Finding an affordable price for home insurance is a main concern for many homeowners. A good approach to getting reasonable rates is comparison shopping. We analyzed average costs for large home insurers to assist you in discovering the best homeowners insurance in Tennessee.
Cheap Home Insurance in Tennessee Cost Comparison
| Company | Average annual home insurance cost in Tennessee |
|---|---|
|
$1,085
|
|
|
Westfield
|
$1,280
|
|
$1,537
|
|
|
$1,551
|
|
|
$1,590
|
|
|
$1,618
|
|
|
Shelter
|
$1,930
|
|
Tennessee Farmers
|
$1,972
|
|
$1,994
|
|
|
Grange Mutual
|
$2,290
|
|
$2,367
|
It’s wise to compare home insurance quotes if your goal is to find cheap homeowners insurance. As you can see in the table above, home insurance costs can vary significantly from one insurance company to the next. You won’t know how much you can save without comparison shopping.
But you don’t want to base your decision on price alone. The best home insurance company for you will also offer coverages and home insurance discounts that match your homeowner profile.
Tennessee Homeowners Insurance Cost Factors
Your chances of finding cheap home insurance in Tennessee will be influenced by several cost factors, such as:
- The age of your house
- The materials that make up your house
- The cost to rebuild your house
- Your personal claims history
- The claims history in your area
- The fire rating of your area
- Your credit
- The coverage amount and policy limits
- Your deductible
What Does Tennessee Homeowners Insurance Cover?
A standard homeowners insurance policy (also known as an HO-3) covers your home for any problem that is not excluded in the policy. Some examples of common exclusions include floods, earthquakes, sinkholes, war, wear and tear, power failure and nuclear hazard.
Your personal property is covered for specific “perils” in a standard home insurance policy. Theft, vandalism, explosions and fire are just a few of the problems covered by home insurance.
When deciding how much home insurance you need, you’ll want to assess how the different types of home insurance work together to protect you.
A standard home insurance policy can be divvied up into these main coverage types, which can pay out up to the limits specified in your policy when you file a claim:
- Dwelling: This pays to repair or rebuild your house if it’s damaged by a problem covered by your policy. It also covers structures attached to your home, like a deck or garage.
- Other structures: This coverage pays to repair or replace structures that are not attached to your house, like a shed or fence.
- Personal property: This type of home insurance pays to repair or replace your belongings after a problem such as a theft or fire. This includes items like your couch, rugs, electronics, clothes and jewelry..
- Liability: This pays for injuries and property damage you accidentally cause to others. For example, if your child knocks a ball through a neighbor’s window, liability insurance covers the damage. It also pays for a legal defense, court judgments and settlements if you are sued because of an accident.
- Medical payments to others: Smaller medical claims made by people who do not live in your home, no matter who is at fault for the accident, are covered by medical payments insurance. For example, if a guest cuts their hand while helping you prepare dinner, this coverage could help pay for a trip to urgent care. It’s usually sold in small amounts, like $1,000.
- Additional living expenses: If you cannot live in your home because of a problem covered by your policy (like a fire), additional living expenses can cover bills like takeout meals, pet boarding and hotel bills.
Compare Home Insurance Quotes
1
Lemonade
Excellent
Average
2
Erie
Very good
Low
3
Chubb
OK
Very low
What’s Not Covered by Homeowners Insurance in Tennessee?
Not all problems are covered by a standard HO-3 policy. Common exclusions include problems like floods, earthquakes, sinkholes, war, wear and tear, power failure, intentional loss and vermin and insect infestations.
It’s worth your time to review your policy closely to understand what’s not covered by your policy.
Flood Insurance In Tennessee
A standard home insurance policy does not cover flood damage. With the frequency of floods in Tennessee, you may want to consider flood insurance if your property is at risk.
Financial help from the government after a flood can be limited, if it’s available at all. That’s why it’s a good idea to have your own flood insurance to rely on. Most people who get flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. You can also buy flood insurance through the private market.
FEMA’s Individuals and Households Program (IHP) can provide direct and financial assistance after a major disaster, if you qualify. This program helps people find housing after a problem directly caused by a disaster, provided it’s not covered by other sources or insurance.
Earthquake Insurance in Tennessee
Just because Tennessee has not had any declared disasters for earthquakes does not mean the state isn’t at risk. In fact, certain areas of Tennessee are at moderate to high risk, according to the 2018 long-term national seismic hazard map from the U.S. Geological Survey.
The Volunteer State frequently has minor earthquakes because it has two seismic zones—the New Madrid Seismic Zone (NMSZ) in the west and the East Tennessee Seismic Zone in the east.
But a standard home insurance policy won’t cover earthquake damage. You will need to buy a separate earthquake insurance policy if you want coverage.
Earthquake insurance typically covers your:
- Dwelling
- Other structures
- Personal property
- Additional living expenses
Earthquake insurance generally has a separate deductible from your home insurance, often between 10% to 25% of the dwelling’s policy limit.
Tips for Buying Tennessee Homeowners Insurance
Whether you’ve had a home for decades and you’re looking for a new insurer or you’re about to close on your first home, you want to buy a policy at a reasonable cost without sacrificing important coverage types. Here are guidelines for both longtime homeowners and newcomers:
- Go with a financially sound company. Check financial strength ratings from companies like Standard & Poor’s or A.M. Best. Some banks may not finance your mortgage unless your insurer has an “A” financial strength rating.
- Get multiple quotes. The best way to shop for a good price is to get quotes from several insurance companies. Remember, not all companies price their policies the same which is why it’s a good idea to compare home insurance quotes.
- Assess your rebuilding costs. Your dwelling coverage should be the amount it costs to rebuild your home with equitable materials and labor costs in your area. If you don’t know this number, ask a trusted contractor or speak with your insurance agent.
- Consider add-on coverage for your belongings. If you have pricey possessions like jewelry, you might want to consider scheduling personal property so your high-value items are insured for what they are worth.
- Go with replacement cost coverage. If you want to replace damaged items with new items, replacement cost is the best choice. Actual cash value only pays the depreciated value of your items.
- Seal up coverage gaps. You can bump up your coverage with add-ons such as sewer and water backup coverage or higher limits for landscaping.
- Cover your assets. Make sure your liability coverage is adequate to cover your assets in case you are sued because of an accident.
- Ask for discounts. Insurers offer a variety of discounts to attract and retain customers. You might be eligible for discounts if you have a home security system or you insure your home and car with the same company.
Methodology
Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.
