Homeowners insurance in Tennessee is not required by the state, but it’s likely required if you have a mortgage. Even if your home is owned outright, homeowners insurance can help protect your and your family’s financial security since it helps repair or replace your home and its contents. Tennessee homeowners have numerous options for home insurance, which Reviews.com evaluated to find the best homeowners insurance companies in Tennessee. The reviews are based on average annual premiums, coverage options, discounts, third-party financial strength ratings through AM Best, and customer service ratings through the 2021 J.D. Power Claim Satisfaction study. As a result, the top providers based on our assessment are Auto-Owners, USAA, Erie, and Farmers.
Reviews.com utilized 2021 Quadrant Information Services data from Bankrate.com to evaluate the average home insurance premiums in Tennessee and a proprietary in-house methodology to compare discounts, coverage, and third-party evaluations. This methodology was used to rank and review the best home insurance in Tennessee to help you find the right coverage for your needs at the right price for your budget.
The 4 Best Homeowners Insurance Companies in Tennessee
- Auto-Owners: Best Overall
- USAA: Best for Military-Focused Coverage
- Erie: Cheapest Rates
- Farmers: Best for Discounts
Compare the Best Tennessee Homeowners Insurance Companies
| Average Annual Premiums* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | 2021 J.D. Power Claim Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|
| Pin Auto-Owners | $1,297 | A++ (Superior) | 900/1,000 | |
| Pin USAA | $1,175 | A++ (Superior) | 905/1,000** | |
| Pin Erie | $910 | A+ (Superior) | 869/1,000 | |
| Pin Farmers | $1,536 | A (Excellent) | 884/1,000 |
*Data from Bankrate.com Based on $250,000 dwelling coverage
**USAA not officially ranked by J.D. Power due to eligibility restrictions
Auto-Owners
Auto-Owners stands out as one of the best homeowners insurance in Tennessee for many reasons. Auto-Owners offers a solid lineup of coverage options for homeowners, including specialty coverage options such as extended personal property and equipment breakdown coverage. While the average annual premiums are competitive versus other carriers, the large number of discounts means Tennessee homeowners could possibly save more on their payments.
Best Overall
why we chose it
Why we chose it
Pros
- Variety of discounts
- High customer satisfaction ratings from J.D. Power
- Superior financial strength from AM Best
Cons
- No online quote option
- No claims processing online or through the app
- Not available nationwide
Discounts Available
- Multi-policy
- Green discount
- Advance quote
- Claims-free
ADD-ON COVERAGES
- Guaranteed home replacement cost
- Extended personal property
- Identity theft
- Equipment breakdown
Auto-Owners Insurance Review
USAA
USAA homeowners insurance is the best on our list for military-focused coverage because it offers coverage options and discounts tailored to military members, veterans, and their eligible family members. Customer satisfaction ratings are strong, with USAA earning the highest points among any provider with J.D. Power, though not officially ranked due to eligibility restrictions.
Best for Military-Focused Coverage
why we chose it
Why we chose it
Pros
- High customer satisfaction from J.D. Power
- Superior financial strength from AM Best
- Online and mobile claims service
Cons
- Few discounts
- Eligibility requirements
Discounts Available
- Claim-free
- Home security system
- Multi-policy
ADD-ON COVERAGES
- Earthquake
- Homesharing
USAA Insurance Review
Erie
Erie has the least expensive rates among the four providers reviewed. But the low rates don’t mean Erie skimps on coverage. The homeowners policies include the standard coverage options you would expect, including guaranteed replacement coverage. There are a few discounts and add-on coverages available, but each policy includes access to 24/7 claims service.
Best for Cheapest Rates
why we chose it
Why we chose it
Pros
- Least expensive average annual premiums
- 24/7 claims service
- Large local agent network
Cons
- Only available in 12 states
- Limited discounts and add-ons
- No online quote process
DISCOUNTS AVAILABLE
- Multi-policy
- Advanced quote
- Protective devices
ADD-ON COVERAGES
- Water backup and sump overflow
- Identify theft
- Personal liability
- Service line protection
Erie Insurance Reviews
Farmers
Farmers homeowners insurance has a unique approach to policies by offering three tiers of coverage. Tennessee homeowners can choose which coverage level fits both their needs and budget. No matter which plan is selected, homeowners have access to one of the most extensive range of discounts available, plus add-on coverage such as identity theft.
Best for Homeowners Discounts
why we chose it
Why we chose it
Pros
- Wide variety of discounts
- Tiered coverage system including unique specialty coverages
- Competitive pricing on premiums
Cons
- Slightly lower AM Best rating versus competitors
- Replacement coverage not automatically included
DISCOUNTS AVAILABLE
- Affinity group/occupation
- UL-approved roofing materials
- New home
- Green certifications
- Connected home
- Rent to own
ADD-ON COVERAGES
- Personal possessions
- Eco rebuild
- Contents replacement cost
- Identity theft
- Earthquake
- Flood
FARMERS INSURANCE REVIEW
Average Cost of Homeowners Insurance in Tennessee
The average cost of homeowners insurance in Tennessee is $1,625 per year for $250,000 in dwelling coverage. These rates are based on 2021 data from Bankrate.com, but your rates will vary based on factors, such as ZIP code, coverage options selected, and policy limits. The national average for homeowners insurance is $1,312 per year, which means Tennesseans generally pay higher rates than homeowners in many other states.
Average Annual Premiums from Homeowners Insurance Companies in Tennessee
Insurance premiums vary from one provider to another, and the cost depends on multiple factors. For example, the average annual premium with an Auto-Owners policy in Tennessee is $1,297, whereas State Farm averages $2,003. The averages are all based on $250,000 in dwelling coverage. This illustrates why it is critical to compare multiple quotes to avoid overpaying or missing out on important coverage options.
| Company | Average Annual Premium* |
| Erie | $910 |
| Allstate | $1,038 |
| USAA | $1,175 |
| Auto-Owners | $1,297 |
| Shelter | $1,428 |
| Tennessee Farmers Mutual | $1,532 |
| Farmers | $1,536 |
| Travelers | $1,681 |
| Grange | $1,904 |
| State Farm | $2,003 |
| Celina | $3,319 |
*Based on $250,000 dwelling coverage
Top 3 Most Expensive Companies for Tennessee Homeowners Insurance
- Celina: $3,319
- State Farm: $2,003
- Grange: $1,904
Top 3 Cheapest Companies for Tennessee Homeowners Insurance
- Erie: $910
- Allstate: $1,038
- USAA: $1,175
Tennessee Home Insurance Considerations:
Tennessee residents may experience extreme weather conditions, such as windstorms, hail, and heavy snow. In addition, flooding may also be a risk in Tennessee, which means flood insurance may need to seriously be considered or even required.
Tennessee is also more prone to tornadoes, which is one reason why adequate homeowners insurance is important. Whether a homeowner is concerned about flooding, tornadoes, or any other perils, homeowners in Tennessee should understand the risks and put a policy in place to help provide as much financial protection as possible.
Helpful Resources for Tennessee Homeowners
There is abundant information available to homeowners in Tennessee for choosing the right homeowners insurance coverages. We recommend reviewing the following state resources before finalizing your policy:
- Tennessee Emergency Management (TEMA)
- Homeowners Insurance Information
- A Consumer Guide to Homeowners Insurance
Frequently Asked Questions
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, as well as coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using 2021 J.D. Power Home Insurance Study ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
Sara Coleman is a personal finance freelance writer based in Charlotte, NC. A Journalism Major who studied at the University of Georgia, she enjoys creating approachable content. She’s written for sites such as WorkingMother, BetterYouMag, and SmartMoneyMamas. She loves spending time with her husband and 3 kids, and has a healthy obsession with coffee.
