Based on factors such as market share, coverage policies, and discount opportunities, the best homeowners insurance company in Tennessee is Auto-Owners Insurance. However, it is closely followed by Erie Insurance, Shelter, Foremost, and Allstate.
If you’re in the market for homeowners insurance in Tennessee, here’s what you need to know.
The 5 Best Homeowners Insurance Companies in Tennessee
|Auto-Owners Insurance||Erie Insurance||Shelter Mutual Insurance Company||Foremost Insurance||Allstate|
|AM Best Financial Strength Rating||A++||A+||A||A||A+|
|J.D. Power Overall Customer Satisfaction Score||4/5||3/5||4/5||NA||3/5|
|Online Quote Tool||✓||X||X||X||✓|
|Compare rates||Compare rates||Compare rates||Compare rates||Compare rates|
Average Cost of Homeowners Insurance in Tennessee
According to the Insurance Information Institute, the average cost of homeowners insurance in Tennessee is $1,196, making it the 21st most expensive state for homeowners insurance.
This is actually lower than the national average, which is currently around $1,211.
You could pay less or more than both the Tennessee average and the national average depending on a series of factors:
- Age of home
- Size of home
- Condition of home
- Location of home
- Credit score
Home Insurance Add-ons That Will Further Protect You
Parts of Tennessee have been subject to flooding recently, so it may be important for you to purchase flood insurance. However, flood insurance can only be purchased through the National Flood Insurance Program (NFIP). To learn more, visit floodsmart.gov.
To see if FEMA considers your home to be in a flood-prone area, click here.
Homeowners insurance providers in Tennessee are required to offer sinkhole coverage. For much of the nation, sinkholes are a pretty rare event, but it’s more common in Tennessee thanks to limestone in the soil, which is quite porous and prone to change. Definitely check with your prospective insurance provider about the cost of adding this coverage!
Though not considered to be in tornado alley, parts of Tennessee are prone to tornadoes every year (especially mid Tennessee).
If you live in an area hit by tornadoes every year, definitely find a carrier that offers tornado coverage. Look for “Coverage for Tornado Damage Caused by Wind.”
Tennessee is in two seismic zones: East Tennessee and New Madrid. Because of this, experts are predicting a major earthquake to hit Tennessee in the not so distant future.
Earthquake coverage is recommended for both the eastern and western parts of Tennessee, as it is quite common to have earthquakes in these regions (click here see an earthquake summary map).
A note on wildfires:
We all remember the 2016 Great Smoky Mountains wildfires. Though insurance companies don’t have separate wildfire coverage, it’s important to make sure your entire home and all of your possessions are fully protected. If you live near the areas affected by the 2016 wildfire, strongly consider purchasing a higher level of security and be sure to take extra precautions for you and your loved ones.
Helpful Resources for Tennessee Homeowners
- Tips on Homeowners Insurance
- Homeowners Policies Rate Changes
- Consumer Guide for Homeowner Insurance
- Consumer Guide for Earthquake Insurance
- Homeowners Insurance Information
Things to consider
If you’re just buying a home and have yet to close, you will need to have an insurer lined up for your lender before you can close. If you’re paying all cash, you technically don’t have to have homeowners insurance, but it is highly recommended!
If you’re switching insurers and you are still making mortgage payments, you will need to call your lender and escrow account and inform them that you will be changing providers. The most important thing is that there aren’t any gaps in coverage.
What do you need to apply for homeowners insurance?
Information. The insurance company is going to want to know specific details about you and your home. Because of this, we highly recommend having your inspection report handy, as your inspector will have thoroughly answered many of the questions the insurer is going to ask.
To determine the best homeowners insurance company in Tennessee we first started by analyzing the largest companies operating in Tennessee. We then further narrowed down our list to the ‘best companies’ by looking at AM Best and J.D. Power ratings, the amount of available discounts and policies, additional coverage options, as well as how tech friendly the company currently is. Looking at each company with these factors in mind, we believe the following insurance companies deserve your business.
Best Tennessee Homeowners Insurance Companies
- High customer satisfaction
- Bundle with auto insurance and save
- Good number of policies from which to choose
- Claims processing time can vary
Auto-Owners Insurance is one of the best homeowners insurance companies on the market today. They offer a good number of policies from which to choose, and they give their members multiple opportunities to save on their premium— including a discount for bundling with auto insurance.
The only con with Auto-Owners is that some claims it processes quickly, while others not so much. This has caused some members a bit of frustration. Overall, however, customers are very happy with this company compared to other providers.
- Multiple discount options
- Very few customer complaints
- Base policy protects against theft or loss
- Lower than average premiums
- No mobile app
Erie Insurance is a solid insurance company that also happens to have some of the lowest premiums in the industry. You won’t find many customer complaints online, but you will find numerous opportunities to lower your premium.
Another great thing about Erie homeowners insurance that even the base policy protects your home against theft or loss.
One con, which may or may not matter to you, is that Erie doesn’t have a mobile app yet. You’ll have to either go online or call to file a claim.
Shelter Mutual Insurance Company
- Easy to receive discounts
- Multiple coverage options
- Consistently well reviewed by independent sites
- Some customers report the claims process takes longer than usual
Shelter Mutual Insurance appears to have high customer satisfaction as reflected in its A+ rating with the Better Business Bureau, and yearly ratings with both AM Best and J.D. Power.The company offers discounts for things you were going to do anyway, such as installing a smoke detector.
Scroll through online reviews and you’ll notice that a frequent complaint customers have with Shelter is the length of time it takes to settle a claim. For many, it takes a little too long.
- Will insure older homes in need of TLC
- Insures people with bad credit
- Not suited for newer homes
Foremost Insurance is a unique company in that it will insure homes that are in visible need of a little work. It will also insure anyone who has a substandard credit score, or who has a history of filing a lot of claims.
A drawback to Foremost is that it really isn’t suited for new homes. It prefers to work with homeowners living in older homes.
- Extensive discount opportunities
- Numerous policy options
- Strong AM Best rating
- Average customer satisfaction ratings
Allstate is a large insurance provider that is able to offer its members a variety of policy options as well as numerous discount opportunities. It also has a strong AM Best rating which all but ensures it’s going to be around for a while.
One con with Allstate is that it frequently receives ‘average’ ratings for its customer service. For such a large and successful company, this is surprising.
The Cheapest Homeowners Insurance Companies In Tennessee
|Homeowners Insurance Companies||Average Annual Premium|
|Shelter Mutual Insurance Company||$1,392|
|Tennessee Farmers Mutual Insurance Company||$1,517|
|Celina Mutual Insurance Company||$2,107|
|Average Cost Across Insurance Companies||$1,392|
Homeowners Insurance by Age of Home
|Age of Home Tier||Average Annual Premium|
|Average Across Age of Home Tiers||$1,757|
Quadrant home insurance rate data as of 12/01/2019.
These rates are a sample set meant only for general comparison. Your own premium will vary.
Top 3 Cheapest Homeowners Insurance Companies in Tennessee
- Erie Insurance – $971
- Allstate – $1,053
- 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
The cheapest insurance provider in Tennessee is currently Erie Insurance, whereas the most expensive is Celina Mutual Insurance Company; however, these numbers are based off of averages and do not necessarily represent what you would pay if you were to use them for your Homeowners insurance needs. You might pay less or more than the numbers you see above. To get a personalized quote, you will need to contact each company directly.
Homeowners Insurance FAQ
It is not illegal if you don’t have homeowners insurance in Tennessee, but your lender will require you to have it as long as you are making payments.
The cheapest insurance in Tennessee is currently Erie Insurance.
The cheapest providers in Tennessee are Erie Insurance, Allstate, USAA, and Auto-Owners Insurance.