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 protect your household finances by helping repair or replace the dwelling and its contents after covered losses. Reviews.com refreshed this guide using current statewide premium benchmarks and market conditions. We evaluated coverage options and discounts, third‑party financial strength insights from AM Best, and the latest service context from the J.D. Power U.S. Home Insurance Study. Based on this review and multiple 2024–2025 Tennessee roundups, strong picks to start quotes include Auto-Owners, USAA (for eligible members), Erie, and Farmers. 

Our analysis incorporates recent Tennessee rate research from Bankrate and corroborating statewide averages from NerdWallet, Policygenius, and ValuePenguin. These sources show Tennessee’s average homeowners premium now generally lands in the mid–$2,000s per year for a standard HO‑3 profile (commonly $250,000–$300,000 dwelling, $300,000 liability, $1,000 deductible). Recent increases reflect elevated insurance inflation tracked by the BLS household insurance CPI and a high pace of severe weather losses documented by NOAA. We used this framework to identify which carriers may be a fit for coverage, budget, and service expectations in Tennessee.

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

*Modeled statewide averages for Tennessee now typically range from about $2,200–$2,800 per year for a standard HO‑3 profile (often $250,000–$300,000 dwelling, $300,000 liability, $1,000 deductible); see Bankrate’s current Tennessee analysis.

**USAA not officially ranked by J.D. Power due to eligibility restrictions

Auto-Owners

Auto-Owners remains a strong Tennessee pick for service-minded shoppers who want robust coverage choices with an agent’s guidance. The company offers extended replacement cost options for the dwelling and endorsements like equipment breakdown and identity theft, along with common savings such as multi‑policy and claims‑free credits. In a market where statewide averages are in the mid–$2,000s, the ability to tailor wind/hail deductibles and add needed endorsements can materially affect your total cost and claim experience. Recent industry research shows overall homeowner satisfaction has been pressured by inflation and storm activity, so reviewing local agency support alongside price is prudent (J.D. Power 2024).

USAA

USAA offers homeowners coverage tailored to military members, veterans, and their eligible families, with consistently strong service reputation and robust digital claims tools. While USAA is not officially ranked in J.D. Power due to eligibility restrictions, it typically performs well in customer studies. In Tennessee’s current pricing environment (mid–$2,000s average for a standard profile), eligible households should include USAA in their quote set for potential bundle value and coverage breadth (Bankrate; J.D. Power 2024).

Erie

Erie is frequently competitive in markets it serves and is often cited as a lower‑priced option for standard profiles. Policies include core HO‑3 coverages and commonly available endorsements like water backup and service line in many areas (availability varies by state and program). Every policy includes 24/7 claims service. Given Tennessee’s exposure to wind, hail and heavy rainfall, consider endorsements that target loss drivers and review wind/hail deductible terms carefully (NAIC homeowners guide).

Farmers

Farmers offers three tiers of homeowners coverage so you can match limits and endorsements to your budget. Tennesseans can access one of the broadest discount menus (bundling, new home, green certifications, connected home) and useful add-ons like water backup, identity theft, contents replacement cost and optional earthquake coverage. In a state facing frequent severe convective storms, pay close attention to wind/hail deductible structure and any roof age settlement terms when comparing quotes (NAIC).

Average Cost of Homeowners Insurance in Tennessee

Recent statewide analyses indicate Tennessee homeowners pay roughly $2,200–$2,800 per year, on average, for a standard HO‑3 policy modeled around $250,000–$300,000 in dwelling coverage, $300,000 liability, and a $1,000 deductible. That places Tennessee above the U.S. average and reflects higher rebuilding costs and an active severe weather environment (Bankrate, 2025; NerdWallet). Elevated insurance inflation measured by the BLS insurance CPI and historically high counts of billion‑dollar disasters reported by NOAA are key drivers.

Average Annual Premiums from Homeowners Insurance Companies in Tennessee

Company pricing in Tennessee varies widely for the same profile, with differences of hundreds of dollars per year across insurers. To avoid overpaying, compare at least three to five quotes and review deductibles and endorsements (roof settlement, wind/hail deductibles, water backup) as closely as price. For current modeled averages and methodology, see Bankrate’s Tennessee analysis alongside ValuePenguin. Local carriers like Farm Bureau Insurance of Tennessee (membership required) are frequently cited among the more affordable options for typical profiles.

*Averages reflect modeled profiles; your rate will vary by dwelling limit, deductible, construction, credit, claims history, and location. For current statewide snapshots, see Bankrate and ValuePenguin.

Top 3 Most Expensive Companies for Tennessee Homeowners Insurance 

• Celina — often priced above the Tennessee average for standard profiles; verify with current quotes
• Grange — may trend higher than the state average depending on ZIP code and roof age; compare across multiple carriers
• State Farm — can be above average in higher-risk ZIP codes or with older roofs; pricing varies, so check multiple quotes

Top 3 Cheapest Companies for Tennessee Homeowners Insurance

• Farm Bureau Insurance of Tennessee (Tennessee Farmers) — frequently among the lowest for many profiles; membership required
• USAA — often competitively priced for eligible military members and families
• Auto-Owners — commonly competitive via independent agents; check bundle and claims‑free credits

Tennessee Home Insurance Considerations:

Tennessee faces severe convective storm risk (tornadoes, hail, straight-line wind) and heavy rainfall that can drive both wind/hail and water losses. NOAA reports a record number of U.S. billion‑dollar disasters in 2023 and a historically high pace in 2024, with multiple severe storm events affecting the Southeast, including Tennessee (NOAA).

Review wind/hail deductibles (percentage vs. flat), roof settlement terms (replacement cost vs. ACV for older roofs), and water‑damage endorsements. Consider adding water backup and service line coverage, and price separate flood insurance since standard homeowners policies exclude flood. Customer satisfaction across the industry has been under pressure amid inflation and storm activity, so compare service, complaint indices, and financial strength alongside price (J.D. Power 2024; NAIC Consumer Information Source).

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 companies using third‑party indicators for customer experience and financial stability and reviewed coverage/discount breadth to identify strong options for Tennessee households. We also incorporated current statewide pricing research and market conditions (inflation, severe weather losses) to ground comparisons.

To compare home insurance companies across the board, we considered the following factors:

• Customer Ratings — We referenced recent service context from J.D. Power’s latest U.S. Home Insurance Study.
• Coverage — Because coverage needs vary, we compared core protections and commonly available endorsements (e.g., water backup, service line, extended replacement cost), noting that availability differs by carrier and state (NAIC).
• Confidence — We looked at financial strength with an emphasis on AM Best’s Financial Strength Ratings and encourage readers to verify each carrier’s current rating and outlook at the AM Best rating center.
• Customer Experience — We recommend checking complaint indices and regulatory history via the NAIC Consumer Information Source and Tennessee DOI resources.

Rates reflect modeled statewide averages from Bankrate’s most recent Tennessee analysis and corroborating sources. These are sample estimates for comparison only; your quotes will differ.

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).

Keep Reading

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