Jessica Fox Last Updated On: August 23, 2023

Finding Homeowners Insurance in Tennessee

Tennessee has given us many comfort foods and beverages, like cotton candy, Moon Pies, Mountain Dew, and Tennessee whiskey. And although home insurance didn’t originate in Tennessee, the state does offer competitive home insurance policies, if that’s what you’re craving. 

But which home insurance policy is best for you? Do you legally need home insurance? What’s the average cost of home insurance in Tennessee?

Read on, and we’ll help answer all your home insurance questions, so you can confidently take out the best policy for your needs. 

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Table of Contents

Is Home Insurance in Tennessee Legally Required?

Legally, you aren’t required to have home insurance on your house. However, you’ll likely need home insurance if you have a mortgage as part of the lender’s requirements. Most homeowners have a mortgage, so they’ll need to prove they have home insurance in Tennessee to satisfy lending requirements.

However, even if you can afford a home without a mortgage, you should still consider taking out house insurance. Extreme weather, burst pipes, theft and more are still very real threats to your home, so every homeowner should have home insurance in Tennessee to protect their investment.

What Natural Disasters Does Tennessee Experience?

Tennessee is a beautiful state with many riches for the eyes, from mountain ranges, forest trails, caves and caverns, to tourist attractions like Graceland. But regardless of all Tennessee’s natural beauty, the state also comes with an extensive list of perils that threaten your home’s integrity. 

If you want to protect yourself from paying out of pocket for damages caused by perils, you’ll need sufficient home insurance.

Tennessee is vulnerable to these perils:

  • Severe Storms: Severe storms such as thunderstorms, winter storms (including ice), and tornadoes are Tennessee’s most common causes of home insurance claims. The good news is that traditional home insurance policies, excluding HO1 plans, like HO2, HO3, and HO5 policies, cover weather-related damages to your dwelling and property, so home insurance will protect you from paying out of pocket for storm-related damages.
  • Flooding: Another common peril that happens with regularity in Tennessee is flooding. Not every county in Tennessee is at high risk for flooding, but if you live in an area prone to it, you should strongly consider taking out flood insurance. Unfortunately, traditional home insurance policies, like the popular HO3 plan, don’t cover flooding. So, if your county experiences seasonal or weather-related flooding, it would be wise to take out flooding insurance through the state or FEMA’s flood insurance program.
  • Fire: Wildfires are the trade-off to having picturesque landscapes, like the Great Smoky Mountains National Park. Tennessee may not lead the U.S. for the state with the most wildfires, but the state still experiences many fires annually. The good news is that your home insurance plan accepts wildfire claims, but you may pay higher premiums if you live in a high-risk area.
  • Sinkholes: When you’re considering risks to your property, one threat we tend to overlook is sinkholes. But did you know sinkholes are not covered by home insurance? Tennessee frequently experiences sinkholes, so if your county is prone to them, you’ll need an endorsement.

Although it might not sound like it after that list, Tennessee is a great place to live. It’s also a great place to find home insurance. Keep reading for info on what you are covered for under home insurance.

Which Perils Are Covered by Home Insurance in Tennessee?

Many perils threaten your house, like severe thunderstorms, but which are covered by your home insurance plan? As a homeowner, you want to know the perils that face your county in Tennessee, so you can double-check which perils your standard home insurance covers and which threats need additional coverage.

Here’s a comprehensive list of the 10 named perils covered by HO1 insurance (highlighted in blue) and the 16 named perils covered by all other home insurance (e.g., HO2, HO3, and HO5).

Named Perils
Lightning or FireExplosionsWindstorms or HailRiots
Aircraft Damage to your propertyVehicle Damage to your propertySmokeVandalism
TheftVolcanic EruptionsWeight of Ice, Sleet, or SnowFreezing
Accidental Tearing, Cracking, Bulging, or Burning of A/C, Hot Water, or Fire SystemsAccidental Damage Caused by Short CircuitAccidental Water, Steam Discharge or OverflowFalling Object Damage

You may be wondering where flooding or sinkholes are and whether they’re supposed to be on the list: The answer is no, traditional home insurance doesn’t cover these perils. If you’re interested in taking out flooding insurance, you can either go through the state or FEMA.

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Other Perils Not Covered by Home Insurance

Homeowners insurance in Tennessee can provide you with the same smooth comfort that the famous Tennessee whiskey can, but you must know which perils aren’t covered so you can make adjustments as needed. For instance, if you want sinkhole coverage, you can add an endorsement to your policy if you know it’s not covered.

These are the perils not covered by traditional home insurance policies:

  • Nuclear 
  • Wear & tear
  • Sinkholes 
  • Flooding
  • Earthquakes
  • Infestations (vermin or insects)
  • Power failure
  • Intentional loss

Remember to consider the known perils of your county, so you can buy additional endorsements or policies as needed. For example, if you’re in a flood zone, you may wish to purchase flood insurance through the state.

Home Insurance Protects More Than Just Your Dwelling

No matter which city in Tennessee you call home, Nashville-Davidson or Knoxville, home insurance offers more than just protection to your dwelling. However, remember that the level of protection you get from your home insurance depends on which home insurance plan you take out. For example, if you take out HO1 insurance which only covers 10 named perils, you’ll have less coverage than if you had HO3, which covers 16 perils. Home insurance that covers you against 16 named perils protects your:
  • Dwelling: All home insurance plans protect your dwelling from damage caused by perils, like a hailstorm. Dwelling coverage means that if a named peril damages the structure of your home, your insurance pays to repair or replace it.
  • On-Site Structures: If you have a shed, separate garage or fence and a covered peril damages it, your insurance will cover the repair costs.
  • Personal Property (Belongings): If a named peril like a fire happens and it damages your personal property, like your furniture or jewelry, your insurance will pay to repair or replace your belongings.
  • Liability: Liability coverage means if you damage another’s property, like breaking a window, or if someone gets hurt at your house and you’re sued, your insurance will pay for damages or legal fees.
  • Medical Payments to Others: If someone is hurt at your house and needs medical attention, medical payments to others will pay their medical expenses. However, medical payments to others is limited in terms of coverage, so you only want to rely on this coverage for small medical claims.
  • Additional Living Expenses: If a named peril damages your home and insurance is repairing it, this coverage will pay for your temporary accommodations.
Home insurance is more comprehensive than most people realize. From your guitar to your shot glasses, your windows to your roof, and everything in between, home insurance has your back. 

How Much Is Home Insurance in Tennessee?

Here’s the not-so-great news: the average cost of homeowners insurance in Tennessee is more than the national average. Tennessee residents can expect to pay around $1,700 annually for $250,000 of dwelling protection.

But don’t worry: we have tips for finding affordable homeowners insurance in Tennessee. Keep reading for that and more.

Homeowners Insurance Cost Factors

Every insurance company and state uses different factors to set your premiums, so it pays to shop around! These are some of the ways your personal profile influences how much your home insurance premiums will be:
  • Your House: How old is your place, what is your home made of, and how much will it cost to rebuild your house if it’s damaged?
  • Your Personal Profile: What’s your credit score and your personal claims history?
  • Your Neighborhood: What’s your county’s fire rating and claims history?
  • Your Insurance Coverage: What’s your coverage amount, deductible, and policy limits?
There’s no one-size-fits-all cost for home insurance. You might pay more or less than your neighbor, and that’s normal. If you feel that you’re paying too much for home insurance or paying for coverage you don’t need, you have options. We’ll explore those next. 

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Home Insurance Options for Tennessee Residents

Many types of homeowners insurance are available in Tennessee, like HO1 or HO3 plans. The dilemma facing most residents is knowing what each plan offers, so you can confidently pick the best policy for your family.

These are the home insurance policies available to Tennessee residents:

  • HO1: HO1 or basic coverage offers little protection, so only some insurers offer it. HO1 only protects against 10 named perils, and what’s worse, it only insures your dwelling (at a depreciated rate), not your belongings or anything else. Hence, this coverage is not ideal for most homeowners.
  • HO2: HO2 or broad coverage offers protection against all 16 named perils, and it covers the dwelling, personal belongings, liability, medical payments to others, and loss of use.
  • HO3: HO3 or special insurance protects your property from all 16 named perils while covering your dwelling, belongings, liability, medical payments to others, loss of use, and on-site structures. HO3 is the most popular home insurance product.
  • HO4: HO4 or renters insurance protects a renter’s belongings and covers loss of use, and personal liability.
  • HO5: HO5 or comprehensive coverage is for high-risk or high-value properties with expensive replacement rates and offers protection against all perils except listed exclusions.
  • HO6: HO6 or condo coverage protects the dwelling, belongings, liability, and loss of use.
  • HO7: HO7 or manufactured home insurance offers the same protection as an HO3 policy but for mobile homes. 
  • HO8: HO8 or modified coverage protects old homes against 10 named perils.

With this in mind, it should be a little easier to find a policy that works for your needs and your budget. 

Condo (HO6) Insurance in Tennessee

If you live in a high-rise in Memphis or elsewhere in Tennessee, you’ll want condo insurance watching out for your investment. The average cost for HO6 insurance in Tennessee ranges, but you can expect to pay between $500-$650 annually.

Manufactured Home Insurance (HO7) Insurance in Tennessee

For Tennessee residents that call a mobile or manufactured home, home you’ll pay between $400-$1,000 a year to insure your house.

Renters Insurance in Tennessee

Even if you rent a home in Tennessee, you want home insurance to protect your belongings. The average cost of renters or HO4 insurance is around $200 annually.

The Best Homeowners Insurance Companies in Tennessee

Moon Pies or cotton candy; sometimes, it’s hard to pick. The same goes for insurance providers. If you’re in the market for a new insurance company, you want a company with a good reputation, good customer service, and affordable homeowners insurance rates. 

Here are some of the top insurance companies in Tennessee:

  • Allstate
  • Auto-Owners
  • Farmers
  • Progressive
  • State Farm
  • Travelers
  • USAA

Be sure to do your research to find the right provider that checks all your boxes, from cost to reputation, and more. 

How to Save on Homeowners Insurance in Tennessee

Everybody wants to feel like they got a good deal, especially when it comes to insurance! Here’s how you can keep more of your hard-earned money in your pocket:

  • Shop Around: Don’t buy into the first sales pitch you hear. Remember that insurance companies use different algorithms based on your personal profile (e.g., zip code) and desired coverage (e.g., HO3) to determine your rates. Your premiums will suffer from the Goldilocks syndrome: too high, too low, and just right. It’s your job to collect a few quotes so that you can find the best homeowners insurance in Tennessee. Start by getting access to free quotes here
  • Get the Right Coverage: Buy the right home insurance for you! You wouldn’t take out renter’s insurance if you own a condo or HO5 insurance if you don’t live in a high-value house, so buy the coverage that fits your needs. You can do this by brushing up on your home insurance options here
  • Raise Your Deductible: Reduce your premiums by raising your deductible.
  • Ask About Discounts: Be sure to ask your insurance provider which discounts you’re eligible for, such as:
    • Claims free
    • Loyal customer
    • New customer
    • New roof
    • Paperless billing
    • And more
  • Bundling: Bundle together your insurance products for big savings, such as home and auto.
  • Safety Features: Ask your insurer which safety features, like smart home monitoring, could save you money on home insurance.
  • New Home: You’ll often save on rates if your home is under 15 years old.

You don’t have to spend a fortune to get home insurance coverage you can trust. But you might not want to immediately go with the cheapest home insurance in Tennessee either. These tips will save you money and get you great coverage that helps you sleep at night.

Final Thoughts on Home Insurance in Tennessee

Finding home insurance in Tennessee may not be as fun as taking in the sights at the Great Smoky Mountains National Park. Still, exploring your insurance options will prevent you from paying out of pocket for named peril damages to your property. If you’re looking to purchase home insurance, here are a few extra tips to help match you with the right coverage option:

  • Dwelling: Are you buying a house, condo, manufactured home, or renting? Each dwelling type offers different home insurance coverage.
    • Home insurance has a few options: HO1 (basic with the lowest coverage), HO2 (broad offers decent coverage), HO3 (special coverage offers the best protection), or HO5 (comprehensive for high-value homes).
  • Geographical Risks: Even with HO3 home insurance, it doesn’t cover every risk. Suppose you live in an area with an elevated risk of flooding or sinkholes. In that case, you’ll need a separate policy for flooding through the state or FEMA or add a sinkhole endorsement to your home insurance policy. It pays to be prepared. 
  • Discounts: Once you’ve lined up the best home insurance, now is the time to find ways to save on the coverage you need. You can save by shopping around for the best rates and by asking which discounts you’re eligible for.

Next up? Picking out the best policy for you. Start by getting access to free quotes fast here. When it matters, we’ve got you covered.

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