There truly is something for everyone in the Volunteer State. It's no secret why more than half a million people moved there over the past decade and why there are more than two million homeowners.
Tennessee home insurance is essential to protect what could be the biggest investment you’ll make. According to Carter Lawrence, the Commissioner of the Tennessee Department of Commerce and Insurance and State Fire Marshall, “Homeowners insurance is critically important because it financially protects consumers’ most valuable property – their homes.”
Tennessee’s average home insurance cost for $300,000 dwelling coverage and $300,000 in liability with a $1,000 deductible is $4,233 per year. It’s higher than the national average of $3,144 for the same coverage level, but there are ways to find savings. For example, a policy with USAA costs roughly $2,139 per year, half the state average.
There are other ways to find cheap Tennessee homeowners insurance, but it’s important to keep in mind that cheaper isn’t always better. That’s why Insurance.com provides you with the best Tennessee homeowners insurance options based on factors such as best companies overall, cheapest, top for customer service and more.
Key takeaways
- The average home insurance cost in Tennessee is $4,233 per year or $352.75 per month.
- Tennessee home insurance costs nearly 35% more than the national average.
- Our Insurance.com rate analysis found that USAA and Tennessee Farmers Mutual Insurance Co. have the cheapest homeowners insurance in Tennessee.
- Johnson City has the cheapest homeowners insurance TN rates at $2,620 per year, while Laconia is the most expensive ($4,125 per year).
- 4 Best homeowners insurance companies in Tennessee
- The average cost of homeowners insurance in Tennessee
- Cheapest homeowners insurance companies in Tennessee
- Tennessee homeowners insurance rates by ZIP code and city
- Homeowners insurance rates in Tennessee by coverage level
- Homeowners insurance discounts in Tennessee
- Frequently asked questions about Tennessee homeowners insurance
- Homeowners insurance rates in Tennessee by city
4 Best homeowners insurance companies in Tennessee
There are dozens of insurance carriers offering homeowners insurance in Tennessee. We used consumer survey data to identify the four best homeowners insurance companies in Tennessee. To further narrow the list down to four carriers, we looked at:
- A.M. Best financial ratings for an insurer's ability to meet its financial obligations
- J.D. Powers annual study for customer satisfaction ratings
- Size of carrier based on number of policies written
- Insurance.com rate analysis based on homeowners insurance quotes in Tennessee
- Carrier policy offerings, discounts available and special coverages
We awarded the top carriers with an Insurance.com score based on the criteria mentioned. The four best homeowners insurance TN carriers based on the highest scores are:
- Erie Insurance: Best for new home construction
- Allstate: Best for cheap homeowners insurance in Tennessee
- State Farm: Best for customer service
- USAA: Best for military members and family
| Company | Best for | A.M. Best rating | J.D. Power score | |
|---|---|---|---|---|
| Erie | New construction | A+ | 835 | |
| Allstate | Cheap homeowners insurance in Tennessee | A+ | 829 | |
| State Farm (tied with Erie) | Customer service | A++ | 835 | |
| USAA | Military members and family | A++ | 882 |
Erie Insurance: Best for new home construction
Are you building a new home? Erie Insurance makes it easy for Tennessee homeowners to get the coverage they need, especially when building a new home. You’ll receive a homeowners insurance TN discount for being the owner of a newly constructed home in addition to replacement cost coverage. If you've got animals, birds or fish you're in luck because Erie offers a special coverage of up to $500 for them, too.
Home insurance add-ons:
- Water backup & sump overflow
- Personal liability
- Identity recovery
- Service line protection
- Home-sharing
- Criminal defense reimbursement
Tennessee home insurance discounts available:
- Advanced quote discount
- Multi-policy discount
- Fire, burglary alarm, sprinkler system discount
Fast fact: Erie's founders, H.O. Hirt and O.G. Crawford wrote their business prospectus on a 10-cent tablet in 1925.
Allstate: Best for cheap homeowners insurance in Tennessee
When you’re on a strict budget and need cheap homeowners insurance in Tennessee, get a quote from Allstate. Our Insurance.com rate analysis found that Allstate had the cheapest rates of the top major carriers. Tennessee’s average home insurance cost is $3,096 per year, with annual premiums as low as $966. You may be able to find cheaper rates from smaller or regional insurance providers, but Allstate’s level of customer service and strong financial standing deliver value.
Home insurance add-ons:
- Identity theft restoration
- Water backup
- Scheduled personal property
- Green rebuild
- Yard and garden
- Water backup
- Business Property
- Musical instruments
- Sports equipment
- Electronic data recovery
Homeowners insurance TN discounts available:
- Responsible payer
- Multi-policy
- Claims-free
- Welcome
- Loyalty
- New home buyer
- New construction
- Early signing
- Autopay
- Protective devices
Fast fact: The first Allstate policy was sold in 1931 and was an auto insurance policy on a 1930 Studebaker.
State Farm and Erie: A tie for best for customer service
State Farm and Erie earned the second-highest J.D. Power score for customer satisfaction of the four best Tennessee companies reviewed. USAA topped the chart at 882, but since USAA's coverage reach is limited to military members and their families, we decided to select the next highest ranking insurer. State Farm and Erie both scored 835.
Since we already talked about Erie's offerings in the "Best for new home construction" category, we'll focus on State Farm here.
Part of the reason policyholders awarded State Farm an 835 out of 1,000 is likely the 19,000 local State Farm agents available to answer questions, help find the best savings or follow up on claims. Besides the personal service, State Farm gets high marks for its digital presence. The website and mobile app are well designed. You can file your claims through the app, upload photos and receipts and track progress.
Home insurance add-ons:
- Replacement cost
- Flood
- Earthquakes
- Pet coverage
Homeowners insurance discounts available:
- Multi-policy
- Protective devices
- Roofing
Fast fact: State Farm employs approximately 55,000 people.
USAA: Best for military members and family
There are eight active military bases in Tennessee and hundreds of thousands of residents affiliated with the military. USAA offers home insurance for retired, honorably discharged veterans, active duty, active reserves and their families. With military life in mind, USAA covers military-specific losses like uniforms that are lost or damaged for active duty or deployed members.
Home insurance add-ons:
- Identity theft
- Home-sharing
- Earthquake
Tennessee home insurance discounts available:
- Protective device
- Claims-free
- Bundle
- Home-age
- Impact-resistant roof
- Firewise
- Loyalty
- Good payment history
Fast fact: By 2022, USAA will have served the military community for 100 years.
The average cost of homeowners insurance in Tennessee
Insurance.com collected rates for Tennessee homeowners insurance to identify the average cost of coverage. Homeowners pay an average of $4,223 per year. Homeowners insurance Tennessee premiums are more expensive ($1,079 more) than the national average of $3,144 per year.
Keep in mind that your Tennessee home insurance quote can vary. The average is a snapshot, including high and low rates. In addition, many factors can affect the cost of homeowners insurance, including home value, level of coverage, ZIP code and the carrier you choose.
Next, we’ll break down average figures based on some of the other factors that affect your premiums.
Cheapest homeowners insurance companies in Tennessee
Our findings of the cheapest carriers in the state are based on 300,000/1,000/300,000 coverage levels. USAA returned the lowest homeowners insurance Tennessee rates. However, USAA is only available to military personnel and their families, limiting coverage reach.
Tennessee Farmers Mutual Insurance Company had the next cheapest homeowners insurance in Tennessee at $2,354 per year ($196 per month).
| Company | Avg. annual premium |
|---|---|
| USAA | $2,139 |
| Tennessee Farmers Mut Ins Co | $2,354 |
| Travelers | $2,897 |
| Allstate | $3,096 |
| Safeco | $3,838 |
| Erie Ins Co | $3,931 |
Tennessee homeowners insurance rates by ZIP code and city
As mentioned, rates can vary based on where you live. Johnson City has the cheapest TN homeowners insurance rates at $2,620 per year. Laconia is the most expensive area at $4,125 per year on average.
| City | ZIP code | Avg. annual premium | |
|---|---|---|---|
| Highest rate | Laconia | 38045 | $4,125 |
| Lowest rate | Johnson City | 37604 | $2,620 |
To get an idea of how much you and your neighbors can expect to pay for homeowners coverage, use our Insurance.com homeowner’s insurance calculator.
Homeowners insurance calculator Tennessee
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
To find home insurance averages for your area, enter your ZIP code, coverage amounts and a target deductible and click on “Search.” Change the deductible and coverage limits to compare how your premium can vary.
Homeowners insurance rates in Tennessee by coverage level
The limits of your policy can affect your premium. When determining how much home insurance you need, setting the home’s sale value as the coverage limit isn’t the most accurate way. Costs to rebuild may be more — or less — than your home’s value. In addition, you don’t need to insure the land value. Keep it in mind when determining your coverage level.
| Coverage Set | Avg. Annual Premium |
|---|---|
| $200,000 with $1,000 deductible and $100,000 liability | $3,081 |
| $200,000 with $1,000 deductible and $300,000 liability | $3,097 |
| $300,000 with $1,000 deductible and $100,000 liability | $4,203 |
| $300,000 with $1,000 deductible and $300,000 liability | $4,223 |
| $400,000 with $1,000 deductible and $100,000 liability | $5,475 |
Homeowners insurance discounts in Tennessee
Buying more than one type of coverage with an insurance provider could earn you a bundling discount. The most significant savings come from bundling home and auto insurance.
| Bundle | Avg. annual base premium | Avg. annual premium | Avg. dollar difference | Avg. percent diff |
|---|---|---|---|---|
| Home and auto | $2,787 | $2,337 | -$450 | -16% |
| Home and life | $2,244 | $2,189 | -$55 | -2% |
| Home and umbrella | $2,987 | $2,918 | -$69 | -3% |
Frequently asked questions about Tennessee homeowners insurance
How much is homeowners insurance in Tennessee?
The average home insurance cost in Tennessee is $4,233 per year, which breaks down to $352.75 per month. However, you could find lower premiums by taking advantage of carrier discounts and shopping around for coverage.
Is flood insurance included in a home insurance policy?
Flooding is not included as part of your homeowners policy. If you live in a flood zone or worry about extreme storms, you’ll need to purchase flood insurance as an add-on or separately through the National Flood Insurance Program (NFIP).
