Alyssa Lane
Home insurance in Tennessee is more expensive than the national average, with an average annual cost of $3,085, or $257 per month. The cost of home insurance in the state depends on several factors, including location, coverage level, and provider. A higher deductible will reduce costs, but it also means paying more when filing a claim. While most standard homeowners' policies cover wind damage, you may have a separate deductible for wind or hail damage. Earthquake insurance also generally has a separate deductible, often between 10% to 25% of the dwelling's policy limit. So, what is the largest deductible allowed on homeowners insurance in Tennessee?
| Characteristics | Values |
|---|---|
| Average monthly cost of home insurance in Tennessee | $257 |
| Average annual cost of home insurance in Tennessee | $3,085 |
| Average annual cost of home insurance in the US | $1,754 |
| Average monthly cost in Memphis, Tennessee | $289 |
| Average monthly cost in Brentwood, Tennessee | $1745 |
| Average monthly cost in Chattanooga, Tennessee | $236 |
| Average deductible | $1,000 |
| Wind or hail damage deductible | $1,000 or 1% |
| Earthquake insurance deductible | 10% to 25% of the dwelling's policy limit |
| Effect of higher deductible | Lower annual or monthly premium |
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What You'll Learn
Wind and hail damage deductibles
In Tennessee, homeowners insurance usually covers wind and tornado damage. However, due to the state's high number of tornadoes, some companies may not cover wind damage or may charge a separate deductible for this type of damage. This separate deductible for wind damage is often referred to as a windstorm policy.
A wind and hail deductible is the amount of money you are required to pay out of pocket before your insurance covers the rest of the claim for wind and hail damage. This type of deductible is typically applied as a percentage, usually between 1% and 5% of the damage costs, rather than a flat dollar amount. For example, a policy with a $1,000 standard deductible and a 5% wind/hail deductible would result in an out-of-pocket cost of $2,500 for a $50,000 damage claim related to wind or hail.
In some cases, insurance companies may set a separate, higher deductible for wind and hail damage in coastal areas prone to hurricanes and tropical storms. This is done to compensate for the increased risk of damage in these regions.
It is important to note that insurance carriers may add or change deductibles during policy renewal periods. Therefore, homeowners should be proactive during policy renewals and carefully review any changes in deductibles, coverage, and protection offered.
While choosing a higher deductible can lower your annual or monthly premium, it is crucial to select a deductible amount that you can afford to pay in the event of a claim.
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Lower deductibles increase premiums
In Tennessee, homeowners insurance does not need to be legally required. However, mortgage lenders may require you to have it. The cost of homeowners insurance in Tennessee is $2,095 per year, or $175 a month, for an insurance policy with $300,000 in dwelling coverage. This is more expensive than the national average cost of $1,754 per year.
Home insurance costs in Tennessee can vary widely depending on where you live. For example, home insurance in Memphis costs $2,197 per year, while in Brentwood, the average cost of coverage is $1,745 per year. Tennessee has experienced 452 tornadoes from 2010 to 2022, and as a result, insurance companies may not cover wind damage or may charge a separate deductible after a tornado.
Home insurance rates are lower when you choose a higher deductible because you are taking on more financial risk. The deductible is the portion of any claim that you will have to pay out of pocket before insurance pays your claim, and it will be deducted from your settlement check. The deductible you choose is one of many factors that affect how much you pay for homeowners insurance.
The average homeowners insurance deductible is $1,000, but there are plenty of options. If you choose a high deductible, you can reduce the amount you pay for coverage, but you will have to pay that high deductible out of pocket. Before you choose a deductible, it is important to ensure that you can afford the amount in the event of a claim.
Shaffer, an independent agent in Walnut Creek, California, recommends selecting the highest deductible you can afford. This is because most home insurance companies will increase your rates after you file a claim. If you file more than one or two claims in a 10-year period, your premiums are likely to jump, and if you file two in a three-year period, they will increase significantly.
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Flood insurance
Homeowners in Tennessee are advised to purchase flood insurance, especially those in high-risk floodplains. Flood insurance is a separate policy from standard homeowners insurance and can cover buildings, contents, or both. It is important to note that flood insurance typically has a 30-day waiting period before the policy takes effect.
The National Flood Insurance Program (NFIP) is a federal program created by Congress in 1968 to help property owners financially protect themselves from floods. The NFIP is managed by the Federal Emergency Management Agency (FEMA) and offers flood insurance to homeowners, renters, and business owners in participating communities. There are 22,600 communities nationwide that participate in the NFIP, and flood insurance is available to anyone living in these areas.
To purchase flood insurance through the NFIP, individuals can use the NFIP Quote Tool to get a free and personalized quote. They can then share this quote with an insurance agent or call their insurance company to purchase a policy. It is important to note that homes and businesses in high-risk flood areas with mortgages from government-backed lenders are required to have flood insurance.
In Tennessee, individuals can find a flood insurance provider through the state's website. If a home or business is in a high-risk area, an insurance agent will likely need a FEMA Finished Construction Elevation Certificate (EC) to determine the flood insurance premium. By purchasing flood insurance, property owners in Tennessee can protect themselves financially in the event of a flood and recover faster when the floodwaters recede.
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Earthquake insurance deductibles
Homeowners insurance policies do not typically cover earthquake damage. Earthquake insurance is a separate policy that you can purchase to decrease financial losses in the aftermath of an earthquake. Earthquake deductibles are much higher than typical homeowners insurance deductibles, usually ranging from 5% to 25% of the coverage limit. For example, if your home is insured for $200,000, a 10% deductible would be $20,000. Depending on the policy, there may be separate deductibles for your home, belongings, and outside structures like detached garages and fences.
When shopping for earthquake insurance, it's important to understand how the deductibles will be calculated under your policy. A larger deductible means you'll pay more out of pocket for losses, but it can also lower your annual or monthly premium. You may be able to reduce your premium or deductible by retrofitting your home to make it safer and stronger. For example, bolting your house to the foundation, bracing the chimney, and putting in automatic gas shut-off valves can help to reduce earthquake damage and insurance costs.
It's also important to know what is and is not covered under earthquake policies. Earthquake insurance typically only covers direct damage to the property resulting from the shaking of an earthquake. Indirect damage, such as fire and water damage from burst pipes, is usually covered under your homeowners policy. Common exclusions in earthquake insurance policies include damage to your land, such as sinkholes or erosion. Additionally, earthquake insurance usually does not cover anything that your homeowners policy already covers. For example, if your homeowners policy covers fire damage, your earthquake policy will not cover fire damage, even if it was caused by an earthquake.
When choosing an earthquake insurance policy, you may have the option to purchase all of your coverages together under one deductible or to choose separate deductibles for your dwelling and personal property. Even with separate deductibles, the insurance company may only apply one deductible for each earthquake claim. This means that if the damage to your home exceeds the dwelling deductible, the insurance company may waive the personal property deductible. It's important to carefully read and understand your policy, including any exclusions and special limits, to know how your earthquake coverage and deductibles will work in the event of a claim.
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Tornado damage
Tennessee has experienced a high number of tornadoes compared to other states, with 452 recorded between 2010 and 2022. Tornadoes can cause severe damage to homes and property, leading to injuries and loss of life. In February 2025, a possible tornado ripped through communities near Knoxville, Tennessee, resulting in widespread damage, power outages, and casualties. In April 2025, severe storms and tornadoes battered West Tennessee, causing the deaths of at least five people and leaving a path of destruction in multiple counties. An EF-3 tornado struck the town of Selmer, with peak winds estimated at 160 miles per hour, resulting in major damage to homes and infrastructure. Nashville and its surrounding areas have also been impacted by powerful tornadoes, with reports of collapsed buildings, damaged hangars at the John C. Tune Airport, and hundreds of rescuers deployed to assist affected communities.
Homeowners insurance typically covers wind and tornado damage, but it is important for residents in Tennessee to be prepared for the state's unpredictable weather and frequent tornadoes. When considering homeowners insurance in Tennessee, it is recommended to choose a higher deductible to lower your annual or monthly premium. However, a higher deductible means you will pay more out of pocket when filing a claim. Standard homeowners insurance policies may not cover all types of damage, such as flood damage, so it is advisable to purchase separate flood insurance if you live in a high-risk area. Tennessee experiences "generational flooding," which poses a significant threat to multiple counties.
Additionally, some insurance companies in Tennessee may not cover wind damage or may charge a separate deductible for wind or hail damage. For example, your policy might have a $1,000 deductible for most claims but a 1% deductible for wind claims. In such cases, you may need to purchase a separate windstorm policy or find an insurer that specifically covers wind damage. It is crucial to carefully review the coverage options and deductibles offered by different insurance companies to ensure you have adequate protection in the event of tornado damage.
To determine the largest deductible allowed on homeowners insurance in Tennessee, it is essential to consult official sources, such as the Tennessee Department of Commerce and Insurance, or seek advice from a licensed insurance agent or broker. They can provide up-to-date information on the regulations and options specific to your situation.
Overall, tornadoes pose a significant risk to Tennessee residents, and it is important to be proactive in preparing for and mitigating potential damage. Homeowners insurance can provide financial protection, but understanding the coverage limits, deductibles, and exclusions is crucial to ensuring adequate coverage in the event of a tornado or other natural disaster.
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