The Cheapest and Best Homeowners Insurance in Memphis
The Cheapest Home Insurance Companies in Memphis
While comparing quotes from various insurers, you will find that most of them offer similar core coverages. As a result, pricing is a significant factor to consider when choosing a home insurance policy in Memphis.
The two cheapest home insurance companies in Memphis with a $250,000 dwelling coverage are:
- Allstate: $1,888 per year
- USAA: $2,085 per year (only serving current and former military members and their families)
For expensive homes covered by a $2,000,000 dwelling coverage, the cheapest insurance companies in Memphis are:
- USAA: $9,933 per year (only serving current and former military members and their families)
- Allstate: $10,695 per year
Your home insurance rates are determined by the dwelling coverage limits you choose. To see how adjusting your dwelling coverage changes your insurance rates, check the table below.
The Cheapest Home Insurance in Memphis, Ranked
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The insurance plans considered for the analysis have a $250,000 initial baseline dwelling coverage and a $100,000 personal property coverage. The personal property limit increases to $800,000 for plans with $2,000,000 in dwelling coverage. The liability limit on all policies is $100,000, regardless of the home coverage limits. If you live in another part of Tennessee, you can also compare statewide home insurance rates with various insurers.
The Average Cost of Homeowners Insurance in Memphis for 2021
In Memphis, home insurance costs an average of $3,852 a year or $321 per month. This is more than Tennessee's state average of $3,466 a year and the national average of $2,103.
Calculate the Cost of Home Insurance in Memphis
While your location influences the cost of your home insurance policy in Memphis, other factors, such as the amount of dwelling and personal property coverage you buy and your credit score, also play a role. MoneyGeek's home insurance calculator will be a useful tool for comparing rates from various insurers serving in Tennessee.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Memphis
Although cost is an important factor to consider when buying homeowners insurance in Memphis, you should also consider the customer service experience and financial stability of the insurance companies you're comparing. Since you are more likely to make a claim while you are in financial trouble, a financially stable insurer will be able to provide peace of mind by efficiently paying your legitimate claim.
According to a MoneyGeek analysis, the best home insurance companies in Memphis are:
- Best Overall: USAA (only serving current and former military members and their families)
- Runner-up: Allstate
To find the best homeowners insurance companies in Memphis, MoneyGeek rated them based on customer satisfaction, affordability and financial stability.
USAA policyholders are eligible for discounts for installing home security systems. Plus, USAA offers claim-free discounts for those who don't make a claim for several years. USAA's home-sharing coverage will be a relief to those who rent out their homes or share them with tenants. Besides protecting you, the coverage also protects your guests or renters.
USAA is MoneyGeek's top pick after it earned 99.2 out of 100 points. It received top ratings across multiple categories, including J.D. Power's customer service and AM Best's financial stability. However, the company only provides insurance to current and retired military personnel.Read MoneyGeek's USAA home Insurance Review
If you’re worried about your insurance rates going up after making a claim, you can go for Allstate’s Claim Rateguard add-on. It safeguards your premiums from increasing in price even after you file a claim. And if you’re switching from a different company, Allstate still discounts your rates for being claim-free.
Allstate is the runner-up after scoring highly across multiple categories, including MoneyGeek’s affordability ratings. The company discounts your deductible by $100 each year you go claim-free.Read MoneyGeek's Allstate home Insurance Review
Cheapest Home Insurance Companies in Memphis for Newly Constructed Homes
In Memphis, newly constructed homes are much cheaper to insure compared to the ones that were built years ago. New homes are more resistant to damages as they are built with new and modern materials. Since those with new homes are less likely to make a claim and it’s easier to replace newer materials, insurers offer home insurance at cheaper rates.
The average cost of home insurance for a newly constructed home in Memphis is $2,419 per year, compared to an average of $3,852 per year for a home built in 2000.
The two cheapest homeowners insurance companies in Memphis offering $250,000 in dwelling coverage for newly constructed homes are:
- Allstate: $1,320 per year
- USAA: $1,509 per year (only serving current and former military members and their families)
The Cheapest Home Insurance in Memphis for New Homes, Ranked
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Cheapest Home Insurance Companies in Memphis if You Have a Lot of Personal Property
The home insurance policy you purchase will cover both the home’s structure and the personal belongings you choose to protect. The insurance rate will increase with the amount of personal property you choose to cover. A standard home insurance policy with personal property limits of $250,000 will cost Memphis homeowners an average of $4,362 per year. A $100,000 personal property coverage limit, on the other hand, will cost you $3,852 per year on average.
For homes with a $250,000 dwelling coverage and high personal property limits, the two cheapest home insurance providers in Memphis are:
- Allstate: $1,914 per year
- USAA: $2,149 per year (only serving current and former military members and their families)
Cheap Companies in Memphis for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Memphis for High Deductibles
The deductible on your homeowners insurance policy is the sum you must pay out of pocket before your insurer pays the claim amount. The deductible also helps determine the cost of your homeowners insurance plan. If you choose a higher deductible, the insurance premium will be lower.
On average, a home insurance policy with a $2,000 deductible costs $3,508 in Memphis and a policy with a $1,000 deductible costs $3,852, which is a difference of $344.
The following two companies provide the cheapest homeowners insurance in Memphis for homes with a $2,000 deductible:
- Allstate: $1,701 per year
- USAA: $1,841 per year (only serving current and former military members and their families)
The Cheapest Companies in Memphis for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Memphis if You Have Poor Credit
While evaluating home insurance quotes in Memphis, insurance companies look at your credit score. Most insurers believe that an individual with a low credit score is more likely to file a claim. As a result, homeowners with poor credit will pay a higher average home insurance rate in Memphis.
For example, if you have a low credit score, a standard home insurance policy in Memphis will cost you an average of $8,816 per year. Those with good credit will pay $4,964 less per year for the same policy.
The following are the cheapest homeowners insurance providers in Memphis for those with a poor credit score:
- USAA: $4,425 per year (only serving current and former military members and their families)
- Allstate: $4,778 per year
The Cheapest Companies in Memphis for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Memphis
To find online home insurance quotes in Memphis, homeowners will need to include a few details, including the ones mentioned below:
- Home replacement cost: This provides an estimate of the cost of restoring your home to its earlier state if it is damaged due to a covered risk. This figure also helps insurers calculate the dwelling coverage for your insurance policy.
- Personal property value: The personal property coverage limit under your home insurance policy is determined by the total value of the personal belongings you wish to insure.
- Personal information: In order to obtain online home insurance quotes, you will be required to provide personal information, such as your home address, insurance claim history and the number of people residing in your home.
- Home details: To give you a more precise home insurance quote, insurers will need to know the age of your home, its size and whether it has any built-in safety features.
Homeowners Insurance in Memphis Analysis: Methodology
MoneyGeek conducted this study on six insurance companies from Memphis using the data provided by Quadrant. We considered a home with varying levels of coverage for the affordability ratings. We also used J.D. Power's surveys to measure each company's customer satisfaction ratings.
The base profile was an average homeowner with a 2,500 square-foot home built in the year 2000. The house had $250,000 in dwelling coverage, $100,000 in personal property coverage and $100,000 in liability coverage. All considered policies had a $1,000 deductible, regardless of their coverage limits.
We also used profiles of homeowners with newly constructed homes, higher deductibles, bad credit scores and those who increased dwelling or personal property coverage.
About Mark Fitzpatrick