The Cheapest and Best Homeowners Insurance in Chattanooga
The Cheapest Home Insurance Companies in Chattanooga
Many Chattanooga home insurance carriers offer the same coverage for different prices, so it’s important to compare average annual premiums between companies. MoneyGeek compared the most affordable home insurance providers in Chattanooga for various categories of homeowners.
We found the following Chattanooga insurance providers offer the cheapest rates for home insurance policies with $250,000 in dwelling coverage:
- Auto-Owners Insurance Co: $1,599 per year.
- Allstate: $1,698 per year
In Chattanooga, the following companies provide the most affordable home insurance for homeowners who need $2 million in dwelling coverage:
- Allstate: $9,732 per year
- State Farm: $12,864 per year
We found USAA to be the cheapest provider for homeowners with $2 million dwelling coverage needs, at $7,611 per year. However, we excluded this insurer from our list, because it only serves military members and their families.
You can adjust the dwelling coverage in the table below to see how your premium varies.
The Cheapest Home Insurance in Chattanooga, Ranked
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Keep in mind that all policies with a basic baseline dwelling coverage of $250,000 have $100,000 personal property limits, whereas policies with $2 million in dwelling coverage have $800,000 personal property limits. All policies include $100,000 in liability insurance.
Homeowners in other Tennessee cities can access MoneyGeek’s guide to home insurance in the state.
The Average Cost of Homeowners Insurance in Chattanooga for 2022
In Chattanooga, homeowners insurance costs an average of $2,404 per year, compared to the national average of $2,103 and the state average of $3,466. Because insurance rates in Chattanooga are more expensive than the national average, it’s critical to shop around for the best option with the most affordable rates.
Calculate the Cost of Home Insurance in Chattanooga
When determining your rate, insurance companies consider a variety of variables, including your coverage level, credit score and more. An important factor insurance companies consider is your property’s location and whether it is in a high-risk area.
MoneyGeek's home insurance calculator can help you compare Chattanooga home insurance rates. You can modify the data to see how rates differ depending on location.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Chattanooga
When shopping for home insurance, many homeowners consider cost to be the deciding factor. While cost is important, you should also weigh the insurer’s customer service ratings, financial stability, claim ratings, response time and other factors.
MoneyGeek found that the top two best home insurance providers in Chattanooga are:
- Auto-Owners Insurance Co
Bear in mind that USAA only serves military members and their families. MoneyGeek ranked the top home insurance companies in Chattanooga based on J.D. Power satisfaction ratings, affordability, financial stability and service quality.
USAA has the highest possible customer satisfaction and stability scores, and an above-average score for affordability. The company offers home-sharing coverage, a rare add-on.
USAA’s home-sharing coverage protects you against the costs of being a landlord. The company offers customers discounts for remaining claim-free and having security systems in their homes.Read MoneyGeek's USAA home Insurance Review
Auto-Owners Insurance Co ranks highly for stability and affordability and has an above-average overall customer satisfaction rating. Customers can opt for the guaranteed home replacement add-on, which ensures you’re covered even when your limits are too low. Auto-Owners Insurance Co. also offers an uncommon add-on coverage called equipment breakdown.
Auto-Owners Insurance Co will cover the electrical or mechanical equipment failure of air conditioners, heating units, computers and major appliances in your home. Auto-Owners Insurance Co also offers a discount if you own your home outright.Read MoneyGeek's Auto-Owners Insurance home Insurance Review
Cheapest Home Insurance Companies in Chattanooga for Newly Constructed Homes
Generally, older homes are more expensive to insure compared to new homes, because newly constructed homes are equipped with modern materials that make them more durable. Furthermore, in the event of damage, newer materials are easily replaced.
In Chattanooga, a newly constructed home costs an average of $1,500 to insure, but insurance for a home constructed in 2000 costs $2,404 annually.
MoneyGeek found the following insurers are the most affordable in Chattanooga for newly constructed houses:
- Auto-Owners Insurance Co: $998 per year
- Allstate: $1,187 per year
The Cheapest Home Insurance in Chattanooga for New Homes, Ranked
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Cheapest Home Insurance Companies in Chattanooga if You Have a Lot of Personal Property
Home insurance policies also cover the personal belongings you keep in your home. Homeowners with large amounts of properties will pay more for insurance. In Chattanooga, insurance for $250,000 in personal property coverage costs $2,705, compared to an average of $2,404 for $100,000 in personal property coverage.
The most affordable insurers for homeowners with high personal property coverage needs are:
- Allstate: $1,723 per year
- Auto-Owners Insurance Co: $1,800 per year
While USAA offers a policy for $1,792, we did not include it here, because the company offers coverage only to veterans and military families.
Cheap Companies in Chattanooga for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Chattanooga for High Deductibles
Your deductible affects your home insurance premium. A higher deductible means a cheaper home insurance rate, but higher out-of-pocket costs if you file a claim. In Chattanooga, a policy with a $2,000 deductible costs an average of $2,179, while a policy with a $1,000 deductible costs $2,404 on average.
The two cheapest insurance companies for customers who want a high deductible are:
- Auto-Owners Insurance Co: $1,449
- Allstate: $1,525
The Cheapest Companies in Chattanooga for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Chattanooga if You Have Poor Credit
Chattanooga insurance companies use credit scores to determine insurance premiums. Homeowners with bad credit will pay more for insurance each year. For example, Chattanooga home insurance costs an average of $5,342 if you have bad credit, compared to $2,404 if you have good credit.
The top two cheapest home insurance companies in Chattanooga for homeowners with poor credit are:
- Auto-Owners Insurance Co: $1,599
- Allstate: $4,104
USAA is the second cheapest at $3,611 but was excluded from the list because the insurer only serves military members and their families.
The Cheapest Companies in Chattanooga for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Chattanooga
When shopping for Chattanooga home insurance, insurers will ask you several specific questions. This information will be used to provide you with accurate and personalized home insurance quotes. The following are some of the questions to expect:
- The replacement cost of your home: This is an estimate of the cost of constructing a new home to match your damaged one. A building contractor or construction professional can help you figure out this cost.
- The value of your personal property: This is the cash value of your personal property, which the insurer uses to assess your coverage needs.
- Personal information: Insurers may ask for your age, contact information, marital status, education, employment history and financial information.
- Information about your house: Home insurance providers will ask you several questions about your home, including its size, property design and layout, roof type and more.
Homeowners Insurance in Chattanooga Analysis: Methodology
MoneyGeek evaluated homeowners insurance rates from six of Chattanooga's leading insurance companies in partnership with Quadrant. Quotes were obtained for a home with varying coverage levels to provide affordability rankings. Customer satisfaction ratings were derived using J.D. Power surveys. Quotes were obtained for a 2,500-square-foot home constructed in 2000, with an average dwelling coverage of $250,000, $100,000 in liability coverage, $100,000 in personal property coverage, and a $1,000 deductible.
MoneyGeek also obtained quotes for other types of homeowners, such as those with newly built houses, higher dwelling or personal property coverage needs, higher deductibles and poor credit ratings.
About Mark Fitzpatrick