Cheapest Home Insurance in Tennessee (2026 Rates)

Key Takeaways: Find Cheap Tennessee Coverage

USAA offers the cheapest homeowners insurance in Tennessee, with average rates of $2,041 per year.

The five most affordable Tennessee home insurers are USAA, State Farm, Foremost Insurance, Allstate and Erie, with average costs ranging from 17% to 33% below the state average of $3,045.

Bundling your home and auto insurance policies typically saves 10% to 25% on premiums, making it one of the most valuable discounts available from Tennessee insurers.

Who Are the Cheapest Home Insurance Companies in Tennessee?

USAA is the cheapest home insurance company in Tennessee with low average rates of $2,041 per year, though eligibility is limited to military members, veterans and their families. State Farm ranks second at $2,225 annually and provides coverage to all Tennessee residents. The five most affordable insurers deliver savings between $512 and $1,004 compared to the state average.

USAA: Cheapest for Tennessee Military Families
State Farm: Cheapest for Most Tennessee Homeowners
Foremost Insurance: Cheapest for Low Coverage Limits
Allstate: Cheapest for Smaller Homes
Erie: Affordable Option


USAA	$170	$2,041	-33%
State Farm	$185	$2,225	-27%
Foremost Insurance	$199	$2,391	-21%
Allstate	$205	$2,465	-19%
Erie	$211	$2,533	-17%

*The rates above are for homeowners ages 41 to 60 with good credit and no claims history. They use a home built in 2000 being insured for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage with a $1,000 deductible.

Cheapest Tennessee Home Insurance Rates by Category

According to our cost research, USAA offers the lowest rates across all categories in Tennessee, but eligibility requires military affiliation. For homeowners without military connections, State Farm provides the most affordable coverage in five of seven categories, including older homes, seniors and high-risk fire zones. Progressive and Allstate round out the most budget-friendly options for newer homes and smaller properties.


Older Homes	State Farm	$2,251
Newer Homes	Progressive	$1,461
Young Homeowners	State Farm	$2,226
Senior Homeowners	State Farm	$2,209
High-Risk Fire Homes	State Farm	$2,493
Smaller Homes	Allstate	$1,935
Larger Homes	State Farm	$2,595

COMPARE COVERAGE OPTIONS AND SERVICE QUALITY

The cheapest company may not be the best fit for your situation. Customer service quality, coverage options and claims handling matter beyond price alone. Our guide to the best home insurance companies in Tennessee compares insurers across these factors.

Cheapest Homeowners Insurance by Tennessee City

Risk factors for insurers vary by location, making some providers more affordable than others. In Tennessee, Foremost Insurance is the cheapest in cities like Chattanooga and Murfreesboro. However, Allstate offers lower rates in Knoxville, while State Farm is the most affordable in Memphis.


Antioch	USAA	$2,011
Burns	Foremost Insurance	$1,908
Chattanooga	USAA	$1,913
Clarksville	Foremost Insurance	$1,908
Fayetteville	Foremost Insurance	$1,908
Goodlettsville	Foremost Insurance	$1,908
Hendersonville	Foremost Insurance	$1,908
Hermitage	USAA	$1,985
Knoxville	Allstate	$1,676
Memphis	State Farm	$2,224
Murfreesboro	Foremost Insurance	$1,908
Pulaski	Foremost Insurance	$1,908
Spring Hill	Foremost Insurance	$1,908

Most Affordable Tennessee Home Insurance by Coverage Level

Your coverage needs determine which insurer offers the best rate. Foremost Insurance provides the lowest premiums for basic $100,000 dwelling coverage at $911 annually, while State Farm delivers the most affordable rates for mid-range and high-value homes. USAA is the cheapest provider at the $250,000 coverage level.

Data filtered by:


Foremost Insurance	$76	$911
USAA	$86	$1,035
Erie	$105	$1,264
State Farm	$107	$1,283
Auto-Owners Insurance	$144	$1,726

How to Save on Tennessee Home Insurance

Tennessee homeowners can cut their insurance costs by hundreds of dollars annually through discounts, higher deductibles and smart home improvements.

Bundle Home and Auto Policies

Combining your home and auto insurance with the same company saves 10% to 25% on both policies. State Farm, Allstate and Progressive all offer bundle discounts to Tennessee homeowners.

Increase Your Deductible

Raising your deductible lowers your annual premium, though you'll pay more out of pocket when filing a claim. Choose a deductible amount you can comfortably afford if you need to file a claim.

Improve Your Credit Score

Tennessee allows insurers to use credit-based insurance scores when setting rates. Improving your credit score can mean a difference of hundreds of dollars in your annual home insurance premium.

Maintain a Claims-Free History

Filing multiple claims within three years triggers rate increases. Save homeowners insurance for major losses rather than small repairs you can afford.

Ask About Available Discounts

Contact your insurer to identify all discounts you qualify for beyond bundling. Review your policy annually to add new discounts as your situation changes.

Affordable Tennessee Home Insurance: FAQ

Below are answers to frequently asked questions about the cheapest home insurance in Tennessee:

Does home insurance in Tennessee cover tornado damage?

Yes, standard homeowners insurance covers tornado damage through your dwelling and personal property coverage. Tennessee ranks among the top 10 states for tornado frequency, making this coverage essential. Your policy won't cover flooding that occurs during a tornado, so you'll need separate flood insurance for that.

Is flood insurance required in Tennessee?

Flood insurance isn't required statewide, but mortgage lenders mandate it if your home sits in a FEMA-designated high-risk flood zone. Tennessee's proximity to major rivers and frequent severe storms makes flood insurance worth considering even outside high-risk areas. Standard homeowners policies exclude all flood damage.

What's the difference between replacement cost and actual cash value coverage?

Replacement cost coverage pays to rebuild your home or replace belongings at today's prices without depreciation. Actual cash value subtracts depreciation, meaning you'll receive less money for older items and materials. Most Tennessee lenders require replacement cost coverage for dwelling protection.

Can I cancel my Tennessee home insurance anytime?

Yes, you can cancel anytime, though your insurer may charge a cancellation fee if you cancel mid-policy. You'll receive a prorated refund for unused premium. Don't cancel your current policy until your new coverage starts — even one day without insurance violates most mortgage agreements.

How We Found the Cheapest Home Insurance Companies in Tennessee

We designed our rate analysis to reflect what most Tennessee homeowners actually need: standard coverage for a typical single-family home built within the past 25 years.

We collected quotes from major insurers using a consistent homeowner profile across Tennessee. This approach isolates how each company prices the same coverage, removing variables that make direct comparisons difficult. The base profile represents the most common home insurance scenario in Tennessee.

Standard Coverage Profile:

$250,000 dwelling coverage
$125,000 personal property coverage
$200,000 liability coverage
$1,000 all-perils deductible
Home built in 2000
3-class fire protection rating
Good credit
No claims filed in past 5+ years

For specialty scenarios, including older homes, high-value properties, and rural locations, we adjusted variables from this base profile while keeping other factors constant. This shows how specific characteristics affect your rate compared to the standard homeowner.

These figures are estimates based on statewide averages. Your actual premium depends on your home's location, age, construction type and your claims history. Compare quotes from at least three insurers to find your lowest rate.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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Cheapest Home Insurance Companies in Tennessee (2025 Rates)