessee.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.
The best homeowners insurance in Tennessee
If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.
Company | NerdWallet star rating | Average annual rate |
|---|---|---|
$1,790 | ||
$2,210 | ||
$2,660 | ||
USAA* | $1,605 | |
*USAA homeowners policies are available only to active military, veterans and their families. | ||
More about the best home insurance companies in Tennessee
See more details about each company to help you decide which one is best for you.
Coverage options
Discounts
NAIC complaints
State Farm
Coverage options
Discounts
NAIC complaints
State Farm is a great choice for homeowners who like to work directly with a company representative, as the company sells policies through a wide network of agents. And its attention to customer service has paid off; the company has fewer customer complaints to state regulators than expected for a company of its size, according to the National Association of Insurance Commissioners.
State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.
Learn more with our State Farm homeowners insurance review.
Coverage options
Discounts
NAIC complaints
Erie
Coverage options
Discounts
NAIC complaints
Based in Pennsylvania, Erie is a regional insurer that offers guaranteed replacement cost for the structure of your home. With this coverage, the company will pay to rebuild your home completely after a disaster, even if the amount exceeds your dwelling limit. Not all insurers offer this option, but it’s worth considering as a hedge against rising construction costs.
Got a car to insure, too? If you bundle your home and auto insurance with Erie, you could get a discount of around 20%. You may also be able to save if your home has certain safety and security features such as smoke alarms or sprinkler systems.
For more details, read our Erie home insurance review.
Farmers
Coverage options
Discounts
NAIC complaints
Farmers
Coverage options
Discounts
NAIC complaints
Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.
Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.
Learn more with our Farmers homeowners insurance review.
Coverage options
Discounts
NAIC complaints
USAA
Coverage options
Discounts
NAIC complaints
USAA sells homeowners insurance to veterans, active military and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.
Homeowners in Tennessee can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart home devices. These include water leak sensors, cameras and thermostats.
Learn more in our USAA homeowners insurance review.
How much does homeowners insurance cost in Tennessee?
The average annual cost of home insurance in Tennessee is $1,980. That’s 9% more than the national average of $1,820.
In most U.S. states, including Tennessee, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Tennessee, those with poor credit pay an average of $4,260 per year, according to NerdWallet’s rate analysis. That’s 115% more than those with good credit.
Average cost of homeowners insurance in Tennessee by city
How much you pay for home insurance in Tennessee will depend on your ZIP code. For example, the average cost of homeowners insurance in Nashville is $1,855 a year, while homeowners in Memphis pay an average of $2,540 per year.
City | Average annual rate | Average monthly rate |
|---|---|---|
Antioch | $1,870 | $156 |
Brentwood | $1,745 | $145 |
Chattanooga | $1,825 | $152 |
Clarksville | $1,815 | $151 |
Cleveland | $1,760 | $147 |
Collierville | $2,145 | $179 |
Columbia | $1,940 | $162 |
Cookeville | $1,820 | $152 |
Cordova | $2,195 | $183 |
Crossville | $1,850 | $154 |
Franklin | $1,740 | $145 |
Gallatin | $1,805 | $150 |
Hendersonville | $1,775 | $148 |
Jackson | $2,230 | $186 |
Johnson City | $1,550 | $129 |
Kingsport | $1,515 | $126 |
Knoxville | $1,660 | $138 |
Lebanon | $1,870 | $156 |
Maryville | $1,610 | $134 |
Memphis | $2,540 | $212 |
Mount Juliet | $1,845 | $154 |
Murfreesboro | $1,925 | $160 |
Nashville | $1,855 | $155 |
Sevierville | $1,675 | $140 |
Smyrna | $1,870 | $156 |
The cheapest home insurance in Tennessee
Here are the insurers we found with average annual rates below the Tennessee average of $1,980.
Company | NerdWallet star rating | Average annual rate |
|---|---|---|
Westfield | 4.0 NerdWallet rating | $1,190 |
Not rated | $1,715 | |
$1,790 | ||
$1,925 | ||
USAA* | $1,605 | |
*USAA homeowners policies are available only to active military, veterans and their families. | ||
What to know about Tennessee homeowners insurance
When shopping for home insurance in Tennessee, you’ll want to make sure you have adequate coverage for tornadoes, flooding and sinkholes.
Tornadoes
Tennessee is prone to severe weather events, such as tornadoes, which can cause significant damage to homes. You’ll want to review your home insurance policy to be sure it covers the types of damage that strong tornado winds can cause — such as shingles ripped off of roofs or fallen trees.
While most standard homeowners policies cover wind damage, you may have a separate deductible for wind or hail damage. (A homeowners insurance deductible is the amount subtracted from your claim payout.)
For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for wind claims. So if your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $2,500 of wind damage yourself.
Flooding
Flooding is also a considerable risk for homeowners, especially those who live in low-lying areas or near bodies of water. Typically, homeowners insurance policies don’t cover water damage caused by flooding. You’ll need to purchase additional flood insurance if you’re at risk.
To find out how great a chance your home has of flooding, put your address into the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Even if you don’t live in a flood plain, it could be worth buying flood insurance for a little extra peace of mind.
Note that while you can purchase flood coverage anytime, there’s typically a 30-day waiting period before your policy takes effect.
Sinkholes
Tennessee is one of the states that sees the most sinkhole damage, according to the U.S. Geological Survey. That’s due to its karst landscape, made up of rock that can dissolve in water. Sinkholes are most common in the central and eastern parts of the state.
Most standard homeowners insurance policies won’t cover the damage if a sinkhole collapses or starts to form beneath your home. By law, Tennessee homeowners insurance companies must offer you the option to add sinkhole coverage to your policy.
Tennessee insurance department
Tennessee’s Department of Commerce and Insurance oversees the state’s insurance industry. On its site, you can access consumer resources and educational information about insurance. You can also file a complaint against your insurance company online or by mail or fax. For answers to specific insurance questions, call the agency at 800-342-4029.
Looking for more insurance in Tennessee?
Amanda Shapland contributed to this story.
NerdWallet averaged rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:
$300,000 in dwelling coverage.
$30,000 in other structures coverage.
$150,000 in personal property coverage.
$60,000 in loss of use coverage.
$300,000 in liability coverage.
$1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Star rating methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.
Complaint methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
