Jane Dotson
The cost of homeowners insurance in Tennessee varies depending on factors such as location, age and building materials of the home, credit score, insurance history, and other factors. According to a 2020 report by the National Association of Insurance Commissioners (NAIC), the average premium for home insurance coverage in Tennessee is $1,296 per year, slightly lower than the national average of $1,311. However, insurance costs have likely increased since then. More recent data from 2025 suggests that the average annual cost of home insurance in Tennessee is $2,850, which is 35% more than the national average of $2,110 for the same year.
| Characteristics | Values |
|---|---|
| Average annual cost of home insurance in Tennessee | $2,850 |
| Average annual cost of home insurance in the US | $2,110 |
| Average annual cost of home insurance in Nashville | $2,840 |
| Average annual cost of home insurance in Memphis | $3,395 |
| Average annual cost of home insurance with $300,000 dwelling coverage in the US | $2,466 |
| Average annual cost of home insurance with $300,000 dwelling coverage in Tennessee | $2,534 |
| Average annual cost of home insurance for those with poor credit history in Tennessee | $6,060 |
| Average annual cost of cheapest home insurance in the US | $2,055 |
| Average annual cost of home insurance in the most expensive state | $4,799 |
| Average annual cost of home insurance in the least expensive state | $601 |
| Average premium for home insurance coverage in Tennessee (as per the 2020 report by NAIC) | $1,296 |
| Average premium for home insurance coverage in the US (as per the 2020 report by NAIC) | $1,311 |
| Home insurance coverage | Damage to the home due to a covered event, such as a fire, windstorm, lightning or hail |
| Not covered in home insurance coverage | Floods, earthquakes, and damage caused by floods |
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What You'll Learn
Home insurance in Tennessee: what's covered?
The cost of home insurance in Tennessee varies depending on factors such as the value and age of the home, the amount of personal property coverage, the deductible, and the risks specific to the area. The average yearly premium for homeowners insurance in Tennessee is $2,850, which is 35% more than the national average of $2,110 for $300,000 worth of dwelling coverage. However, the average premium for home insurance coverage in Tennessee was $1,296 per year in 2020, according to the National Association of Insurance Commissioners (NAIC). This was slightly lower than the national average of $1,311 reported in the same year.
Home insurance policies in Tennessee typically include standard coverages, but it's important to remember that every policy is unique. Here are some common coverages provided by home insurance policies in Tennessee:
Dwelling Coverage (Coverage A)
This coverage assists you in paying for repairs to your home caused by a covered event, such as a fire, windstorm, lightning, or hail damage. It is important to note that wind and hail damage may have separate deductibles.
Other Structures Coverage (Coverage B)
Loss of Use or Additional Living Expense Coverage (Coverage D)
If your home becomes uninhabitable due to covered damage, this coverage assists in paying for temporary living expenses elsewhere.
Personal Liability Coverage (Coverage E)
This coverage provides financial protection in the event of accidental property damage or injuries caused by negligence.
Personal Property Coverage
This coverage protects your personal belongings, and some companies, such as USAA, offer replacement cost coverage, ensuring you can purchase brand-new replacements for your items.
It is important to carefully review your home insurance policy to understand the specific coverages, exclusions, and deductibles included. Additionally, it is worth noting that flooding, a common risk in Tennessee, is typically not covered by standard homeowners insurance. However, special flood insurance through the National Flood Insurance Program (NFIP) may be available.
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How location affects the cost
The cost of homeowners insurance in Tennessee varies based on several factors, with location being the most significant determinant. Premiums differ across cities and ZIP codes, influenced by local crime rates, weather risks, and the cost of rebuilding or repairing homes.
For instance, the average annual premium in Knoxville is $2,134, while in Memphis, it is $3,155. Chattanooga has an average monthly cost of $236, compared to $289 in Memphis. The 37664 ZIP code area offers the most affordable rates in the state, at $2,216 annually or $185 monthly.
Weather risks, such as flooding and tornadoes, are a significant consideration in Tennessee. Standard homeowners insurance typically covers tornado damage but often excludes flood damage, requiring separate insurance. Areas with a higher risk of natural disasters are generally classified as high-risk and face higher premiums.
In addition to weather risks, population density and home value influence insurance rates. Higher population density and more valuable homes tend to result in higher premiums. The age of a property also matters, with older homes usually commanding higher prices for insurance due to their increased vulnerability to damage.
Lastly, the choice of coverage level and deductible affects costs. Higher coverage limits and lower deductibles lead to higher premiums, while lower coverage limits and higher deductibles reduce the overall price.
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The cheapest home insurance companies
The cost of home insurance in Tennessee varies depending on factors such as location, coverage needs, credit score, and property value. The average annual cost of home insurance in Tennessee is $2,850, 35% more than the national average of $2,110. However, according to a 2020 report by the National Association of Insurance Commissioners, the average premium for home insurance in Tennessee was $1,296 per year, slightly lower than the national average of $1,311.
When it comes to finding the cheapest home insurance companies in Tennessee, here are some options to consider:
State Farm
State Farm offers some of the best auto and home insurance bundles in Tennessee. They provide a 28% discount for bundling home and auto insurance, the largest among the evaluated companies. State Farm also has high customer satisfaction scores and is known for its ease of service and various policy offerings. According to Insurance.com, State Farm offers the cheapest car and home bundles in Tennessee, with an average rate of $2,843.
Auto-Owners
Auto-Owners is another option for affordable home and auto insurance bundles in Tennessee. Customers rate the company highly for high renewal rates and affordable monthly premiums. Auto-Owners is also known for its good customer service and discounts. However, it is important to note that they work solely through agents and do not offer online quoting.
Travelers
Among large insurers, Travelers offers the cheapest annual home insurance on average at $2,055, according to NerdWallet's analysis.
USAA
USAA is mentioned as one of the top home insurance companies in Tennessee by NerdWallet. They offer features that other insurers may charge extra for, such as automatically covering personal belongings on a replacement cost basis. This means that USAA will pay for brand-new replacements for your items, while many companies only pay out the worth of the items at the time of the claim.
Farm Bureau Insurance of Tennessee
Farm Bureau Insurance of Tennessee offers a range of insurance options, including home insurance. They emphasize local knowledge and personalized coverage, with local agents who understand Tennessee life and can provide tailored support.
When considering home insurance in Tennessee, it is important to evaluate your specific needs, compare rates, and consider bundling discounts offered by different companies. Additionally, remember that flooding, a common risk in parts of Tennessee, is typically not covered by standard home insurance policies but may be available through the National Flood Insurance Program (NFIP).
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Discounts and ways to save on home insurance
Home insurance costs in Tennessee vary depending on location and coverage level. The average annual cost of home insurance in Tennessee is $2,850, which is 35% more than the national average. However, there are ways to save on your home insurance premiums. Here are some tips to help you secure cheaper home insurance in Tennessee:
- Bundle your policies: Combining home and auto insurance can lead to significant savings on both policies. Purchasing bundled policies in Tennessee can result in a yearly discount of $141.
- Shop around and compare rates: Acquiring quotes from multiple companies and comparing rates can help you find the most competitive deal.
- Enhance your credit score: Improving your credit score can significantly reduce your premiums. Moving from a fair to a good credit score can save you an average of 28%.
- Make home improvements: Adding storm shutters or installing security systems can lower your premiums.
- Inquire about discounts: Ask about all available home insurance discounts, as some insurers only apply certain reductions if you request them.
- Determine how much coverage you need: Before buying insurance, consider how much coverage you require to avoid being oversold by agents.
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How credit score impacts insurance rates
The average cost of homeowners insurance in Tennessee is $2,850 per year, 35% more than the national average of $2,110. However, insurance costs can vary depending on factors such as location, the value and age of the home, the amount of personal property coverage, and specific risks in the area. For instance, the average cost of homeowners insurance in Nashville is $2,840 per year, while in Memphis, it is $3,395.
In Tennessee, as in most other states, insurers use credit-based insurance scores to help set rates. A credit score is a number that estimates how safe it is for a company to lend an individual money. A higher credit score indicates lower financial risk, which can lead to lower insurance rates. Conversely, a lower credit score may result in higher insurance premiums.
In Tennessee, individuals with poor credit pay an average of $6,060 per year for homeowners insurance, according to NerdWallet's rate analysis. This is 113% more than those with good credit. Poor credit can significantly increase insurance rates, with some individuals paying up to $400 more per month.
While credit scores play a role in determining insurance rates, it is not the sole factor. Insurance companies also consider other factors, such as claims history, the type of home being insured, and specific risks associated with the area. Additionally, certain states have restrictions on how insurance companies can use credit-based insurance scores. For example, in Maryland, insurance companies cannot refuse coverage, cancel a policy, or base insurance rates solely on an individual's credit history.
It's important to note that when providing a quote, insurance companies typically perform a soft pull on an individual's credit, which does not impact their credit score. A hard pull, on the other hand, provides a full credit history but can slightly lower an individual's credit score for a short time.
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Frequently asked questions
The average cost of homeowners insurance in Tennessee is $2,850 per year, which is 35% more than the national average.
The cost of homeowners insurance in Tennessee depends on several factors, including the location, age, and condition of your home, as well as your credit score and insurance history.
According to NerdWallet's rate analysis, homeowners with poor credit in Tennessee pay an average of $6,060 per year for insurance, which is 113% more than those with good credit.
Home insurance policies in Tennessee typically cover damage from natural disasters such as wind, hail, lightning strikes, and wildfires. However, flooding is not usually covered, so you may need to purchase separate flood insurance.
To save money on homeowners insurance in Tennessee, consider getting quotes from multiple insurance companies, asking about discounts, and raising your deductible if you can afford a higher out-of-pocket expense. Bundling your home insurance with other types of insurance, such as auto insurance, can also help lower your overall costs.
