Tennessee homeowners pay an average of $2,079 a year for homeowners insurance. Erie policyholders pay the state's lowest average home insurance rate of $1,706 a year, according to our research. To help you with this, we've looked at the five biggest home insurance providers in Tennessee and compared their rates, policy offerings and customer satisfaction trends.
In this article, we will cover:
Cheapest home insurance in Tennessee
After researching some of the top home insurers in Tennessee, Erie offers the cheapest average rate at $142 a month. This is 20% lower than the state average of $173 a month. Tennessee Farmers Mutual Insurance Company has the highest average rate among Tennessee home insurance companies at $199 a month.
| Company | Average annual premium |
|---|---|
| Allstate | $2,221 |
| Erie | $1,706 |
| Shelter Insurance | $1,986 |
| State Farm | $2,078 |
| Tennessee Farmers Mutual Insurance Company | $2,387 |
| USAA | $2,098 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does home insurance cost in Tennessee?
Homeowners insurance in Tennessee costs an average of $173 a month. This is the 14th highest rate among U.S. states.
| Region | Monthly rate |
|---|---|
| U.S. | $146 |
| Tennessee | $173 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Because home insurance companies look at many different factors when providing a quote, you could qualify for lower premiums with different companies. We recommend comparing quotes from multiple home insurers when shopping for insurance. The most common factors home insurance companies look at include:
- Your home's age and construction details
- Your location
- Your home's replacement cost value
- Your claim history
You can lower your annual premium by increasing your deductible amount. If you raise your deductible from $500 to $2,000, your annual premium may drop by 20%, on average.
| Deductible | Average annual premium |
|---|---|
| $500 | $2,264 |
| $1,000 | $2,079 |
| $1,500 | $1,942 |
| $2,000 | $1,861 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Best home insurance companies in Tennessee
We looked at the six most popular home insurance companies in Tennessee and compared their average rates, offerings and customer satisfaction trends. Erie and State Farm stand out for their strong customer service ratings and competitive rates and discounts.
Best for cheap rates: Erie
Erie has the lowest average home insurance rate in Tennessee at $1,706 a year, or $142 a month. That's 20% less than the state average. The table below shows average rates for Erie home insurance in the 10 most populous cities in Tennessee.
| City | Average annual premium |
|---|---|
| Nashville-Davidson | $1,578 |
| Memphis | $1,783 |
| Knoxville | $1,275 |
| Chattanooga | $1,320 |
| Clarksville | $1,699 |
| Murfreesboro | $1,635 |
| Franklin | $1,329 |
| Jackson | $1,948 |
| Johnson City | $1,102 |
| Bartlett | $1,788 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Best overall: State Farm
State Farm's nationwide availability, great discounts and customer service make it our choice for the best insurer in Tennessee. State Farm has thousands of agents across the country, which is important if you value face-to-face interaction.
State Farm has an average annual rate of $2,078, which is $1 less than the state average. Like most insurance companies, State Farm offers multiple ways to save on your premium. When combining your auto and home policies with State Farm, you could save you up to $1,127.
State Farm also has a great customer service score. In J.D. Power's home insurance study, State Farm received a score of 835 out of 1,000, which is 10 points higher than the segment average.
Best for customer service: Erie
Among the companies in our analysis, USAA, Erie and State Farm have the highest overall satisfaction scores from J.D. Power. J.D. Power's overall satisfaction ranking is based on a 1,000-point scale, which factors in surveys from customers, policy offerings, price, billing process, policy information and claims.
We also reviewed the National Association of Insurance Commissioners' (NAIC) Complaint Index, which compares insurance companies by the number of confirmed complaints they receive. The national complaint index is 1.0. A company with a 2.0 complaint index has twice as many confirmed complaints as expected, and a company with a 0.5 complaint index has half as many as expected. The Complaint Index shows that Erie had the fewest confirmed complaints than expected in 2021, the most recent year for which data is available.
| Company | 2021 J.D. Power overall satisfaction (higher is better)** | 2021 NAIC complaint index (lower is better)* |
|---|---|---|
| Allstate | 829 | 1.12 |
| Erie | 835 | 0.30 |
| Shelter Insurance | - | 0.47 |
| State Farm | 835 | 1.01 |
| Tennessee Farmers Mutual Insurance Company | - | - |
| USAA | 882 | 0.46 |
| Note: Complaint Index data from NAIC. J.D. Power ratings from 2021 U.S. Home Insurance Study. | ||
Find cheap home insurance in Tennessee
Home insurance rates in Tennessee by city
Homeowners insurance premiums can vary greatly between cities in Tennessee. Johnson City has the lowest average annual rate at $1,668, while Jackson has the highest at $2,337.
| City | Average annual premium |
|---|---|
| Nashville-Davidson | $1,929 |
| Memphis | $2,273 |
| Knoxville | $1,723 |
| Chattanooga | $1,842 |
| Clarksville | $1,927 |
| Murfreesboro | $2,241 |
| Franklin | $1,852 |
| Jackson | $2,337 |
| Johnson City | $1,668 |
| Bartlett | $2,198 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Homeowners insurance perils in Tennessee
Home insurance rates in Tennessee tend to be higher than most states. In addition to severe weather, Tennessee crime levels may hike up policy rates.
Flooding
Standard home insurance does not cover flooding. Most homeowners get flood insurance through FEMA's National Flood Insurance Program (NFIP). You can purchase NFIP flood insurance through insurance providers who participate in the program. The average annual cost of flood insurance in Tennessee through the NFIP is about $996, or $83 a month.
In Tennessee, the total amount of payments for all claims was $288,364 in 2022 as of March. New research suggests that Tennessee's flood risk is even greater than previously thought. An analysis by FloodFactor found over 401,355 properties in Tennessee at risk of flooding within the next 30 years.
Crime
According to the FBI's Crime Data Explorer, in 2020, there were 34,682 violent-crime incidents and 46,760 offenses reported in Tennessee. Tennessee's property crime rate is also 26% higher than the average crime rate in the U.S., according to SafeHome.org.
Standard homeowners insurance usually covers damage and loss due to burglary. You can take steps to reduce your chances of being a victim of theft, like having an effective home security system and making sure your doors and windows have strong locks to reduce the chance of a break-in. Some insurers even offer discounts if you install a security system.
Methodology
In our analysis, we obtained quotes from every ZIP code in Tennessee for a homeowners insurance policy on a standard home with the following limits and deductible:
- $275,000 dwelling coverage
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.