6 Best Homeowners Insurance Companies in Tennessee 2023
Homeowners in Tennessee may live in big cities like Nashville or Memphis or small towns like Bartlett or Collierville, but they all share a common desire to protect their homes.
In Beaver State, homes need protection from the state’s severe storms and other natural disasters and risks such as theft or fire damage.
Tennessee state law doesn’t require homeowners insurance, but most lenders do, so you’ll need to find a policy that provides the coverage you need.
The cost of homeowners insurance will vary based on your location and the size of your home. The average cost in Tennessee is $2,090 per year or $175 per month, which is higher than the national average.
At PropertyNest, we want your Tennessee home to be protected, so we’ve done the research to help you sort through your options and find the best insurance policy for your needs.
Here’s what we learned about the best homeowners insurance companies in Tennessee.
Best Homeowners Insurance Companies in Tennessee
- Liberty Mutual: Best for Discounts
- Allstate: Best for Policy Endorsements
- Lemonade: Best for Online Services & Quotes
- Farm Bureau: Best for Membership Benefits
- Farmers: Best for Customizable Coverage
Shelter: Best for Storm Coverage
Liberty Mutual: Best for Discounts
Liberty Mutual started over 100 years ago and is a highly-rated and respected insurance company.
The company offers standard homeowners insurance coverage plus the option to customize your policy with an array of add-ons, including identity theft and inflation protection.
Of all the companies on our list, Liberty Mutual offers the longest list of discounts, which homeowners can layer to maximize their savings.
Liberty Mutual has embraced the world of online and mobile services, and you can get a quote on their website or mobile app, where you can file a claim and manage your policy.
The average monthly cost of homeowners insurance with Liberty Mutual starts at $87, which is well below the Tennessee average and probably due to the large array of discounts.
Read a full Liberty Mutual home insurance review.
Liberty Mutual is an impressive company, but there are pros and cons to consider before you buy homeowners insurance with them.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Lemonade: Best for Online Services & Quotes
Lemonade is the youngest company on our list, and they’ve distinguished themselves by using artificial intelligence to provide speedy online quotes and coverage recommendations.
Tennessee homeowners can get quotes on the company’s website or by downloading their free mobile app, which can also be used to file claims.
The best part about Lemonade’s online and mobile service model is that some claims may be processed immediately. Their average waiting time to help a policyholder is just three minutes.
Their basic homeowners insurance policy offers all the traditional coverage, including protection for your dwelling, personal belongings, and personal liability coverage, with add-on coverage available.
Lemonade is also a philanthropic company because they sponsor the Lemonade Giveback yearly, where they donate the most unclaimed money to charity.
Lemonade, basic homeowners coverage, start as low as $25 per month, but it will cost more for most homeowners. Remember that the amount you pay will depend upon the size of your home, its location, and your policy limits and add-ons.
As Lemonade expands into additional states and its coverage and claims-paying ability become known, we anticipate that the company will receive ratings, and we will update when they do.
Lemonade has some unique features and some things that may not be ideal for every homeowner, so let’s review the pros and cons of buying homeowners insurance from Lemonade.
Read a full Lemonade home insurance review.
| J.D. Power (out of 1,000) | 870 |
|---|---|
| BBB | B+ |
| NAIC Complaint Index | 1.94 |
Allstate: Best for Policy Endorsements
Allstate is one of the biggest insurance companies in the US, having been in operation since 1931.
They made our list because we wanted to make sure to include an option that made it easy for Tennessee homeowners to add endorsements to their policies.
Their website is well-designed and user-friendly, and it’s easy to file and track claims, something we think that all Tennesseans will appreciate.
If you live in an area that’s susceptible to flooding, you should know that Allstate can facilitate your FEMA claim if you buy flood insurance.
Allstate’s average monthly cost for homeowners insurance is $170, which is only slightly below the state average. However, you can save by layering multiple discounts.
Read a full Allstate homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Farm Bureau: Best for Membership Benefits
Farm Bureau isn’t the most widely-known company on our list, but we chose them because they offer some significant benefits that allow Tennesseans to save money.
One thing that makes Farm Bureau unique is that it is a membership organization, and you must pay an annual membership fee of $30 to take advantage of the benefits.
In addition to saving on homeowners insurance, members also receive discounts on various products and services using their free member app.
Best of all, while farmers started the organization, anybody in Tennessee can join and in doing so, support the agricultural and farming communities in the state.
Farm Bureau homeowners insurance costs $1,265 per year, which works out to $101 per month – well below the state average.
Farm Bureau Insurance hasn’t received as many ratings as some other companies on our list, but they have excellent ones.
Farm Bureau’s low NAIC rating reflects the company’s excellent customer service.
| J.D. Power (out of 1,000) | 883 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Farmers: Best for Customizable Coverage
Farmers Insurance provides homeowners coverage in 41 states, including Tennessee, thanks to its extensive network of over 48,000 agents.
We chose it for our list because it offers homeowners in Tennessee the best chance to get the coverage they need by customizing their policies.
Farmers offer tiered coverage that makes it simple to build a policy ideally suited to your needs, whether you’re a first-time homeowner or have owned your home for years.
We also like that their premiums are lower than the national average and allow homeowners to save money on their policies.
The average annual cost of homeowners insurance with Farmers is $2,060, which works out to $171 per month, slightly less than the state average.
Read a full Farmers homeowners insurance review.
| J.D. Power (out of 1,000) | 792 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A- |
| NAIC Complaint Index | 0.56 |
Shelter: Best for Storm Coverage
Tennessee residents know that severe storms are no joke, and that’s why we chose Shelter Insurance for our list.
While all homeowners insurance provides some protection against storm damage, Shelter goes above and beyond by covering debris removal and other storm-related expenses.
We also like that Shelter’s average premium is well below the Tennessee state average for homeowners insurance.
The average cost of Shelter’s homeowners insurance in Tennessee is $1,280 per year, putting it significantly below the state average.
Let’s review the pros and cons of buying homeowners insurance from Shelter Insurance.
| J.D. Power (out of 1,000) | 856 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 0.47 |
How We Selected the Best Homeowners Insurance Companies in Tennessee
We used five criteria to choose the companies we included on this list.
Costs
Homeowners insurance in Tennessee can be costly, so we prioritized companies with more affordable rates compared to the state average when possible.
Available Discounts
On a related note, we chose companies that offered one or more discounts to policyholders to allow them to reduce the cost of homeowners insurance.
Available Coverage
Coverage options are essential for any homeowner that wants to protect themselves and their property, so we looked for companies with available endorsements and add-ons.
Customer Service
Customer service is always important when buying insurance, and while no company is perfect, we prioritized companies with a solid history of customer support.
Technology
Today’s homeowners prefer the convenience of online and mobile services, so many companies we choose offer online quotes and claims filing or free mobile apps.
What Are the Factors That Impact the Cost of Homeowners Insurance?
Many factors can impact how much you’ll pay for homeowners insurance.
| Location | Your risk is based on where you live, including factors such as proximity to water or a fire station as well as the risk of theft or vandalism. |
|---|---|
| Deductible | Policies with a low deductible are more costly than those with a high deductible. |
| Coverage limits | If you own a high-value home and opt for high limits, you should expect to pay accordingly. |
| Age of your home | Many carriers offer discounts for new homes and charge more to insure older ones. |
| Pool/fireplace | Having a pool or fireplace can add to your costs. |
| Additional coverage/endorsements | If you choose to schedule valuable items or purchase special coverage, your cost will increase. |
As a reminder, when comparing quotes, make sure you’re comparing apples to apples.
How Much Homeowners Insurance Do You Need?
Buying homeowners insurance requires you to understand how much coverage you need as it relates to the value of your house.
Here’s a guideline to help you determine the appropriate coverage limits.
- Dwelling coverage protects your house and any attached structures; you’ll need enough coverage to rebuild your home if it’s destroyed.
- Other structures coverage protects structures on your property, including sheds, fences, and other outbuildings, and should equal 10% of your dwelling coverage.
- Liability coverage protects your personal liability if someone is injured or their property is damaged while they’re on your property. For most people, $100,000-$500,000 of coverage is enough.
- Personal property coverage covers your belongings if they’re destroyed, damaged, or stolen, and you’ll need between 50% and 70% of your dwelling coverage.
- Additional living expenses coverage pays you and your family to stay somewhere else if your home becomes uninhabitable for a time, and you’ll need 20% of your dwelling coverage.
- Medical payments coverage offers protection if anyone is injured while on your property, and in most cases, the coverage limit is between $1,000 and $5,000.
If you add everything together, you’ll see that your total coverage (excluding personal liability and medical coverage) should be approximately twice the replacement value of your home.
What Is and Isn’t Covered by Homeowners Insurance
Homeowners insurance provides extensive protection, but it doesn’t cover everything.
The things that are typically covered include the following.
- Property structures, including your home, garage, sheds, and any outbuildings on your property.
- Personal belongings, whether they are in your home or not.
- Covered events, including storms, fires, theft, and vandalism cause property damage.
- Personal liability if a visitor to your home is insured or their property is damaged while on your property.
- Guest medical expenses are up to the policy limit.
There are things that aren’t covered, too, although some can be remedied by adding a policy rider or endorsements, including the following.
- Flood damage
- Earthquake damage
- Neglect
- Pest infestation or damage
- High-value items, unless scheduled
- Power failure
- Nuclear hazard
- Government action
There is no remedy for the final two items but they are unlikely to occur; they are there to protect the insurance company from liability in the rare likelihood that they become an issue.
The other exclusions can largely be remedied with endorsements or a separate insurance policy, an example being flood insurance, which FEMA sells.
Synopsis
At PropertyNest, we suggest that every Tennessee homeowner should obtain homeowners insurance quotes from at least three carriers to compare prices and get the best deal.
Your best bet is to purchase enough coverage to replace your home in the event of a total loss due to a storm or fire.
You may want to consider choosing a company that provides extra coverage for storm damage if you live in an area where that’s a significant risk.
Keep in mind that the state average is only a guideline and you may pay more or less based on your location and the value of your home.
