Best Home Insurance Rates In Tennessee

On average, your neighbors pay $96 a month.

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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:

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.

Average cost of home insurance in Tennessee
  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

average cost of homeowners insurance companies 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:

Home insurance companies in Tennessee at a glance
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.

Average annual home insurance premium by city
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.

Average annual home insurance premium by county
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.

Tennessee properties at additional flood risk
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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