Tennessee Homeowners Insurance Quotes (2023)

Homeowners in Tennessee pay an average of $229 per month, or $2,748 per year, for homeowners insurance. That’s more than the national average of $205 a month.

The good news is you can find cheap home insurance options, including policies from Stillwater and Nationwide. Since homeowners in the state face the threat of severe storms and flooding, a home insurance policy with additional coverage options may be necessary.^[1] A standard homeowners insurance policy won’t cover flood damage, which makes obtaining extra coverage a consideration for many.

Best home insurance companies in Tennessee

Homeowners in the Volunteer State have access to many high-quality home insurance companies. However, everyone has a unique situation that affects their best option. Below is a look at some of the top options in the state.

Best large insurer: Nationwide

This major insurance company offers below-average rates to homeowners in Tennessee. On average, Nationwide offers home insurance to Tennessee residents at $165 per month. Nationwide also earned a close-to-average customer satisfaction rating in the 2022 J.D. Power Home Insurance Study, with a score of 816 out of 1,000.^[2]

Best insurer for cheap rates: Stillwater

Based on analysis from Insurify data scientists, Stillwater tends to offer the lowest rates. On average, homeowners in Tennessee pay $122 per month for a policy through Stillwater. That’s about $100 lower than the average cost for the state.

Best for storm coverage: Amica Mutual

In the 2022 J.D. Power Home Insurance Study, Amica Mutual earned the highest marks for customer satisfaction. The company scored 849 out of 1,000 and has locked in a reputation for helping customers through difficult claims.^[2]

One of Amica Mutual’s unique features is the option to get a dividend policy. If you file fewer claims, you might get a dividend to lower your insurance costs.

Best insurer for high-value homes: Chubb

As a homeowner with a high-value home, you might need more coverage than you’ll find in a standard policy. If you have more you need to insure, a high-value home insurance policy might be the solution. Chubb offers policies for high-value homes.

Chubb earned 809 out of 1,000 in the J.D. Power customer satisfaction study.^[2]

Best regional insurance company: Shelter Insurance

Shelter Insurance is a regional insurance company offering policies in 15 states, including Tennessee. It’s worth looking into this company due to its ample discounts and long list of coverage options.

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

How much is homeowners insurance in Tennessee?

On average, homeowners pay $229 per month for property insurance in Tennessee. However, the exact cost of your home insurance policy varies based on several factors. For example, your location and the type of home insurance policy you select greatly influence your costs.^[3]

How your policy choices affect home insurance rates in Tennessee

When you choose a homeowners insurance policy, you must make several decisions. You need to choose a policy form, deductible, coverage limits, and more. Every decision you make will affect your total costs.

Your policy form

Homeowners insurance policies fall into a few different forms. Each policy form offers different levels of coverage. Here’s a closer look at some of the most common policy forms:

• Basic form (HO-1): This often covers 10 perils. Many insurers no longer provide this policy form due to the limited nature of its coverage.

• Broad form (HO-2): This covers more perils than an HO-1. It can include protection for the dwelling, other structures, personal property, personal liability, and medical payments. Importantly, it covers only perils named in the policy.

• Special form (HO-3): This is the most popular option. It covers damage to the dwelling, other structures, personal property, personal liability, and medical payments. If a peril isn’t specifically excluded, HO-3 will cover the damage.

• Modified form (HO-8): This is often reserved for older homes with a high cost of rebuilding. It covers basic perils and rebuilding costs for older materials.^[4]

Home insurance policies outline how the insurance company will pay out a claim after a peril. A peril is the cause of a loss. For example, a fire would be a peril. The different forms of home insurance cover different perils.

In general, an insurance policy with more covered perils will come with higher costs than a policy with fewer covered perils. As you narrow down your options, confirm which perils are covered. Be sure to get a policy that offers an appropriate level of coverage for common perils in your area.

Your coverage level

A home insurance policy offers coverage up to a specified limit. A higher coverage limit offers more financial protection but often comes with higher costs. Lower coverage limits often come with lower costs. Find a balance that works for your budget and financial picture.^[5]

Your deductible

When you file a claim, a deductible is what you’ll pay out of pocket before insurance covers the rest. Opting for a higher deductible typically comes with lower insurance premiums.^[6]

Before choosing a high deductible, confirm you can pay it when the need arises. For example, you might want to keep enough money to cover a deductible in your emergency fund.

See Also: Selecting a Home Insurance Deductible

How location affects home insurance rates in Tennessee

Where you live affects your home insurance rates. Homeowners in different states can experience widely different rates. Even homeowners living in different parts of the same state can see a difference in average home insurance prices.

Some location-related factors that affect your home insurance costs include your proximity to a fire station, the expected frequency of weather events, and the likelihood of vandalism in your area.^[4]

Below are the average monthly quotes for select cities in Tennessee:

What are the cheapest home insurance companies in Tennessee?

The average homeowner in Tennessee pays $229 per month for home insurance. But on average, shoppers can find cheaper options through Stillwater at $122 per month, Grange at $154 per month, and Nationwide at $165 per month.

Your specific insurance needs might lead to higher or lower costs. But it’s worthwhile to know which insurance companies tend to offer the best rates in your state:

Check Out: Homeowners Insurance Companies with the Cheapest Rates

How much homeowners insurance do you need in Tennessee?

Homeowners insurance isn’t a legal requirement in Tennessee. But homeowners with a mortgage will likely find that their lender sets home insurance requirements. Even without a mortgage, many homeowners choose to pay for home insurance.^[4]

Beyond the requirements your mortgage company sets, you may want to insure your home for most of its replacement value. If you want to protect the personal property within your home, consider insuring it at the replacement cost or actual cash value. Homeowners should also consider what levels of personal liability coverage and medical payments coverage are best for their situation.^[5]

The key to selecting the right insurance policy is to understand exactly what the policy covers. Before signing up, confirm you’re comfortable with everything covered.

What home insurance coverages should you buy in Tennessee?

Here are some of the coverages you should consider buying:

• Dwelling: Dwelling coverage applies to your home and any attached structures. This is the basis of any home insurance policy.

• Other structures: Structures not attached to your home might include fences, accessory dwelling units, sheds, and more.

• Personal property: The items in your home can carry both financial and sentimental value. If you have specific high-value items, consider getting additional insurance.

• Liability coverage: If someone sues you in connection to your property, liability coverage can protect you. For example, if someone slipped and fell on your property, liability coverage may help pay the costs of a potential lawsuit.

• Medical payments coverage: If someone is hurt while at your house, this coverage can pay for their medical bills, regardless of fault.

• Loss of use coverage: If your home is getting repaired after a covered peril, you might have to move out temporarily. This coverage can help pay for living expenses while your home is fixed.^[4]

What optional home insurance coverages should you buy in Tennessee?

Standard home insurance policies might not cover all the perils in your area. But you can buy optional coverages to increase your protection:

• Flood insurance: Floods are a threat to Tennessee residents. But standard home insurance policies don’t include flood insurance. One option is to purchase flood insurance through the National Flood Insurance Program.

• High-value possessions: Most policies have a coverage limit on personal property. If you have high-value items, consider purchasing additional coverage to protect their value.^[4]

Learn More: Types of Homeowners Insurance: Which One Do You Need?

How much home insurance coverage should you have in Tennessee?

The amount of home insurance coverage you need varies based on your specific needs. As a homeowner, you need to consider the risk factors affecting your finances. Here’s what to consider when determining the right amount of coverage:

• Value of your home: The value of your home affects your insurance premiums. Homes with a higher value tend to be more expensive to insure.

• Location of your home: Homes face different risks based on location. For example, a home might be more at risk of flooding in a low-lying area.

• High-value contents: The value of the contents of your home might exceed the limits of your policy. If you have high-value items, consider additional insurance.^[5]

Before settling on any particular policy, get quotes from at least three different insurers. If you don’t shop around, it’s easy to accidentally pay more than you need to.

What are some of the biggest risks when owning a home in Tennessee?

Homeowners in the Volunteer State face many risks. Here’s a look at some of the most critical threats:

• Flooding: Deadly flooding events are a threat in Tennessee.^[7] Standard homeowners insurance policies don’t cover flood damage. But you may have the option to buy flood insurance through the National Flood Insurance Program.

• Severe storms: Severe weather can cause damage across the state. Most home insurance policies include coverage for storm damage.

• Wildfires: For many homeowners in Tennessee, wildfires are a significant threat. Many insurance policies include coverage against fires.^[8]

How can you save money on homeowners insurance in Tennessee?

Homeowners insurance is an unavoidable expense for many. But that doesn’t mean you should pay more than necessary. Here’s how to save money on homeowners insurance.

Bundle home and auto insurance

“Tennessee residents can save money on their homeowners insurance by working with the same insurance company for their home and auto to secure a multi-policy discount,” says William Styles, a COUNTRY Financial insurance agent in Tennessee. “That also makes it more convenient having everything with one company and one insurance agent.”

See More: Bundle Home and Auto Insurance: Save with Discounts

Raise your deductible

A higher deductible often comes with lower insurance premiums. If you can afford a higher deductible, you may pay lower premiums.^[6]

Improve your home security

If you invest in home security upgrades, many home insurance companies offer savings. The idea is that a secure home is less vulnerable to theft, which lowers the chance of a claim.^[6]

Comparison shop

Shopping around for home insurance is a key part of finding the best options. Take the time to get quotes from multiple insurance companies. Otherwise, you could end up paying more than you need to.

Average home replacement cost in Tennessee

The replacement cost of your home is the amount you’d need to spend on rebuilding or replacing your home with similar construction. The market value of your home is typically different from the replacement cost. Some experts recommend getting insured for 80% of your home’s replacement cost.

Tennessee homeowners insurance FAQs