The Best (And Cheapest) Tennessee Homeowners Insurance Companies
Find the Cheapest Homeowners Insurance Quotes in Your Area
No single insurance company is best for every Tennessee homeowner. But based on customer service scores, we recommend Farm Bureau Insurance of Tennessee, Travelers and USAA. We've also included our picks for the top companies in the state for customers looking for specific types of service.
If you're looking for the most affordable home insurance, we looked at data on Tennessee home insurance prices. Our research finds that the average cost of homeowners insurance in Tennessee is $1,716 per year or $143 per month.
We also evaluated insurance quotes in 70 cities across Tennessee to determine which cities had the most expensive and cheapest annual home insurance costs. Across these cities, we found that Farmers Insurance offers the cheapest average rates. Read more about our findings below, or use our toolbar above to find the best homeowners insurance quotes in your area.
Best homeowners insurance companies in Tennessee
- Tennessee Farmers Mutual
- Travelers
- USAA
You could be a resident of Nashville, Memphis or any other part of Tennessee; the best homeowners insurance provider for you will have the right balance of coverages, value, stability and customer service. This section explores how Tennessee home insurance companies rate when it comes to customer service.
Using customer complaint data, we found the top-rated homeowners insurance companies in Tennessee are Tennessee Farm Bureau, Travelers and USAA. The worst in the state are Liberty Mutual, Farmers and Nationwide.
Tennessee residents are generally satisfied with the biggest insurers in the state. All of the top 10 providers have a customer complaint ratio below the national median of 1.0, indicating better-than-average service.
| Customer service rank | Company | Market share | Complaint ratio |
|---|---|---|---|
| 1 | Tennessee Farm Bureau | 19.5% | 0.1 |
| 2 | Travelers | 3.4% | 0.18 |
| 3 | USAA | 6.3% | 0.2 |
| 4 | State Farm | 24.1% | 0.26 |
| 5 | Erie Insurance | 4.1% | 0.27 |
| 6 | Auto-Owners | 1.9% | 0.28 |
| 7 (tie) | Allstate | 7.4% | 0.41 |
| 7 (tie) | Nationwide | 4.1% | 0.41 |
| 9 | Farmers | 4% | 0.52 |
| 10 | Liberty Mutual | 7.7% | 0.69 |
Find the Cheapest Homeowners Insurance Quotes in Your Area
Tennessee homeowners insurance company reviews
State Farm, Tennessee Farmers Mutual Insurance Co. and Allstate are the three largest insurance companies in Tennessee. We analyzed these top three insurers to decide which customers would be a good fit for each company. All three companies are financially sound, as they're rated between A and A++ by A.M. Best for financial strength.
State Farm: Best for wide range of coverage options
The largest home insurer in the state, State Farm, writes almost a quarter of home insurance policies in Tennessee. State Farm stands out for its numerous coverages and convenient technology experience. State Farm's coverage options range from the typical, such as water and sewer backup coverage, to the unique, such as mine subsidence coverage. Ultimately, out of the insurance companies we considered, State Farm had the most extensive lists of optional coverages, meaning policyholders can typically find coverage for specific property or liability risks.
In addition to offering a wide variety of coverage options, Tennessee's State Farm also has the fourth-lowest complaint ratio of the insurers in our study, indicating a strong service experience.
Tennessee Farm Bureau: Best for customer service
Tennessee Farmers Mutual, widely known as Tennessee Farm Bureau, is a local insurance company founded under the Tennessee Farm Bureau in 1948. With at least one office in every county in the state, the Farm Bureau is dedicated to providing excellent local service. These efforts are reflected in its low complaint ratio of 0.10—the best in the state, making Tennessee Farm Bureau a great choice if you want excellent service.
Online consumer reviews indicate that Farm Bureau agents are very accessible and helpful in answering questions. However, unlike many of its competitors, Tennessee Farmers Mutual does not have an online quote tool, so you'll have to talk with an insurance agent to get rates.
One downside is that only members of the Farm Bureau can purchase insurance from Tennessee Farmers Mutual. However, the annual fee of $30 a year provides you access to many discounts and benefits, such as hotel and car rental discounts.
Liberty Mutual: Best for policy discounts
One of the nation's largest home insurers, Liberty Mutual provides a wide range of optional coverages to fit your needs. You can browse these using Liberty's intuitive quote tool, which makes it simple to customize your policy. However, Liberty stands out with its wide range of discounts that can help you lower your premium.
Like most home insurance companies, Liberty Mutual has multipolicy and claims-free discounts. But it also offers other unique discounts that are easy to qualify for, such as the preferred payment discount that allows you to save by using its monthly electronic funds transfer payment option.
One downside to Liberty Mutual is its relatively high complaint ratio, which is among the highest out of the 10 largest insurance companies in Tennessee. So although Liberty Mutual provides lots of discounts and a convenient experience, it's best to compare other options as well.
Cheapest home insurance companies in Tennessee
We gathered quotes for our sample home across 70 cities from Farmers, Nationwide, State Farm and Allstate. Quotes from each company were averaged to find which insurance companies had the cheapest home insurance rates in Tennessee. Of the companies surveyed, we found that, on average, Farmers offers the best home insurance rates for the state of Tennessee at $1,084 per year. The graph and table below show the average annual costs to insure our sample home by company.
| Insurance company | Average quote |
|---|---|
| Farmers | $1,084 |
| Nationwide | $1,321 |
| Tennessee state average | $1,716 |
| State Farm | $2,074 |
| Allstate | $2,385 |
Homeowners insurance rates in Tennessee's largest cities
We also evaluated homeowners insurance rates across the 10 largest cities in Tennessee, using the following control variables: the age of the home, square footage, replacement cost, construction type and roof type. We found that, on average, the homeowners in the 10 largest cities pay 9% less than the rest of the state for home insurance. The average cost for homeowners insurance in Tennessee's 10 largest cities is $1,567 per year.
The table below shows how much Tennessee residents pay, on average, in the 10 largest cities. Among this group, Knoxville had the cheapest home insurance costs while Jackson had the most expensive.
| City | Average quote |
|---|---|
| Knoxville | $1,236 |
| Johnson City | $1,268 |
| Nashville | $1,407 |
| Clarksville | $1,451 |
| Chattanooga | $1,461 |
| Franklin | $1,479 |
| Tennessee state average | $1,716 |
| Memphis | $1,724 |
| Murfreesboro | $1,768 |
| Bartlett | $1,845 |
| Jackson | $2,030 |
Least expensive homeowners insurance in Tennessee: by city
The graph and table below show the five most affordable cities for homeowners insurance in our study. The cities are listed in order of mean price, starting with the lowest annual home insurance quote and counting up. We found that Morristown is the cheapest city in Tennessee for homeowners insurance. On average, Morristown residents pay $1,192 annually, which is 31% less than the state average.
| City | Average quote |
|---|---|
| Morristown | $1,192 |
| Kingsport | $1,212 |
| Seymour | $1,227 |
| Knoxville | $1,236 |
| Rogersville | $1,261 |
| Tennessee state average | $1,716 |
Most expensive homeowners insurance in Tennessee: by city
This graph and table below show the five most expensive cities for homeowners insurance in our study. The cities are listed in order of price, starting with the highest average rate and descending. The most expensive city for homeowners insurance in Tennessee was Woodbury: $2,453 on average, which is 43% greater than the state average.
| City | Average quote |
|---|---|
| Tennessee state average | $1,716 |
| Tiptonville | $2,233 |
| Linden | $2,243 |
| Lafayette | $2,262 |
| Paris | $2,276 |
| Woodbury | $2,453 |
What does Tennessee homeowners insurance cover?
In terms of core coverages, Tennessee homeowners insurance is the same as it is in any other state. A standard homeowners insurance policy covers damage to your dwelling and personal property, personal liability expenses and loss of use.
Dwelling coverage will reimburse you if the structure of your home is damaged in a covered peril. For instance, if a fire burns your walls and floors, your insurance company pays for repairs up to your policy limits. You should buy a home insurance policy with high enough dwelling coverage to completely rebuild your home in the unlikely event of a total loss.
Home insurance policies also have personal property coverage, allowing homeowners to cover the costs of damage or theft of their personal belongings. In other words, it covers the things you keep within the structure of your home. Tennessee residents can protect anything from their clothes to their home entertainment system with this coverage. Limits are usually set as a percentage of dwelling coverage limits, though this can often be adjusted.
Personal liability coverage guards homeowners against the cost of bodily injury or property damage for which you are held legally liable. It covers the costs of legal defense, personal injury and property damage up to policy limits, generally starting at $100,000.
Additional living expenses (ALE) coverage, or loss of use coverage, pays for expenses if you can't stay in your home after a covered event. For example, if severe wind damage leaves your house uninhabitable, ALE will cover expenses such as hotel stays and increased transportation costs.
Is homeowners insurance mandatory in Tennessee?
Just as in any other state, there is no law or regulation in Tennessee requiring you to buy a homeowners insurance policy. However, if you took out a mortgage to buy your home, your lender will require you to have a home insurance policy as collateral against damage to your residence. Most people borrow to finance their home purchase, making homeowners insurance practically required.
However, if you paid for your home in cash, or you've finished paying off your mortgage, a homeowners insurance policy won't be necessary. This doesn't mean you shouldn't have one, as home insurance can protect you against the risk of your home being damaged or destroyed in covered events.
How much is flood insurance in Tennessee? Is flood damage covered by homeowners insurance?
The average cost of flood insurance in Tennessee is $861 per year. Homeowners should definitely consider purchasing a policy, as most home insurance policies will not cover them for dwelling and personal property damage caused by a flood.
Tennessee residents can find the state's flood zones at the FEMA Flood Map Service Center. Lenders will automatically require flood insurance for homes in high-risk flood zones. Even if your lender doesn't require flood insurance or if your home isn't in a flood zone, we highly recommend you purchase flood insurance. More than 20% of flood insurance claims come from people in moderate- to low-risk zones.
Methodology
We studied 70 cities, spread out across the state of Tennessee. The sample home was built in the year 2000, measured 2,000 square feet across two stories and cost $200,000. Quotes for this home were obtained from Allstate, Nationwide, State Farm and Farmers, and then rates were averaged for each city. An alphabetical list of all cities in the analysis is included below, along with the average annual cost of home insurance for the benchmark property.
We measured customer satisfaction by a complaint ratio collected from the National Association of Insurance Commissioners. Customer complaints are weighted by market share, so the number of complaints is adjusted relative to the size of a company, with a median score of 1.0. The complaint ratio is drawn from the largest individual company under an insurance group that is active in the state. Only the top 10 insurance groups in the state, by market share, were included in the customer satisfaction analysis.
| Rank | City | Average insurance rate | Cost compared to state average |
|---|---|---|---|
| 15 | Ashland-City | $1,385 | -19% |
| 30 | Athens | $1,675 | -2% |
| 42 | Bartlett | $1,845 | 8% |
| 16 | Blountville | $1,387 | -19% |
| 49 | Carthage | $1,993 | 16% |
| 20 | Chattanooga | $1,461 | -15% |
| 19 | Clarksville | $1,451 | -15% |
| 7 | Cleveland | $1,272 | -26% |
| 36 | Columbia | $1,746 | 2% |
| 22 | Cookeville | $1,464 | -15% |
| 44 | Covington | $1,870 | 9% |
| 43 | Crossville | $1,859 | 8% |
| 46 | Dayton | $1,905 | 11% |
| 45 | Dickson | $1,872 | 9% |
| 52 | Dresden | $2,077 | 21% |
| 63 | Dyersburg | $2,202 | 28% |
| 56 | Eagleville | $2,097 | 22% |
| 9 | Elizabethton | $1,282 | -25% |
| 11 | Erwin | $1,359 | -21% |
| 38 | Fayetteville | $1,793 | 4% |
| 23 | Franklin | $1,479 | -14% |
| 39 | Germantown | $1,800 | 5% |
| 13 | Greeneville | $1,362 | -21% |
| 61 | Huntingdon | $2,143 | 25% |
| 51 | Jackson | $2,030 | 18% |
| 8 | Jefferson City | $1,276 | -26% |
| 6 | Johnson City | $1,268 | -26% |
| 21 | Jonesborough | $1,464 | -15% |
| 2 | Kingsport | $1,212 | -29% |
| 25 | Kingston | $1,534 | -11% |
| 4 | Knoxville | $1,236 | -28% |
| 26 | LaFollette | $1,556 | -9% |
| 68 | Lafayette | $2,262 | 32% |
| 31 | Lebanon | $1,678 | -2% |
| 10 | Lenoir City | $1,288 | -25% |
| 50 | Lewisburg | $1,994 | 16% |
| 67 | Linden | $2,243 | 31% |
| 65 | Livingston | $2,205 | 28% |
| 55 | Lynchburg | $2,096 | 22% |
| 47 | Madisonville | $1,941 | 13% |
| 59 | Manchester | $2,124 | 24% |
| 53 | Martin | $2,083 | 21% |
| 12 | Maryville | $1,361 | -21% |
| 57 | McMinnville | $2,104 | 23% |
| 34 | Memphis | $1,724 | 0% |
| 48 | Milan | $1,944 | 13% |
| 1 | Morristown | $1,192 | -31% |
| 24 | Mount-Juliet | $1,496 | -13% |
| 27 | Mountain-City | $1,611 | -6% |
| 37 | Murfreesboro | $1,768 | 3% |
| 18 | Nashville | $1,407 | -18% |
| 35 | Newport | $1,725 | 0% |
| 17 | Oak Ridge | $1,406 | -18% |
| 69 | Paris | $2,276 | 33% |
| 5 | Rogersville | $1,261 | -27% |
| 58 | Savannah | $2,111 | 23% |
| 54 | Selmer | $2,094 | 22% |
| 14 | Sevierville | $1,365 | -20% |
| 3 | Seymour | $1,227 | -29% |
| 40 | Shelbyville | $1,803 | 5% |
| 41 | Smithville | $1,831 | 7% |
| 33 | Sparta | $1,714 | 0% |
| 29 | Springfield | $1,673 | -3% |
| 28 | Sweetwater | $1,639 | -4% |
| 66 | Tiptonville | $2,233 | 30% |
| 64 | Tracy City | $2,203 | 28% |
| 60 | Tullahoma | $2,132 | 24% |
| 62 | Union City | $2,148 | 25% |
| 32 | Winchester | $1,701 | -1% |
| 70 | Woodbury | $2,453 | 43% |
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.