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Cheap Tennessee Home Insurance Rates & The Best Companies

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On average, Tennesseans are paying $1,196 every month on homeownership costs. There are 3 million houses in the Volunteer State, 66% of which are occupied by owners.

  • Population: 6,770,010
  • Average value of homes that’s occupied by owners: $151,700
  • Households: 2,547,194
  • Average household income: $48,708
  • High school grad or higher, percent of people age 25 years +: 87%
  • Average travel time to work: 25 min

The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.

Tennessee ranks in the 16th position when it comes to most disaster-prone states across the USA. TN accounts for a terrible history of some of the most dangerous natural catastrophes including tornadoes, earthquakes, blizzards, thunderstorms, and floods. Property crime rates are relatively high in TN as well. If we look at the Statista figures, the average property crime rate in Tennessee was almost 3,000 per 100,000 residents in 2017. These factors comprehensively influence homeowners insurance rates in TN.

With home insurance premiums ranging widely from homes in one area to the next, we advise that you compare quotes from as many insurers as possible to ensure that you get the best deal around without compromising on coverage. Our free comparison tool can help you with your research by quickly providing you with a list of home insurance providers in your area helping you save time. Read more below to learn more about the premiums in TN.

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Cheap home insurance Tennessee

If we compare the home insurance rates in TN with that of other states, Tennessee seems to be on a relatively lower end. According to the figures published by the Insurance Information Institute (III), Tennessee comes in the 21st position out of 51 states, in terms of home insurance rates. The average annual homeowners insurance rate here is $1,185 which is slightly lower than the national annual average of $1,192. On the other hand, the monthly average homeowners insurance rate in-state is $98.75, while $99 is the national monthly average. Now although the homeowners insurance rates here are just slightly lower than the national average, it won’t hurt you to check out different insurers before the final sign-up. Not only will you get to compare rates, but also between coverage options and discounts.

Average Tennessee Home Insurance Premiums

Monthly average$98.75$96$95
Annual average$1,185$1,149$1,139
National annual average$1,192$1,173$1,132
Source: The annual average premiums came from the Insurance Information Institute’s latest recorded data. We calculate the estimated monthly insurance costs based on the data provided.

It’s worth noting here that these mean numbers are meant to serve as an educational tool only. When getting quotes from insurers, it’s a good idea to look at the above numbers to see where your quotes fall. Are you getting quoted higher than the average premium for homeowners in TN? If so, it’s time to look at your conditions to see why this is so. You may ask the agent why your quote is higher or look in to other providers to see if they are also giving you a higher than average quote. There will be variations in the numbers as the numbers we provided are averages, meaning some will fall below or above this number. Nevertheless, it’s always good to know so that you’ll get an idea if the insurer is charging you way too much to insure your home.

Top 3 leading insurers in TN by market share

The post below offers a concise list of some of the top home insurance companies in Tennessee. You will find information on the coverage options, rate-cuts, and many other important factors. Our reviews also feature an idea about the financial strength of each of the companies based on the ratings provided by S&P & AM Best.

AM Best is a leading credit rating agency that offers a neutral and independent opinion about the financial strength of the insurance companies in the USA. On the other hand, S&P is revered as one among the big 3 credit rating agencies. Additionally, we will feature reviews from international marketing information services company, JD Power. The Power Circles Rating are the only consumer ratings which are based on impartial and independent feedback from verified service & product owners. 

State Farm

State Farm, the largest home insurance provider in Tennessee, holds 24 percent share in Tennessee homeowners insurance market. The company extends a broader spectrum of coverage in comparison to most of the competitors here and hence an extremely popular option for TN homeowners. State Farm provides insurance coverage for almost any kind of housing structure here. Whether you are living in a condo or a single-family home or a manufactured home-you will get your coverage. The firm also extends home insurance for ranches and farms.

Added to the standard home insurance coverage, the company enables customers to opt for additional coverage for personal liability, home businesses as well as valuables protection.  You will get rate-cuts for impact-resistant roofing as well as a smoke alarm & burglar alarm.

State Farm is known for its excellent financial stability and the company is timely with the payments. It has received an A++ (Superior) rating from AM Best, as well as AA (Very Strong capacity) from S&P. State Farm has earned a 3 (About average) Power Circles Rating out of 5 from JD Power’s 2018 U.S. Home Insurance Study.

State Farm comes with a convenient, accessible and straightforward quote process online. The company website is bustling with various articles on various concepts regarding home value, insurance, and home insurance rates.

State Farm has got around the clock claims hotline so that you can inform the company about your emergency even at odd hours.

Compare home insurance quotes
Use our free comparison tool to compare rates from best providers in your area

Tennessee Farmers

Tennessee Farmers is the biggest farm bureau of the country and owns almost 20 percent of the market share in  TN’s homeowners insurance market. The company extends low-insurance coverage to members of Farm Bureau. Tennessee residents can sign up for membership with Farm Bureau which costs around $25. The membership will not only make you eligible for the affordable home insurance rates but will also enable you to make use of many exclusive discounts.

The Tennessee Farmers extends homeowners insurance for all standard dwellings, farms and personal properties. It also offers liability coverage.The company has earned B++ (Good) rating from AM Best which proves its solid financial hold.

It’s to note here that since Tennessee Farmers is focused on one particular region, it’s well acquainted with the specific aspects of the state. It enables Tennessee Farmers to provide more attentive client services and a more focused operation compared to the big names that operate nationwide. 

Liberty Mutual

One of the oldest of insurance companies in the USA, Liberty Mutual owns the 3rd largest market share in the USA homeowners insurance space. In TN, the company holds a 7.7 percent share, also third behind State Farm and Tennessee Farmers. Its standard homeowners insurance policy extends coverage for personal property, structures, liability protection as well as relocation expenses. If you want further protection, you can opt for further coverage options available for unusual structures and valuables.

Liberty Mutual has received an A (Excellent) rating from AM Best and A (Strong capacity) from S&P. The high ratings only speak of the powerful financial footing of the company. It has got 3 (About average) out of 5 Power Circles Rating from JD Power.

In regards to discounts, the company extends rate-cuts for having multiple policies, safety & security devices at home and for no-claims history for 5 years.

Mention must be made of the Liberty Mutual mobile app which is very current with its sleek modern design that assures easy scrolling and form filling. The app also provides additional details on how to file a claim. The app can be used for payments claim submission and many other important tasks.

Tennessee Home Insurance Companies: Market Share and Summary of Ratings

RankInsurerMarket Share %AM BestS&PJD Power
1State Farm24.1A++AA3
2Tennessee Farmers19.5B++
3Liberty Mutual7.7AA3
7Nationwide Mutual4.1A+A+3
NR: Not rated
Source: Insurance Information Institute, AM Best, S&P, JD Power

Home repair grants by THDA

The Tennessee Housing Development Agency extends different grant programs via National Housing Trust Fund (NHTF), the Low-Income Home Energy Assistance Program (LIHEAP), the Weatherization Assistance Program, and the HOME program. These grants offer to fund for house repair initiatives for very-low-income and low-income disabled, elderly as well as special needs citizens of TN.

The dynamics

In the aftermath of the tornadoes and large hail storms that were experienced in Tennessee in 2011 and 2012, insurance companies in the state were forced to make large payments to the affected homeowners. As a result, the carriers had to device ways of becoming profitable once more. The policies implemented by these companies have gone a long way in defining the state’s insurance market.

Homeowners insurance rates have been on the rise. This is a result of the fact that insurers are trying to raise money to cover any catastrophic events that might occur in future. Besides this, many companies have undertaken policy changes aimed at reducing coverage for hail storms and wind. Some companies limit roof payouts by not offering full replacement costs on roofing.

Minimum deductibles have also been significantly increased to an average of over $1,000 per occurrence. Besides this, some Tennessee insurers have exclusively restricted new policies to clients who package their auto and home insurance together. Such firms require you to place your car coverage as part of a larger package for you to benefit from your homeowners insurance.

Underwriting guidelines have also been tightened by insurance companies in a bid to lower the number of claims that can be accepted for both renewal and new customers. Most Tennessee insurance have stopped admitting new clients who have made more than two homeowners insurance claims in the last three years.

Rates in Tennessee vs. rest of the nation

A recent research conducted by the National Association of Insurance Commissioners indicates that on average, homeowners insurance increased by 3.3 percent in 2014. Louisiana homeowners paid the highest insurance premium ($1,967) while Oregon homeowners paid the lowest ($659). Tennessee homeowners paid an average of $1,185 in the year 2016 (latest available data). On average, American homeowners paid $1,192 in the same year.

in 2014, 5.3 percent of insured homes in America had a claim with property damage including burglary and theft accounting for nearly 98% of those claims. Most homeowners insurance companies across the U.S. do not provide coverage for sinkhole claims. Nonetheless, insurers in Tennessee are required to offer this coverage.

Saving money

There are several strategies that you can use to save money when purchasing a homeowners insurance policy. It is advisable to raise your deductible since the more money you can afford to pay, the more you save. You can have a deductible of up to $10,000 if you can cover those costs up front before your insurer steps on.

Buying your car and home insurance from the same company makes you eligible for discounts of up to 15% off your premium. In addition, avoid areas that are prone to natural disasters and also ask your insurance company whether it offers group coverage through businesses or even alumni associations.

Compare home insurance quotes
Use our free comparison tool to compare rates from best providers in your area


United States Census Bureau  

Insurance Information Institute

Consumers Advocate 

For more assistance, please contact your local state department of insurance:

Tennessee Department of Insurance

Check out Tennessee’s neighboring states

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