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Tennessee homes range from historic farmhouses to cozy urban bungalows. Our top Tennessee home insurance providers offer coverage for all types of homes. Foremost Insurance writes policies for hard to insure homes, Allstate covers all types of dwellings, and Shelter Mutual offers flexible policies with varying levels of coverage. And some of the companies that performed well in Tennessee, are also among the best homeowners insurance in the U.S.
To find the best homeowners insurance companies in Tennessee, we analyzed insurers’ market share and compared their coverages, consumer ratings, discounts, financial ratings, and prices.
The 5 Best Homeowners Insurance Companies in Tennessee
Compare Tennessee’s Top Insurance Companies
| Average Price | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction* | |
| Allstate | $1,053 | A+ | 829 |
| Auto-Owners Insurance | $1,123 | A++ | 843 |
| Erie Insurance | $971 | A+ | 839 |
| Foremost Insurance | $1,469 | A | N/A |
| Shelter Mutual Insurance | $1,392 | A | N/A |
*Based on a 1,000-point scale.
Allstate
Based on our research, Allstate offers the second lowest home insurance rates in Tennessee. Allstate’s standard policies include all the basic coverages you expect from a major home insurance provider and its optional coverages help further protect your business property and valuable items such as musical instruments and sports equipment.
Affordable Premiums
Why we chose it
Why we chose it
Pros
- Diverse discount opportunities
- Informative website and digital tools
- Above-average customer service
Cons
- NAIC complaint index high
Discounts available
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on Allstate:
- Allstate homeowners insurance review
- Allstate renters insurance review
- Allstate auto insurance review
- Allstate motorcycle insurance review
Auto-Owners Insurance
Although Auto-Owners Insurance doesn’t offer the cheapest home insurance rates, it does provide a well-rounded selection of standard and optional coverages to protect Tennessee homeowners. The provider’s optional coverages help protect your most valuable possessions, cover identity theft expenses, and help pay for damages caused by dreaded sewer disasters.
Great Optional Coverages
Why we chose it
Why we chose it
Pros
- Customer satisfaction rating
- Sound financial ratings
- Good selection of optional coverages
Cons
- Higher rates than some carriers
- Not available in some states
Discounts available
- Multi-policy discount
- Green discount
- Automatic backup generator discount
Unique features
Auto-Owners’ optional coverages help protect your home and possessions. Guaranteed home replacement cost coverage helps cover the cost of rebuilding your home when your dwelling coverage falls short and the ordinance of law add-on helps bring your home up to code following a covered loss.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on Auto-Owners Insurance:
Erie Insurance
Erie Insurance backs its homeowners policies with good financial and customer satisfaction ratings. Although the carrier offers few home insurance discounts, you can save up to 25% when you buy multiple policies. Some standard Erie homeowners policies include guaranteed dwelling replacement cost coverage, along with $500 in pet coverage and personal liability that covers you even when you’re away from home.
Great Standard Policies
Why we chose it
Why we chose it
Pros
- Customer satisfaction ratings
- Low rates
- Multi-policy discounts from 16% to 25%
Cons
- Limited availability
- Not many discounts
Discounts available
- 16% to 25% multi-policy discount
- Safety and security devices discount
- Advanced quote discount
Unique features
Erie’s standard home insurance policies go the extra mile by providing $500 in pet coverage and liability coverage that protects you even when you vacation abroad. And Erie’s guaranteed replacement cost dwelling coverage pays to rebuild your house based on current construction costs, not your home’s actual cash value.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on Erie Insurance:
Foremost Insurance
Foremost didn’t make the cut in J.D. Power’s 2020 U.S. Home Insurance Study and has good, but not exceptional financial ratings. However, Foremost excels by covering property and homeowners that other providers turn down. Foremost specializes in non-standard home insurance coverage, for older homes with a market value below rebuild costs and for homeowners with credit problems.
Non-standard Coverage
Why we chose it
Why we chose it
Pros
- Writes policies for homes that don’t qualify for standard coverage
- Accepts applicants with credit problems
Cons
- Customer satisfaction
- Good, but not great financial strength
Available discounts
- None
Unique features
Foremost’s non-standard homeowners policies can cover homes that have a lower market value than their rebuild cost, like older or historic homes. The provider also covers homeowners who’ve been turned down because they have more than one dog and folks with credit issues.
**Some providers don’t have enough third-party ratings to calculate a score.
Further Reading on Foremost Insurance:
Shelter Mutual Insurance
Shelter Mutual Insurance has earned average financial ratings and didn’t rank in the 2020 J.D. Power Home Insurance Study. But Shelter stands out in the crowd with its flexible home insurance policies. Shelter offers two levels of homeowners coverage. A Shelter home insurance policy provides maximum protection, while a dwelling insurance policy gives you the option to add covered perils based on your needs.
Flexible Homeowners Policies
Why we chose it
Why we chose it
Pros
- Flexible coverage options
- Claims-free discount
- Inflation protection coverage
Cons
- Customer satisfaction ratings
- Average financial strength
Discounts available
- Claim-free discount
- New home discount
- Protective devices discount
Unique features
Shelter’s flexible homeowners policies enable you to choose protection against a comprehensive set of perils or only the ones you consider the greatest threat to your home. Shelter also offers a large selection of optional coverages, which can help offset the cost of fire department charges, cover fraudulent credit card charges, pay for debris removal, and much more.
**Some providers don’t have enough third-party ratings to calculate a score.
Average Cost of Homeowners Insurance in Tennessee
Based on 2019 National Association of Insurance Commissioners data, Tennesseans pay an average annual home insurance premium of $1,196, slightly below the $1,211 national average. Mississippi homeowners pay significantly more for homeowners insurance, around $1,537 on average, while North Carolinians pay more than $100 per year less than Tennesseans.
Home Insurance Add-Ons That Will Further Protect You
Most standard home insurance policies don’t cover earthquake and flood damage, risks that many Tennessee homeowners may face. The United States Geological Survey projects that Memphis, which lies on the New Madrid fault, faces a 25% to 40% chance of experiencing a magnitude 6 or greater earthquake in the next few decades.
Tennessee often experiences flooding due to heavy rainfall, levee failures, and rivers overflowing their banks. Heavy rainfall inundated Middle and West Tennessee in 2010, killing 26 people and causing an estimated $2 billion in damages, according to the National Weather Service.
If you live near the New Madrid fault line or in an area prone to flooding, speak with your insurance agent about adding earthquake or flood insurance to your homeowners policy.
The Cheapest Homeowner Insurance Companies in Tennessee
| Homeowners Insurance Companies | Average Annual Premium |
| Erie Insurance | $971 |
| Allstate | $1,053 |
| USAA | $1,098 |
| Auto-Owners Insurance | $1,123 |
| Shelter Mutual Insurance Company | $1,392 |
| Foremost Insurance | $1,469 |
| Tennessee Farmers Mutual Insurance Company | $1,517 |
| State Farm | $1,805 |
| Celina Mutual Insurance Company | $2,107 |
| Average Cost Across Insurance Companies | $1,392 |
Cost of Homeowners Insurance by Age of Home
| Age of Home (years) | Sample Annual Premium |
| 5 | $1,392 |
| 20 | $1,857 |
| 35 | $1,889 |
| 50 | $1,890 |
| Average Across Age of Home Tiers | $1,757 |
Top 3 Cheapest Homeowners Insurance Companies in Tennessee
- Erie Insurance – $971
- Allstate – $1,053a
- USAA – $1,098
Top 3 Most Expensive Homeowners Insurance Companies in Tennessee
- Celina Mutual Insurance Company – $2,107
- State Farm – $1,805
- Tennessee Farmers Mutual Insurance Company – $1,517
Helpful Resources for Tennessee Homeowners
The Tennessee Department of Commerce and Insurance publishes annual data on rate changes among major home insurance providers, enabling you to compare how well your insurer competes with other carriers.
Meanwhile, the federally funded Tennessee Weatherization Assistance Program helps cover the cost of weatherizing the homes of elderly and low income homeowners through a network of nearly 20 nonprofit statewide agencies. Some weatherization improvements can help lower your home insurance price tag, so it will be worth checking if you qualify for the program.
And for information about obtaining home loans, making emergency home repairs, preventing foreclosure, and much more, the Tennessee Housing Development Agency’s website provides a wealth of educational resources for homeowners.
Homeowners Insurance FAQ
Is homeowners insurance required in Tennessee?
Tennessee law doesn’t require you to buy home insurance. However, if you don’t purchase a policy, you’ll have to pay out of pocket following a disaster. Your mortgage lender will probably require you to keep the property insured for the duration of the loan. To help you understand the process, check our guide to buying homeowners insurance.
What is the cheapest homeowners insurance in Tennessee?
Based on our research, Erie Insurance offers the most affordable home insurance in Tennessee, with average annual premiums running around $971. This is an average calculated using a standard profile, but insurance premiums are highly personalized and your cost will vary depending on your unique needs and circumstances. Factors like the age of the house, crime rates in the neighborhood, protective systems, and others impact what you end up paying for your home insurance. Cost is just one factor to consider when shopping for homeowners insurance. Look for an insurer that can offer the best combination of price, coverages, and discounts, and get multiple quotes to choose what fits your needs.
Does home insurance cover earthquake damage?
Most standard homeowners policies don’t pay for damage caused by earthquakes. If you live in West Tennessee, on or near the New Madrid fault, talk with your insurer about adding earthquake coverage to your home insurance policy.
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best companies. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using JD Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- 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.
About the Authors
Michael Evans is a freelance finance writer. His work has been published by Bankrate, Fox Business, The Guardian and Yahoo Finance.
