6 Best Homeowners Insurance Companies in Tennessee 2022
Homeowners in Tennessee may live in big cities like Nashville or Memphis, or small towns like Bartlett or Collierville, but they all share one thing in common: a desire to protect their homes.
In the Beaver State, homes need protection from the state’s severe storms and other natural disasters, as well as from 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
- Lemonade: Best for Online Services & Quotes
- Liberty Mutual: Best for Discounts
- Allstate: Best for Policy Endorsements
- Farm Bureau: Best for Membership Benefits
- Farmers: Best for Customizable Coverage
Shelter: Best for Storm Coverage
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 and 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 known as a philanthropic company because every year, they sponsor the Lemonade Giveback, where they donate most unclaimed money to charity.
Lemonade basic homeowners coverage starts as low as $25 per month, but it will cost more for most homeowners. Keep in mind that the amount you pay will depend upon the size of your home, its location, and your policy limits and add-ons.
Lemonade doesn’t offer the wide array of discounts that some of the other companies on our list do, but they offer three discounts to help Tennesseans save on their homeowners insurance.
- Annual pay discount. An upfront payment of your annual premium will help you save.
- Multi-policy discount. Buy two or more policies from Lemonade to get a break on your premium.
- Protective devices discount. Install smoke detectors, fire alarms, or burglar alarms to save money.
How is Lemonade Rated?
Lemonade is a relatively new company and, as such, has not yet received financial ratings from A.M. Best and other companies, but they have received good reviews from the following.
- BBB: A-
- NAIC: .081 (better than the national average)
- Demotech: A
Read a full Lemonade home insurance review.
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 as well as some things that may not be ideal for every homeowner, so let’s review the pros and cons of buying homeowners insurance from Lemonade.
|AI provides online quotes in minutes.||Services are online-only.|
|Coverage changes are easy with their free mobile app.||It can be hard to reach live customer support.|
|Claims filing takes just a few minutes and some claims are paid instantly.||Lemonade’s financial strength and claims-paying ability have not yet been rated.|
|Customer wait times are lower than average.||Lemonade offers only three discounts.|
|Lemonade’s pricing is affordable for most homeowners.|
|Lemonade Giveback makes annual charitable donations.|
Liberty Mutual: Best for Discounts
Liberty Mutual got its start 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 that include 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 also 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.
Liberty Mutual Discounts
Liberty Mutual is our choice as the company that’s best for homeowners insurance discounts, offering nine ways for homeowners to save.
- Autopay. Sign up to pay your monthly premium automatically to save.
- Paperless policy. Opt out of a paper policy to help the environment and save.
- Early shopper. Get a Liberty policy before your current policy expires to get a discount.
- Claims-free discount. Get a break on your premium if you’ve been claims-free with Liberty for three years or with another carrier for five or more years.
- Multi-policy discount. Bundle policies to save.
- Insured-to-value discount. Buy coverage for 100% of the replacement cost of your home to save.
- New/renovated home. If you live in a newly constructed or renovated home, you can get a break on your premium.
- Newly purchased home. New homeowners get a discount.
- New roof. If your roof is new, you can save on insurance.
How's Liberty Mutual Rated?
Liberty Mutual’s financial strength and stability are reflected in its ratings.
- A.M. Best: A
- Moody’s: A2
- Standard & Poor’s: A
- BBB: A+
- J.D. Power: 872/1,000
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.
|Liberty Mutual offers several options for customer support, including phone, social media, and text.||Some of Liberty’s discounts may not be available to every homeowner, particularly those living in older homes.|
|Liberty Mutual offers more discounts than any other company on our list.||Add-on coverage options are limited.|
|Live chat is available if you need help obtaining a quote.||There’s a higher-than-average volume of complaints from customers.|
|Add-ons include inflation coverage to up your policy limits as the value of your home increases.||Certain dog breeds are excluded from coverage.|
|Flood insurance is available as an add-on.|
|Liberty Mutual’s mobile app offers easy quote comparison, claims filing, and more.|
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.
Tennessee homeowners can take advantage of eight discounts to save money with Allstate.
- Bundling discount. Buy two or more policies to save.
- Claims-free discount. Get a discount if you have no recent homeowners insurance claims.
- Early signing discount. Sign your Allstate policy a week or more before your old policy expires to get a discount.
- New homeowner discount. New home buyers get a discount, as do those who buy newly constructed homes.
- New roof discount. A new roof will save you some money on your policy.
- Protective device discount. Save if your home has installed theft or fire protection devices.
- Responsible payer discount. Make your payments on time to save money.
- Welcome discount. Switch your insurance to Allstate to save up to 10%.
How is Allstate Rated?
Allstate is one of the best-known and highly-rated homeowners insurance companies in the US.
- A.M. Best: A+
- Moody’s: A3
- Standard & Poor’s: A-
- NAIC: 2.73
Read a full Allstate homeowners insurance review.
The one downside here is their NAIC rating, which indicates a higher-than-average volume of customer complaints.
Allstate has some unique pros – and a few cons – you should know about.
|Allstate’s website is user-friendly and simple to navigate.||Allstate does not offer replacement cost coverage with their standard policy.|
|Rate Guard option allows homeowners to lock in their premium.||Insurance premiums are higher than some other companies on our list.|
|Allstate offers an optional digital identity tracking tool.||Allstate doesn’t offer flood insurance (although they will facilitate your FEMA claim).|
|HostAdvantage coverage will protect you if you share a home or rent it.|
|Endorsement options include yard & garden repairs, recovery of stolen electronic data, and medical coverage for guests.|
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 of the things 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 an array of products and services using their free member app.
Best of all, while the organization was started by farmers, anybody in Tennessee can join and in doing so, support the agricultural and farming communities in the state.
The average cost of Farm Bureau homeowners insurance is $1,265 per year, which works out to $101 per month – well below the state average.
Farm Bureau Discounts
Unlike some of the other companies on our list, Farm Bureau does not have a list of discounts on their website.
As we noted above, the primary discount comes in the form of affordable, lower-than-average premiums for Tennessee homeowners insurance.
You should know that in addition to homeowners insurance, Farm Bureau also offers automobile and life insurance.
How is Farm Bureau Rated?
Farm Bureau insurance hasn’t received as many ratings as some of the other companies on our list but the ones they have are excellent.
- A.M. Best: A
- NAIC: 0.00 (lower is better, national average is 1.0)
- J.D. Power: #1 in Southeast and Texas
Farm Bureau’s low NAIC rating is a reflection of the company’s excellent customer service.
Let’s look at the pros and cons of buying your homeowners insurance with Farm Bureau.
|Rates are significantly lower than the Tennessee state average.||Membership is a requirement to get coverage.|
|Members get discounts on other products and services.||Discounts beyond those for membership are not available.|
|Farm Bureau offers stellar customer service.||Customization options are limited.|
Farmers: Best for Customizable Coverage
Farmers Insurance providers homeowners coverage in 41 states, including Teneessee, 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 policy.
Farmers offers tiered coverage that makes it simple to build a policy that’s ideally suited to your needs, whether you’re a first-time homeowner or you’ve 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.
Farmers offers four basic discounts, with a few extras that you may be able to take advantage of if you qualify.
- Safety and security discount. If your home has an installed fire alarm that communicates with your local fire department, or a security system with an outside signal that alerts local police, you can save money.
- No smoking discount. Smoking greatly increases the risk of a house fire, so Farmers Insurance offers a discount to any policyholder that doesn’t smoke or allow smoking in their home.
- Bundling discount. You can save money by bundling two or more policies with Farmers.
Claims-free discount. If you have been claims-free for three years, you’ll get a break on your premium.
How is Farmers Rated?
Farmers is a well-regarded company with significant financial strength that’s reflected in its ratings.
- A.M. Best: A
- Moody’s: A2
- Standard & Poor’s: A
- NAIC: .77
Here are the pros and cons of buying your homeowners insurance with Farmers.
|You can earn up to $50 per year with Farmers’ declining deductible option, which lowers your deductible automatically.||Using agents means that customer service is not available around the clock.|
|If you go five years without a claim, Farmers will guarantee that your premium won’t increase the next time you do file a claim.||It’s difficult to get a quote online because of the agent system.|
|Tiered coverage allows homeowners to customize a policy to meet their needs.||Farmers’ average premiums are on the high side.|
|Farmers Insurance offers excellent customer service through its agents.|
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.
How is Shelter Rated?
Shelter is a regional company that still receives high ratings for its financial strength.
- A.M. Best: A
- J.D. Power: 856/1,000
- NAIC: 4.91
Shelter does have a higher-than-average volume of customer complaints, which is reflected in its NAIC score.
Let’s review the pros and cons of buying homeowners insurance from Shelter Insurance.
|Shelter’s storm coverage is stellar, including debris removal, emergency removal of property, and fire department charges.||Phone support is not available 24/7.|
|Premiums are affordable, coming in significantly below the state average.||There’s no option to get a quote online.|
|Shelter has strong financial ratings despite being a small company.||The company has received an above-average volume of customer complaints.|
How We Selected Homeowners Insurance Companies for Tennessee
We used five criteria to choose the companies we included on this list.
Homeowners insurance in Tennessee can be costly, so we prioritized companies with more affordable rates compared to the state average when possible.
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.
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 is always important when buying insurance, and while no company is perfect, we prioritized companies with a solid history of customer support.
Today’s homeowners prefer the convenience of online and mobile services, so many of the companies we chose offer online quotes and claims filing or provide 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 you compare quotes, make sure that 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 and 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 for you and your family to stay somewhere else if your home should become 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.
- Property damage caused by covered events, including storms, fires, theft, and vandalism.
- Personal liability if a visitor to your home is insured or their property is damaged while on your property.
- Guest medical expenses 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
- 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, with an example being flood insurance, which is sold by FEMA.
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.