Best Homeowners Insurance in Tennessee (2024)
- Erie has the cheapest home insurance rates in the state, averaging $194 a month.
- Allstate has the best coverage options, while Farmers offers the most home insurance discounts.
Cheapest home insurance companies in Tennessee
Erie Insurance, State Farm and USAA have the cheapest home insurance in Tennessee.
Erie has the state’s cheapest home insurance rates overall, averaging $2,332 a year, or $194 a month.
State Farm and USAA are close behind, with rates that average $206 and $218 a month, respectively. However, only members of the military and their families can buy home insurance from USAA, though.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Erie Insurance | $2,332 | $194 |
| State Farm | $2,473 | $206 |
| USAA* | $2,611 | $218 |
| Tennessee Farmers | $2,671 | $223 |
| Progressive | $2,706 | $225 |
| Allstate | $3,242 | $270 |
| Shelter | $3,359 | $280 |
| Farmers | $3,465 | $289 |
Best home insurance companies in Tennessee
Allstate, Erie and Farmers are Tennessee’s best homeowners insurance companies because of their low rates, coverage options and/or selection of discounts.
| Company | Best for | Average rate | Customer satisfaction (higher is better) | Complaint index (lower is better) |
|---|---|---|---|---|
| Allstate | Coverage options | $3,242 | 809 (below average) | 1.3 (below average) |
| Erie Insurance | Cheap rates | $2,332 | 856 (above average) | 0.50 (above average) |
| Farmers | Discounts | $3,465 | 800 (below average) | 0.86 (above average) |
Sources: J.D. Power 2023 U.S. Home Insurance Study and 2023 complaint data from the National Association of Insurance Commissioners (NAIC)
Best overall: Erie Insurance
Erie Insurance is the best homeowners insurance company in Tennessee, due mostly to its low cost and positive ratings.
| Pros | Cons |
|---|---|
Cheapest home insurance rates in Tennessee, on average Standard policies provide guaranteed replacement cost coverage at no extra charge Extended water coverage add-on offers limited flood protection Excellent customer service and complaint ratings | Offers fewer home insurance discounts than most competitors Not as many add-on coverages as most competitors |
Best cheap home insurance rates: Erie Insurance
If your goal is to get the cheapest home insurance in Tennessee, Erie Insurance is likely the company for you. Erie offers the state’s cheapest average premium of $2,332 a year.
This is 18% cheaper than the state average rate of $2,857 a year — it’s also 6% cheaper than second-place State Farm, which has an average rate of $2,473 a year.
Best coverage options: Allstate
Though Allstate charges some of the highest home insurance rates in Tennessee, its selection of optional coverages and discounts could still make it the best company for your needs.
| Pros | Cons |
|---|---|
Most add-on coverage options of companies surveyed Good assortment of discounts | High average home insurance rate Customer satisfaction and complaint ratings are below average |
Best discounts: Farmers
Farmers’ average home insurance rates are the highest of the companies we surveyed in Tennessee.
Compared to the others, though, Farmers offers more discounts — including a good home-auto bundling option — which might make it the best company for some homeowners.
Some of Farmers’ home insurance discounts that could save you money:
- Bundle home and auto insurance policies with Farmers
- Install protective devices like fire alarms or a security system
- Add automatic gas or water shutoffs to your home
- Go three straight years without filing a claim
| Pros | Cons |
|---|---|
Widest range of discounts among companies surveyed Good complaint rating | High average home insurance rate Not as many add-on coverages as some competitors Customer satisfaction rating is below average |
How much is home insurance in Tennessee?
The average homeowner in Tennessee pays $2,857 a year for home insurance. That’s $238, if paid monthly.
This average cost is for a typical home with a dwelling limit of $400,000. If the dwelling limit of your home insurance policy is lower than $400,000, you’ll usually pay less than this amount. If your limit is higher, you’ll likely pay more.
Tennessee home insurance rates by coverage amount
| Dwelling limit | Average rate |
|---|---|
| $350,000 | $2,570 |
| $400,000 | $2,857 |
| $450,000 | $3,172 |
What you pay for homeowners insurance in Tennessee depends on a number of factors, including:
- Amount of coverage you buy
- Deductible you choose
- Your credit, insurance and claims history
- Age of your home
- Where you live in the state
One of the best ways to find out how much a home insurance policy will cost for you is to compare home insurance quotes from several companies.
Tennessee home insurance rates by city
Kingsport homeowners pay the lowest average home insurance rates among Tennessee’s largest cities, at an average of $2,036 a year, or $170 a month.
Memphis has the state’s most expensive home insurance rates, which average $3,631 a year, or $303 a month.
| City | Annual rate |
|---|---|
| Bartlett | $3,260 |
| Chattanooga | $2,540 |
| Clarksville | $2,608 |
| Collierville | $3,282 |
| Franklin | $2,531 |
| Hendersonville | $2,547 |
| Jackson | $3,294 |
| Johnson City | $2,089 |
| Kingsport | $2,036 |
| Knoxville | $2,352 |
| Memphis | $3,631 |
| Murfreesboro | $2,863 |
| Nashville | $2,698 |
| Smyrna | $2,740 |
| Spring Hill | $2,623 |
Additional home insurance coverages needed in Tennessee
Along with a standard home insurance policy and any add-on coverages that fit your needs, you should also consider both sinkhole and flood insurance as a Tennessee homeowner.
The state doesn’t require you to buy either of these types of insurance coverage, but you may need to buy flood insurance if you have a mortgage and live in a high-risk flood zone.
Flood insurance
Standard home insurance policies don’t cover flood damage or destruction — you’ll need separate coverage for that. You can buy flood insurance in Tennessee through the government-run National Flood Insurance Program (NFIP) or from private flood insurance companies.
NFIP flood insurance policies offer up to $250,000 coverage for your home and $100,000 for your possessions. If you need or want more than those amounts, contact private flood insurance companies.
Sinkhole insurance
Tennessee is one of the most sinkhole-prone states in the U.S., according to the American Geosciences Institute. This is important to know, as standard homeowners insurance doesn’t cover sinkhole damage.
It’s fairly easy to protect yourself from this kind of destruction, though, as state law requires all insurance companies in Tennessee to offer optional sinkhole coverage.
Frequently asked questions
Erie Insurance offers the best home insurance rates in Tennessee, at $2,332 a year, or $194 a month, on average.
Another company may have the best and cheapest rates for you, though, if you qualify for certain discounts. This is why you should compare homeowners insurance quotes from several companies while you shop for coverage.
The average cost of home insurance in Tennessee is $2,857 a year, or $238 a month.
Tennessee law doesn’t require homeowners to buy home insurance — most lenders do require it, though. Your lender may also make you get flood insurance for your home if it’s in a high-risk flood zone.