Whether you’ve found your personal paradise in a Great Smoky Mountains log cabin or an urban condo in Music City, one thing is certain — you’ll need to protect your investment. There’s a peace of mind that comes with knowing you did the research and chose the best homeowners insurance in Tennessee.

What makes an insurance company worthy of your business? We’ve devoted an entire article to answering that question, but what we were looking for, in a nutshell, was quite simple — honest insurance agents, transparent coverage, affordable premiums, and a sterling financial reputation. Several insurance providers in Tennessee checked all those boxes.

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The Best Homeowners Insurance in Tennessee

Freshome’s Recommendations: State FarmAmicaLiberty MutualAllstateTravelers InsuranceNationwideChubbGEICO

We set out to gather sample quotes from a variety of insurance companies. To do that, we needed a home. We chose a brand new, two-story, single-family townhouse in Madison, Tennessee, with $200,000 worth of coverage on a HO3 policy.

We’ll go into more detail discussing the various kinds of policies later in the article, but for basic coverage, we highly recommend selecting an HO3 policy. It’s the most commonly used policy for homeowners insurance in the US, and for good reason. Note that an HO3 policy is a hybrid policy that is sometimes referred to as a Special Forms Policy.

Our Quotes
Amica$950 Per Year
Liberty Mutual$1,104 Per Year
State Farm$1,202 Per Year

With an HO3 policy, your home is covered under an “open perils” policy and your personal possessions are covered by a “named perils” policy. A peril is an event or disaster that causes damage or destruction to your home and/or possessions. Fire damage, flooding, windstorm damage are all examples of perils. An open perils policy means that you’re protected from any damage possible, except for those specifically listed as being excluded. With an open perils policy, there will be no unpleasant surprises as to how you’re covered. When it comes to homeowners insurance, transparency is always a good thing.

Under an HO3 policy, your possessions are covered under a named perils policy, which means that the peril that caused damage must be explicitly named in your policy in order for you to receive coverage.

Back to the quotes. You may be tempted to choose the cheapest policy and get on with your day. But there are many other factors, such as the financial strength rating of the insurance company, that you should consider before selecting your homeowners insurance. A financial strength rating reflects the insurer’s ability to meet its policy and contract obligations; it also rates other facets of the business such as customer satisfaction, pricing, overall policy offerings, how easy it is to contact your agent, and billing and payment procedures.

We set the bar high. In order for our team to recommend an insurance company, it needed to meet the following criteria: J.D. Power rating of three or more stars, an A.M. Best rating of B+ or more, and a high financial strength rating from Moody’s and/or Standard & Poor’s.

Our experts weighed in on customer service. Our experts have worked with each company we’ve recommended, and they’ve had positive experiences. It’s important that you find an individual agent within an insurance company that you can trust and develop a good rapport with; after all, he or she will be your home’s lifeline in the event of a disaster.

All told, after comparing financial strength scores and affordability, we found Amica to be the best homeowners insurance company to work with. AMica offered the best rates, has high marks across the board in terms of customer experience, and was named the best homeowners insurance company by J.D. Power.

What You Should Know Before Getting a Quote

By now, you might be brimming with questions about what coverages you should consider and the average cost of insuring a home in Tennessee. Let’s dive right in.

Coverage to Consider

It’s a universal truth that homeowners want to protect their property — after all, for many people, it’s one of the largest investments they’ll ever make. To ensure your home will provide your family shelter for years to come, you need to make certain you have both the structure and your possessions covered. We’ve already discussed an HO3 policy; there are other things to consider to avoid being underinsured in a time of need.

The devastating floods in Nashville back in 2010 are still at the forefront of many Music City residents. Flood insurance is unfortunately not covered in a standard policy. Are you unsure if your home is located in a floodplain or flood-prone area? This map from FEMA will let you if any past flooding has occurred on or near your property.

If you’re a collector of high-value items (such as baseball cards, furs, jewelry, or antiques) or if you have custom, high-end furniture, it may be wise to receive an appraisal on these big-ticket items by both your insurance company and an outside appraiser. There’s a chance that your standard policy may not provide enough coverage for these higher value pieces. If your items are worth more than the amount of coverage they are allotted in your policy, you may want to talk to your agent about raising those premiums in favor of more protection. Additionally, looking into an HO5 policy will grant your personal possessions the right to be included on an open perils policy.

What To Expect

The average premium for homeowners insurance in Tennessee is $942 per year. Our sample quotes were in the same ballpark. However, remember that prices vary based on a multitude of factors — including the home, its location, and your personal history — so remember to shop around and find the quote that works for you and your home. The company that gave us the cheapest quote might give you the most expensive, or vice versa.

If you had to take out a loan for your home, you’re probably well aware of the impact your credit score can have on your interest rates. Well, for better or worse, your credit score will play a role in determining your homeowners insurance premium, as well. If you have a poor credit score, insurance companies assume you are an at-risk customer who could possible default on a payment or make claims more frequently. Therefore, they’re going to charge you more. The inverse is also true — if you have an excellent credit score, you may get a slight discount.

Do you have a car? If so, bundling your auto insurance with your homeowners insurance might be a great option to help you save some cash. Check with your insurance agent and see what kind of deals your company offers, as holding two policies with the same company will usually qualify you for a cheaper premium.

Handy Information

You’ll need to have a lot of information about your home prepped and ready to go before you apply for a quote. To help make this process go smoothly, we’ve compiled a list of the bare basics you should know:

  • Age of home
  • Square footage
  • Construction details (roof, structure, basement, siding)
  • Number of bathrooms and bedrooms
  • Past home-insurance claims on home
  • Any home insurance claims you yourself have made within the last five years
  • Distance from closest fire station, police station, and hospital
  • Distance from nearest fire hydrant
  • Presence of smoke and burglar alarms
  • Amount of wood-burning stoves

It’s also important to have an itemized list of your personal possessions to ensure they are adequately covered. As discussed above, if some of these items are particularly high in value, it’s a good idea to have them appraised.

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Tennessee Regulations and Laws

The Volunteer State doesn’t require its residents to have homeowners insurance by law. But don’t close out the browser! Unless you’re paying outright for your home, your lender will most likely require you to carry enough insurance to at least cover your loan.

Why Are Tennessee’s Rates So Average?

Nationally, homeowners pay an average of $1,096 per year for homeowners insurance. In Tennessee, that figure drops slightly to $942 per year. Tennessee’s homeowners insurance premiums are average because the state itself is protected from extreme weather conditions. While thunderstorms, excessive rain during monsoon season, and in some areas, snow, could possibly have an adverse effect on your home, there is no risk a hurricane will come in and sweep your house out to sea.

And remember, rates vary greatly from ZIP code to ZIP code. A suburban home perched high above sea level will have cheaper rates than an urban home purchased near a high-crime area.

FAQs

What are common coverage gaps?

In a nutshell: home businesses, some natural disasters, expensive jewelry, and mold. If you run a business out of your home, chances are good that the equipment necessary to run your business is not covered in your standard policy. It’s also important to carefully scrutinize your policy to see what perils are covered and which aren’t. Sump pump backups, for example, are often not covered by standard policies.

Make an itemized list of your expensive possessions, have them appraised, and consider adding additional coverage. Additionally, with Tennessee’s humid summers, it may be wise to research adding extra protection on your home for mold remediation.

What about flood insurance?

As discussed above, flood insurance is a separate entity that you will need to inquire about adding to your policy. While a portion of your home will likely be covered in the case of a sewer backup, unless you have a specific policy for flood insurance, your home and belongings will not be covered. Again, it’s important to find out if your home is in a floodplain.

However, you may want to consider flood insurance even if you’re not in a flood-prone area. We spoke to Raphael Smith, Principal Broker at Raphael’s Realty, about the massive flood that Nashville experienced in 2010 (classified as a 500-year flood). “A lot of people in Nashville were flooded that never thought they would be flooded,” he said. In fact, 25 percent of the flood insurance claims came from people living in low-risk flood areas.

How much liability coverage do I actually need?

Typically, your homeowners insurance policy will provide you with a standard amount of $100,000 of liability coverage. This coverage can provide financial relief for damages and defense (attorney fees and beyond). However, if you feel you may need more coverage than what is on your policy, you can acquire an additional protective blanket with a personal umbrella policy. This umbrella policy can add anywhere from $1 to $5 million in liability protection.

Take Action

We’ve listed our recommendations for the best homeowners insurance companies in Tennessee and described the information you should have on hand before you shop around for quotes. We’ve also discussed various kinds of policies and the coverages they offer. We recommend getting sample quotes from a wide variety of insurance providers. With a little work on your end, you will be well on your way to protecting the home you’ve just purchased.

Freshome’s Recommendations: State FarmAmicaLiberty MutualAllstateTravelers InsuranceNationwideChubbGEICO

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: