Compare Homeowners Insurance In Tennessee
Tennessee homeowners insurance rates are in line with the nationwide average premium. Tennessee homeowners pay an average of $1,233 yearly for homeowners insurance, slightly above the average national homeowners insurance rate of $1,215.
We studied the Tennessee homeowners insurance market to find the best insurers. We analyzed premiums, policy offerings and overall customer satisfaction among homeowners insurance providers operating in the state. Here's what we found:
- Lowest homeowners insurance premium: Erie
- Runner-up for lowest rates: Allstate
- Best claims service: USAA
- Fewest complaints: Tennessee Farm Bureau
How much does homeowners insurance cost in Tennessee?
Tennessee homeowners pay an average of $103 a month for homeowners insurance. Rates tend to be a little higher in Tennessee than the national average due to severe weather threats and an above-average crime rate.
This table breaks down homeowners insurance rates over the past few years in comparison to the national average rate. The rate of homeowners insurance premiums in Tennessee hasn't been particularly consistent, but it hasn't taken any big leaps over the past few years either.
| Today | 2017 | 2016 | 2015 | |
|---|---|---|---|---|
| Tennessee annual average | $1,233 | $1,196 | $1,185 | $1,149 |
| Tennessee average price per month | $103 | $100 | $99 | $96 |
| U.S. annual | $1,215 | $1,211 | $1,192 | $1,173 |
| U.S. average price per month | $101 | $101 | $99 | $98 |
| Note: Average rates for today are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. Data from 2015-2017 sourced from NAIC. | ||||
Homeowners insurance rates may differ between providers. We recommend getting quotes from multiple companies before deciding on a homeowners insurance policy. This graph shows the average homeowners insurance rates of the biggest providers in Tennessee.
Average yearly cost of homeowners insurance in Tennessee
Best homeowners insurance companies in Tennessee
Erie, Allstate, USAA and Tennessee Farm Bureau came out as our top picks for homeowners insurance companies in Tennessee. Here's why:
Erie: cheapest homeowners insurance rates
Erie offers the cheapest homeowners insurance in Tennessee, with an average annual premium of $1,023, or $209 below the average rate in Tennessee of $1,232 a year.
You can save even more money with Erie if you bundle an auto insurance policy with a homeowners insurance policy. Bundling can save you between 16% and 25% on your yearly homeowners insurance premium.
Erie's reputation for keeping policyholders happy is solid as well. J.D. Power gave the company a rare five-out-of-five Power Circle rating in its 2019 home insurance study, indicating superior performance. Erie also had a rating of 0.20 in the NAIC Complaint Index for 2018. The index measures the amount of complaints an insurer receives relative to its size. The national average is 1.0, and a lower index value indicates better performance. Erie comes in well below the average Complaint Index of 0.31 in Tennessee.
Allstate: second-lowest homeowners insurance premium
Allstate comes in a very close second for the cheapest Tennessee homeowners insurance rates, with an average yearly premium of $1,076. Allstate also offers discounts for bundling insurance policies and updating your home security system, or if you are retired or in the military.
Allstate has a low NAIC Complaint Index rating of 0.29 in 2018. A.M. Best, the insurance industry rating agency, gave Allstate's financial strength an A+ rating in 2019. This combination of factors gives Allstate a strong footing among its competition in the Tennessee homeowners insurance market.
USAA: best claims service
USAA received one of only three five-out-of-five Power Circle ratings for overall customer satisfaction in J.D. Power's 2019 home insurance study. USAA received 878 out of 1,000 points for overall customer satisfaction in the study, the highest score given. USAA has maintained this top position for several years, showing a strong reputation for claims service and customer satisfaction.
USAA has provided insurance to enlisted military members, veterans and their families since 1922. A.M Best gave USAA an A++ in 2019 for its financial strength, which has served the company well.
Tennessee Farm Bureau: lowest complaint rate
Tennessee Farm Bureau rated an incredibly low 0.07 on the NAIC Complaint Index in 2018, four times lower than the average complaint rate for insurers in Tennessee. With an average homeowners insurance premium of $1,460, Tennessee Farm Bureau comes in a couple hundred dollars over the state yearly average of $1,232.
Despite the higher price tag, Tennessee Farm Bureau underwrites 19.5% of homeowners insurance policies in Tennessee, second only to State Farm, with a Tennessee market share of 23.8%. This could indicate that customers appreciate its strong, reliable service, even if they have to pay a bit more for it.
Biggest homeowners insurance companies in Tennessee
Here's a snapshot of the homeowners insurance market in Tennessee:
| Company | Market share | 2019 J.D. Power customer satisfaction rating | 2018 NAIC Complaint Index |
|---|---|---|---|
| State Farm | 23.80% | 4/5 | 0.2 |
| Tennessee Farm Bureau | 19.51% | - | 0.07 |
| Erie | 3.51% | 5/5 | 0.2 |
| Auto-Owners | 2.09% | 4/5 | 0.2 |
| USAA | 1.78% | 5/5 | 0.31 |
| Allstate | 1.16% | 3/5 | 0.29 |
To see how these insurers rank across the country, see our rankings of the best home insurance companies.
Homeowners insurance rates in Tennessee by city
Yearly home insurance premiums in Tennessee's 10 biggest cities vary by about $450. Johnson City has the lowest average rate at $983 yearly, while Jackson has the highest annual premium, at $1,435.
| City | Average annual homeowners insurance cost |
|---|---|
| Nashville | $1,115 |
| Memphis | $1,327 |
| Knoxville | $1,017 |
| Chattanooga | $1,080 |
| Clarksville | $1,112 |
| Murfreesboro | $1,315 |
| Franklin | $1,086 |
| Jackson | $1,435 |
| Johnson City | $983 |
| Bartlett | $1,286 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. | |
Homeowners insurance rates in Tennessee by county
Below is an overview of the average homeowners insurance rates across all counties in Tennessee. The average premiums are fairly close to the same price range as the city level. Sullivan County has the lowest average homeowners insurance rate of $983 a year.
| County | Average annual homeowners insurance cost |
|---|---|
| Anderson | $1,106 |
| Bedford | $1,288 |
| Benton | $1,454 |
| Bledsoe | $1,270 |
| Blount | $1,033 |
| Bradley | $1,089 |
| Campbell | $1,177 |
| Cannon | $1,372 |
| Carroll | $1,441 |
| Carter | $1,009 |
| Cheatham | $1,173 |
| Chester | $1,472 |
| Claiborne | $1,144 |
| Clay | $1,294 |
| Cocke | $1,157 |
| Coffee | $1,321 |
| Crockett | $1,501 |
| Cumberland | $1,229 |
| Davidson | $1,118 |
| Decatur | $1,452 |
| DeKalb | $1,261 |
| Dickson | $1,164 |
| Dyer | $1,496 |
| Fayette | $1,370 |
| Fentress | $1,362 |
| Franklin | $1,313 |
| Gibson | $1,495 |
| Giles | $1,333 |
| Grainger | $1,135 |
| Greene | $1,063 |
| Grundy | $1,341 |
| Hamblen | $1,047 |
| Hamilton | $1,081 |
| Hancock | $1,094 |
| Hardeman | $1,435 |
| Hardin | $1,457 |
| Hawkins | $1,024 |
| Haywood | $1,470 |
| Henderson | $1,494 |
| Henry | $1,419 |
| Hickman | $1,280 |
| Houston | $1,212 |
| Humphreys | $1,274 |
| Jackson | $1,237 |
| Jefferson | $1,102 |
| Johnson | $1,051 |
| Knox | $1,024 |
| Lake | $1,534 |
| Lauderdale | $1,478 |
| Lawrence | $1,420 |
| Lewis | $1,447 |
| Lincoln | $1,300 |
| Loudon | $1,050 |
| Macon | $1,349 |
| Madison | $1,446 |
| Marion | $1,239 |
| Marshall | $1,276 |
| Maury | $1,222 |
| McMinn | $1,243 |
| McNairy | $1,420 |
| Meigs | $1,234 |
| Monroe | $1,217 |
| Montgomery | $1,118 |
| Lynchburg | $1,296 |
| Morgan | $1,274 |
| Obion | $1,485 |
| Overton | $1,190 |
| Perry | $1,358 |
| Pickett | $1,276 |
| Polk | $1,195 |
| Putnam | $1,129 |
| Rhea | $1,236 |
| Roane | $1,137 |
| Robertson | $1,181 |
| Rutherford | $1,307 |
| Scott | $1,358 |
| Sequatchie | $1,244 |
| Sevier | $1,052 |
| Shelby | $1,323 |
| Smith | $1,299 |
| Stewart | $1,239 |
| Sullivan | $983 |
| Sumner | $1,196 |
| Tipton | $1,330 |
| Trousdale | $1,335 |
| Unicoi | $1,016 |
| Union | $1,123 |
| Van Buren | $1,324 |
| Warren | $1,336 |
| Washington | $996 |
| Wayne | $1,439 |
| Weakley | $1,424 |
| White | $1,231 |
| Williamson | $1,107 |
| Wilson | $1,,182 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. | |
Homeowners insurance perils in Tennessee
In addition to severe weather threats, Tennessee faces extreme crime problems as well. Homeowners insurance providers look at these as high-risk factors and may hike up policy rates because of them.
Flooding
Standard home insurance does not typically cover flooding. Most homeowners get flood insurance through FEMA's National Flood Insurance Program (NFIP). Between 1996 and 2016, The NFIP paid almost 7,535 claims in Tennessee, totaling more than $220 million in payouts.
NFIP flood insurance is purchased through insurance providers who participate in the program, as well as some independent insurers. The average annual cost of flood insurance in Tennessee is about $861, or $72 a month.
New research suggests that Tennessee flood risk is greater than previously thought, however. A new analysis by First Street Foundation found 3.8 times more properties at risk than the previous FEMA estimates, or an additional 281,813 properties at risk. In Montgomery County, for example, First Street found 7.8 times more properties at risk than FEMA.
| Most Populated Counties | FEMA total properties at risk | First Street total Properties at risk | Magnitude difference |
|---|---|---|---|
| Tennessee | 101,363 | 383,176 | 3.8x |
| Shelby County | 6,785 | 19,730 | 2.9x |
| Davidson County | 7,451 | 25,788 | 3.5x |
| Knox County | 3,363 | 20,184 | 6.0x |
| Hamilton County | 6,450 | 37,916 | 5.9x |
| Rutherford County | 3,680 | 8,013 | 2.2x |
| Williamson County | 2,571 | 6,770 | 2.6x |
| Montgomery County | 746 | 5,784 | 7.8x |
| Sumner County | 1,664 | 8,978 | 5.4x |
| Sullivan County | 1,718 | 9,496 | 5.5x |
| Wilson County | 1,951 | 6,599 | 3.4x |
First Street's rating system takes the rise in sea levels, creek floods and additional rainfall into account where FEMA does not, in addition to a number of other factors.
Crime
Standard homeowners insurance usually covers damage and loss due to burglary. You can take steps to reduce your chances of a robbery. Having an effective home insurance system, as well as making sure your doors and windows have strong locks, can reduce the chance of a break-in. Some insurers even offer discounts if you install a security system.
Sinkholes
Homeowners insurance doesn't typically cover sinkhole damage, but Tennessee home insurers are required by law to offer sinkhole insurance to homeowners to help protect against the threat. Sinkhole coverage usually has strict exclusions. Make sure to read the policy thoroughly to make sure you understand it.
Methodology
We compiled quotes for every ZIP code in Tennessee from six of the top insurers. We based our analysis on Erie, Allstate, USAA, Auto-Owners, Tennessee Farm Bureau and State Farm policy data. Quotes were for a home worth $188,207, built in 1982 and owned by a 57-year-old. These are the median home value, construction date and homeowner age in Tennessee.
We picked the insurers for our study using S&P Global Market Intelligence, which ensures results as localized to Tennessee as possible. The largest subsidiary in Tennessee of every insurer was taken as a representative for the company.
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