Cheapest Home Insurance Companies in Tennessee (2026 Rates)

State Farm offers the cheapest homeowners insurance for Tennessee homeowners at $2,225 per year, followed by Foremost Insurance at $2,391 per year. The five most affordable insurers save you $459 to $819 compared to the state average of $3,045. But "cheapest overall" doesn't hold for every homeowner profile: Foremost undercuts State Farm by $372 a year at the $100,000 coverage tier, and Allstate beats State Farm's rate at every credit tier except good credit. 

Price alone also doesn't capture what each policy covers or how each carrier handles a claim. Erie, for example, costs $307 more than State Farm annually but adds guaranteed replacement cost coverage and a flood-adjacent endorsement most competitors don't offer, while Foremost's low price at smaller coverage levels comes with one of the weakest customer-satisfaction records in J.D. Power's 2025 U.S. Home Insurance Study.

*Rates above reflect homeowners with good credit and no claims history and a home built in 2000 insured for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage with a $1,000 deductible.

Rates vary by city, reflecting each area's risk profile: Knoxville and East Tennessee carry the lowest premiums in the state, while Memphis and West Tennessee price highest, driven by greater exposure to tornadoes, urban property crime, flooding and the New Madrid Seismic Zone. Knoxville's cheapest rate, $1,676/year with Allstate, is $548 less than Memphis's cheapest rate of $2,224/year with State Farm. But that lower premium doesn't reflect a lack of flood risk: FEMA found fewer than 1% of homes were insured against flood damage in the East Tennessee counties hit hardest by Hurricane Helene in 2024.

State Farm holds the lowest rate at every coverage tier except the lowest, where Foremost leads. State Farm's price advantage over Allstate also widens as coverage increases: at $250,000 in dwelling coverage, State Farm underprices Allstate by $240 (10%); at $1,000,000, that gap grows to $1,323 (24%).

For a smaller home, get a Foremost quote alongside State Farm's since the $100,000 tier is the only one where Foremost is cheapest. For a higher-value home above $500,000 in dwelling coverage, run State Farm against Allstate specifically, since that's where the price gap — and the payoff from comparison shopping — is largest.

Tennessee law permits insurers to use credit-based insurance scores when pricing homeowners policies, and the effect is substantial: Allstate's own premium rises from $1,067/year at excellent credit to $3,152/year at poor credit, nearly triple for the same $250,000 coverage on the same home. State Farm climbs even more steeply, from $1,180/year at excellent credit to $3,782/year at poor credit, a $2,602 increase. For those with poor credit, State Farm costs $630 more than Allstate for identical coverage.

Homeowners with lower credit scores should get an Allstate quote before assuming State Farm is still the better deal. Allstate undercuts State Farm at every tier except good, by as much as $630 a year at the poor tier. And because the price difference between tiers is worth more than most other discounts combined, raising your credit score even one tier is one of the highest-value moves a Tennessee homeowner can make.

For Tennessee homeowners, cutting insurance costs by hundreds of dollars annually is possible through discounts, higher deductibles and smart home improvements.

Our rate analysis is built around what most Tennessee homeowners need: standard coverage for a typical single-family home built within the past 25 years.

We pulled quotes from major insurers using one consistent homeowner profile across the state. Holding the profile constant removes the variables that usually make insurer-to-insurer comparisons difficult, so the pricing differences reflect the companies, not the inputs. This base profile matches Tennessee's most common home insurance scenario.

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
• Good credit
• No claims filed in the past 5+ years

For specialty scenarios such as coverage-level, credit-tier and city comparisons, we changed individual variables from the base profile while holding everything else steady. Isolating one variable at a time shows exactly how that factor moves the rate against 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.