Best and Cheapest Home Insurance Companies in Tennessee

Best and Cheapest Home Insurance Companies in Tennessee

Farm Bureau offers the most affordable homeowners insurance in Tennessee. A policy costs $1,266 per year, or $105 per month.

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Picking the right home insurance company means finding the company that has the right coverage options and great customer service, all for an affordable rate. We collected thousands of home insurance quotes and compared eight top insurers to find the best company for Tennessee homeowners.

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The cheapest options for homeowners insurance in Tennessee

Farm Bureau offers the lowest price to Tennessee homeowners — it's $821 per year cheaper than the statewide average.

The average cost of homeowners insurance in Tennessee is $2,087 per year. We collected hundreds of quotes from homeowners insurance companies across Tennessee in order to find the best price.

Graph showing the cost of home insurance in Tennessee by company

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Eligible homeowners can also find affordable rates from USAA. However, you must be a member of the military, veteran or eligible family member to purchase a policy.

Company
Annual
Monthly
Farm Bureau logo
Farm Bureau$1,266$105
Shelter logo
Shelter$1,283$107
USAA logo
USAA$1,419$118
Erie logo
Erie$1,444$120
Farmers logo
Farmers$1,463$122
State Farm logo
State Farm$1,482$123
Allstate logo
Allstate$1,907$159
Travelers logo
Travelers$6,437$536

Best for most people: Farm Bureau

Farm Bureau offers great insurance rates along with well-regarded customer service.
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The best homeowners insurance company in Tennessee and our recommendation for most people is Farm Bureau. It offers the best overall combination of affordable rates and strong customer service. Farm Bureau's average rate is $1,266 per year, which is 39% cheaper than the statewide average.

Farm Bureau also has excellent customer service reviews. The National Association of Insurance Commissioners (NAIC) has zero customer complaints on file for Farm Bureau in 2020, which is very uncommon for a company of its size. The biggest drawback of Farm Bureau is its website, which doesn't offer much information in terms of coverage options or available discounts.


Best major insurance company: State Farm

State Farm has powerful online tools for those who prefer to manage their home insurance policy on the web.
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State Farm is the best insurer for Tennessee homeowners who prefer the stability and name recognition of working with a national home insurer. The average home insurance rate at State Farm is 29% more affordable than the state average at $1,482 per year.

As one of the largest insurance companies in the U.S., State Farm offers a wide array of insurance coverages, including auto, umbrella, business, life and health insurance. It also has the best customer service scores of any national insurer in the state. According to the NAIC, it receives fewer complaints than average based on its size. State Farm also earned an above-average score on J.D. Power's annual home insurance customer satisfaction survey.


Best for military families: USAA

USAA has excellent customer service and benefits that will appeal to military service members, veterans and their families.
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Tennesseans with ties to the military should consider getting a home insurance quote from USAA. The company has some of the most competitive rates in the state — a policy costs $1,419 per year, which is $668 cheaper than the statewide average.

USAA has earned a reputation for providing excellent service to its customers, especially when it comes to claims. However, USAA is not available to everyone. Only two groups of people may apply: current or former members of the U.S. military and anyone whose immediate family member has been a customer of USAA in the past.

USAA provides a few unique benefits and perks to service members and their families. For example, it covers your personal property in war zones, which most insurers don't do. This means any belongings you bring with you while you're deployed are protected, no matter where you go.


Tennessee home insurance rates: City-by-city breakdown

Homeowners in Walnut Hill pay the cheapest home insurance rate in the state, $1,499 per year, while Wynnburg has the highest rates in Tennessee — $2,847 per year.

Homeowners insurance prices can vary greatly based on home cost and design, specific location and other factors, so the average rate in your city may be different than what you pay.

City
Average annual cost
Difference from state average (%)
Adams$2,039-2%
Adamsville$2,35113%
Afton$1,788-14%
Alamo$2,41015%
Alcoa$1,687-19%
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The best-reviewed homeowners insurance companies in Tennessee

Farm Bureau, Shelter and USAA all provide Tennessee homeowners with top-notch customer service.

When shopping for the right homeowners insurance company, it's important to consider the level of care and service you'll receive. Two factors we consider to determine the quality of an insurer's customer service are its NAIC complaint index, which shows the relative number of complaints a company has received compared to its size, and J.D. Power customer satisfaction scores.

Company
Rating
Farm Bureau
Shelter
USAA
Erie
State Farm
Farmers
Travelers
Allstate

Common homeowners insurance perils in Tennessee

The most common types of insurance perils in Tennessee are related to severe weather — specifically wind, hail and flooding. Tennessee is far enough inland that the state does not get hit by full-force hurricanes often; however, it's common for the outer bands of major storms to affect the eastern part of the state.

Tennessee is also subject to occasional winter storms, where conditions like snow and freezing rain can lead to insurance claims.

Is wind damage covered by insurance in Tennessee?

Wind damage is one of the most frequent causes of home insurance claims nationwide, and Tennessee is no different. Fortunately, wind damage is covered by most home insurance policies. This is true whether the damage is a broken window or shingles being blown off your roof.

Is flood damage covered by homeowners insurance?

Damage from flooding is generally not covered by homeowners insurance policies. If your home floods due to rain or an overflowing body of water, the only kind of insurance that will protect you is a stand-alone flood insurance policy.

You have two main options for flood insurance: a government-sponsored policy through the National Flood Insurance Program (NFIP), or a policy from a private insurance company. Policies backed by the NFIP have the same coverages and rates no matter which company you buy from, while the details of private policies will vary by company.

Are sinkholes covered by home insurance?

Sinkholes are usually not covered by home insurance policies. In Tennessee, home insurance companies are required to offer separate sinkhole coverage for an additional cost, which protects your dwelling and personal property.

Sinkhole coverage can be costly in high-risk areas, and companies may ask to inspect your property before providing a quote.


Frequently asked questions

How much is flood insurance in TN?

According to the NFIP, flood insurance in Tennessee costs $988 per year, on average. The typical policy includes $267,000 worth of coverage.

How much is home insurance in Tennessee?

The average cost of homeowners insurance in Tennessee is $2,087 per year or $174 per month.

Why is homeowners insurance so expensive in Tennessee?

Home insurance in Tennessee can be expensive because of the state's exposure to severe weather events like hail, tornadoes and sinkholes. Homeowners insurance is $592 more expensive per year in Tennessee than the national average, which is $1,495.

How much is homeowners insurance in Nashville?

The average price for home insurance in Nashville is $1,948 per year, which is 7% less than the state average. In comparison, homeowners in Memphis can expect to pay $2,536 — 21% more than the average rate in Tennessee.


Methodology

For our analysis, we collected insurance quotes from eight of the top insurance companies in Tennessee for every ZIP code in the state. We based our quotes on a home built in 1988 with $279,100 of dwelling coverage, which represents the median year homes were built and the median home value in the state. The companies we surveyed are:

  • Allstate
  • Erie
  • Farm Bureau
  • Farmers
  • Shelter
  • State Farm
  • Travelers
  • USAA

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Insurer service ratings are based on National Association of Insurance Commissioners (NAIC) complaint index scores, J.D. Power's 2021 home insurance customer satisfaction survey rankings and our own ValuePenguin editor's ratings.

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.