The Best Tennessee Home Insurance Companies
Tennessee homeowners pay an average of $156 a month for homeowners insurance. Erie policyholders pay the state’s lowest average home insurance rate of $127 a month, according to our research. While the state rate is above the national average, with a little research and comparison shopping, you should be able to find the best home insurance quote at a great premium.
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:
How much does home insurance cost in TN?
Homeowners insurance in Tennessee costs an average of $156 a month. This is 8% higher than the average national home insurance rate of $144 a month. Many factors can affect your final home insurance premium including the age of your home, the materials used to construct it and where it's located.
| Region | Monthly rate |
|---|---|
| U.S. | $144 |
| Tennessee | $156 |
The best, cheapest Tennessee home insurance companies
Looking at the five top home insurers in Tennessee, Erie offers the cheapest average rate at $127 a month. This is 19% lower than the state average of $156 a month. Allstate has the highest average rate among Tennessee home insurance companies at $181 a month.
In studying these providers, we discovered that some of these companies have unique strong points that may be of interest to you when you are comparing home insurance quotes. Here's what we found:
Erie: cheapest home insurance premium in Tennessee
Erie insurance maintains the cheapest home insurance rate in Tennessee at $127 a month, with State Farm having the second-lowest rate of $150 a month. Below is a table showing Erie's average home insurance rate in Tennessee's 10 biggest cities:
State Farm: cheap rates and most popular Tennessee home insurer
State Farm has an average rate of $150 a month in Tennessee. Barring Murfreesboro and Jackson, the largest cities in Tennessee see lower average State Farm rates than that.
Despite not having the cheapest home insurance rate in Tennessee, State Farm carries the largest number of policyholders. It holds 17.9% of the home insurance market share, with Allstate having the second-highest share at 8.9%.
State Farm’s rating of 880 out of 1,000 on J.D. Power's Property Claims Satisfaction Study is just slightly below the national average of 883. Furthermore, it has a rating of 0.06% in the National Association of Insurance Commissioners (NAIC) Complaint Index, which reflects an insurer's ability to deal with claim process and payout. The lower a company's complaint index, the better. This is a key reason for State Farm's popularity.
Tennessee Farmers Mutual: best local home insurance company
For those who want their home insurance provider to be up close and personal, Tennessee Farmers Mutual is a good choice. On top of having an average rate of $151 a month, 3% lower than the state rate of $156, this company’s territory is reserved to the Volunteer State. This makes them very knowledgeable and understanding of the home insurance needs of Tennessee homeowners.
USAA: best home insurance company for Tennessee military veterans
According to the Department of Veterans Affairs, there are over half a million veterans currently living in Tennessee. If you are among that number, USAA is an excellent recommendation for homeowners insurance.
While USAA offers an average rate of $150 a month for home insurance in Tennessee, the highest of the companies we looked at in the state, USAA is often considered "the best of the best" in the insurance industry. J.D. Power rated USAA with a 905 out of 1,000 in their 2021 Property Claims Satisfaction Study, the highest rating given to any insurer. The only reason USAA isn't in J.D. Power's annual ranking is due to USAA's solely serving military members. Below is an overview of USAA's average premium in Tennessee's largest cities:
Home insurance rates in Tennessee by city
Of the most popular insurers in Tennessee, Erie has the cheapest rate of $91 a month in Knoxville. Allstate carries the highest premium of $221 in Murfreesboro. The majority of cities in Tennessee enjoy average rates equal to the state average of $156 a month, if not less.
| City | Allstate | Erie | State Farm | Tennessee Farmers | USAA |
|---|---|---|---|---|---|
| Bartlett | $152 | $134 | $130 | $200 | $168 |
| Chattanooga | $145 | $95 | $127 | $136 | $138 |
| Clarksville | $145 | $127 | $122 | $132 | $154 |
| Franklin | $156 | $96 | $133 | $132 | $152 |
| Jackson | $211 | $147 | $181 | $166 | $160 |
| Johnson City | $145 | $77 | $118 | $134 | $123 |
| Knoxville | $114 | $91 | $125 | $143 | $128 |
| Memphis | $161 | $133 | $141 | $200 | $170 |
| Murfreesboro | $221 | $121 | $160 | $149 | $179 |
| Nashville | $138 | $117 | $128 | $150 | $147 |
When looking at these rates, keep in mind that many factors will affect your final home insurance premium. These include:
- Crime rates in your area
- Extreme weather history in your area
- The coverage limits you choose
- Your claim history
Homeowners insurance rates in Tennessee by county
The table below shows average homeowners insurance rates for some of Tennessee's most populated counties. Sullivan County has the lowest average rate, at $1,451 a year.
| County | Average annual premium* |
|---|---|
|
Shelby |
$1,982 |
|
Davidson |
$1,683 |
|
Knox |
$1,495 |
|
Hamilton |
$1,585 |
|
Rutherford |
$2,021 |
|
Williamson |
$1,680 |
|
Montgomery |
$1,680 |
|
Sumner |
$1,827 |
|
Sullivan |
$1,451 |
|
Wilson |
$1,792 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *A deductibe of $1,000 was used to calculate rate. | |
Homeowners insurance perils in Tennessee
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 $953, or $79 a month.
Between 1996 and 2016, the NFIP paid nearly 7,535 claims in Tennessee, totaling more than $220 million. New research suggests that Tennessee's flood risk is even greater than previously thought. An analysis by FloodFactor found over 489,000 properties in Tennessee at risk of flooding, and within 30 years, about 501,000 properties will be at risk.
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 United States, 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. Having an effective home security 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.
Methodology
We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in Tennessee from the following providers:
- Allstate
- Erie
- State Farm
- Tennessee Farmers Mutual
- USAA
Our sample home used the following policy specifications:
- Dwelling coverage: $275,000
- Personal property coverage: 50% of dwelling ($137,500)
- Other structures coverage: 10% of dwelling ($27,500)
- Loss of use coverage: 20% of dwelling ($55,000)
- Liability coverage: $100,000
Coverage sets were calculated using the following deductible limits unless otherwise noted:
- $500
- $1,000
- $1,500
- $2,000
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