The Best Cheap Tennessee Homeowners Insurance for 2024

A homeowners insurance policy provides an important financial safety net in case of damage or loss from natural disasters or theft. To help homeowners in Tennessee, here are the best homeowners insurance companies in the state. Our information below will help you find the best cheap Tennessee homeowners insurance.

• Cheapest overall for Tennessee: State Auto Mutual Group (Now part of Liberty Mutual)
• Cheapest for new home construction: State Auto Mutual Group
• Cheapest for older homes: State Auto Mutual Group
• Cheapest when you've made a claim: State Auto Mutual Group

Cheapest overall for Tennessee

The cheapest homeowners insurance policy in Tennessee is sold by:

• State Auto Mutual Group, coming in at an average annual rate of $801.
• Progressive, offering an average rate of $1,143 per year.
• American National Finance Group, averaging $1,151 per year.

Cheapest for new home construction

Homeowners insurance for new homes is typically less expensive. They are built with newer materials and must comply with stricter safety regulations, so they are less likely to have the kind of issues that older homes often do. Insurance companies aren't quite as worried about things going wrong with newer homes when compared to older ones. The cheapest Tennessee homeowners insurance for new homes comes from these companies:

• State Auto Mutual Group, coming in at an annual rate of $406.
• Progressive, offering an average annual rate of $461.
• American National Finance Group, averaging an annual average rate of $482.

Cheapest for older homes

Older homes are more likely to have problems such as plumbing and electrical issues, as well as deteriorating roofs. As a result, homeowners insurance for older homes is more expensive than for new homes. This is especially true for homes built 50 or more years ago, due to wear and tear. The cheapest Tennessee homeowners insurance for older homes comes from these companies:

• State Auto Mutual Group, coming in at an annual rate of $834.
• Progressive, offering an average rate of $1,110 per year.
• American National Finance Group, averaging $1,249 per year.

Cheapest when you've made a claim

Homeowners insurance pays for losses and damage to property if something unexpected like a fire or burglary occurs. Insurance rates typically rise when the insured makes a claim. The cheapest Tennessee homeowners insurance for people who have previously made a claim comes from these companies:

• State Auto Mutual Group, coming in at an annual rate of $929.
• Progressive, offering an average rate of $1,074 per year.
• American National Finance Group, averaging $1,164 per year.

Average home insurance cost in Tennessee compared to the national average

The average homeowners insurance in Tennessee is $2,235, which is about 25% higher than the national average of $1,787. Tennessee has a high likelihood of natural disasters and hazards, so insurers put the state in a higher-risk insurance category.

Tennessee homeowners insurance overview

There are many insurance companies that offer homeowners insurance in Tennessee. The key is finding the best value based on your needs as a homeowner. Here are some other important factors to consider when choosing the best company.

Different types of homeowners coverage

The best home insurance companies offer a wide range of coverage types. There are six types of policies designed to cover traditional site-built homes, from basic policies to those that offer more features.

The types of homeowners coverage are Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability, and Medical Payments. Homeowners should look for coverage based on their needs, what they want covered, and their budgets.

Level of coverage

Homeowners should consider a policy with high enough limits to cover the cost of rebuilding a home. Standard homeowners policies provide basic coverage for damage from natural disasters such as fire, lightning, or hail. Those who live in areas prone to natural disasters such as states like Tennessee need coverage for these events.

Amount of deductible

A deductible is an amount the homeowner must pay out-of-pocket towards a claim before the insurance company pays the rest. The deductible amount a homeowner chooses impacts the premium. The typical deductible is $1,000. If you want a lower premium cost, you can raise the deductible amount. If you want to have a lower deductible, such as $500, then your premium will be more expensive.

Potential discounts

Many insurance companies offer home insurance discounts. The exact discounts offered vary, so check your potential insurer's list. One common discount is for bundling of auto, home, and other types of insurance. Before choosing a policy, take into account any discounts you qualify for. Homeowners may get greater value at a lower cost by taking advantage of all the discounts available.

What are the most common homeowners insurance claims in Tennessee?

Tennessee is prone to a greater variety of natural disasters than other states. The most common natural disasters in Tennessee include hazards related to: droughts, earthquakes, extreme temperatures, wildfires, flooding, geologic events, severe weather, and tornadoes.

Wind and hail

Severe storms are common in Tennessee, and can come with strong winds. "Wind and hail" covers hurricanes, tornadoes, and winds. Claims under this category made up 45.5% of all claims in the U.S. in 2020, the largest percentage of homeowner claims made. The average claim cost $11,695.

Fire and lightning damage

Fire and lightning claims made up the second largest category in 2020, at 23.8% of all claims, but they are the most expensive claim, costing on average $77,340 per claim. Most policies protect the home and its contents if they're damaged by fire. Detached structures (like sheds or detached garages), and personal property in the home are typically covered in a homeowners policy. Some policies cover only a percentage of personal property losses, so it is important to have an accurate inventory of all your belongings.

Water damage and freezing

Water damage due to plumbing issues and storms made up 19.9% of all claims in 2020. It also typically includes water damage after a fire, roof leaks, or ice dams. Water damage due to lack of maintenance, negligence, or intentional damage are not generally covered. The average claim cost $11,650.

Homeowners insurance coverage options and discounts in Tennessee

Homeowners should shop around and compare prices from other companies every couple of years to find the best homeowners insurance in Tennessee. You don't want to be under-insured in the event of a disaster, but also don't want to pay for more coverage than needed. Here are coverage options to help you compare policies, plus some common discounts to look for.

Coverage options

Homeowners can pick and choose the different levels and types of coverage that best meet their needs. Here are the coverage options:

HO-1: This is known as "basic form," and is the most basic type of policy. HO-1 covers home and personal belongings at actual cash value against typical perils. HO-1 coverage is limited, so many insurance companies no longer offer this type of policy.

HO-2: This is known as "broad form," and while this policy expands on the HO-1 by offering coverage against more than basic perils, it is still limited. It includes protection against things like freezing, electrical surges, volcanic eruption, and damage due to the weight of ice, snow, or sleet.

HO-3: This is known as a "special form," and is one of the most commonly purchased types of coverage. It covers a homeowner against a wide range of risks unless they're explicitly excluded in the policy. HO-3 policies pay actual cash value to replace damaged or lost property. They take into account depreciation, and pay the current market value.

HO-5: This is known as a "comprehensive form," and unlike an HO-3 policy, it covers actual replacement value, and automatically includes coverages beyond those of HO-3. It is much broader, and as the name suggests, more comprehensive than HO-3.

HO-6: This is known as "walls-in" coverage, and is a condo insurance policy. It also covers the condo owner's personal belongings.

HO-7: This is a typical mobile home insurance policy. It covers a mobile home and personal property.

HO-8: This type of coverage is for older homes, historic homes, or homes that are architecturally important.

Discount options

It is important to shop around for the best rates and discounts. Discounts can help lower the cost of the premiums. Each insurance company offers its own discounts. These discounts can help homeowners find the best homeowners insurance in Tennessee. Here are the most common discounts out there:

• New home construction
• Home and auto bundle
• Advance pay
• Home upgrades
• Home security system
• Company loyalty
• Professional affiliation
• Non-smoker
• Homeowners association (HOA) membership

Five cheapest cities in Tennessee for homeowners insurance

There are many factors that affect the cost of a home insurance policy. Where you live is one of the biggest factors. Other factors include:

• Amount of coverage
• A home's age and condition
• Home security and safety features
• Homeowners credit history
• Additional coverage
• Deductible amount
• Choice of insurance provider

Here are the five cheapest cities in Tennessee for homeowners insurance:

Five most expensive cities in Tennessee for homeowners insurance

Here are the five most expensive cities in Tennessee for homeowners insurance:

The best homeowners insurance in Tennessee provides comprehensive coverage at the best value. It is important to look for cheap homeowners insurance in Tennessee that not only saves you money, but adds the necessary protection for your valuable property. The right policy can offer homeowners peace of mind.