December 6, 2023

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Best Homeowners Insurance in Tennessee (2023)

How much is homeowners insurance in Tennessee?

On average, homeowners pay $229 per month for property insurance in Tennessee. However, the exact cost of your home insurance policy varies based on several factors. For example, your location and the type of home insurance policy you select greatly influence your costs.[3]

How your policy choices affect home insurance rates in Tennessee

When you choose a homeowners insurance policy, you must make several decisions. You need to choose a policy form, deductible, coverage limits, and more. Every decision you make will affect your total costs.

Your policy form

Homeowners insurance policies fall into a few different forms. Each policy form offers different levels of coverage. Here’s a closer look at some of the most common policy forms:

  • Basic form (HO-1): This often covers 10 perils. Many insurers no longer provide this policy form due to the limited nature of its coverage.

  • Broad form (HO-2): This covers more perils than an HO-1. It can include protection for the dwelling, other structures, personal property, personal liability, and medical payments. Importantly, it covers only perils named in the policy.

  • Special form (HO-3): This is the most popular option. It covers damage to the dwelling, other structures, personal property, personal liability, and medical payments. If a peril isn’t specifically excluded, HO-3 will cover the damage.

  • Modified form (HO-8): This is often reserved for older homes with a high cost of rebuilding. It covers basic perils and rebuilding costs for older materials.[4]

Home insurance policies outline how the insurance company will pay out a claim after a peril. A peril is the cause of a loss. For example, a fire would be a peril. The different forms of home insurance cover different perils.

In general, an insurance policy with more covered perils will come with higher costs than a policy with fewer covered perils. As you narrow down your options, confirm which perils are covered. Be sure to get a policy that offers an appropriate level of coverage for common perils in your area.

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Your coverage level

A home insurance policy offers coverage up to a specified limit. A higher coverage limit offers more financial protection but often comes with higher costs. Lower coverage limits often come with lower costs. Find a balance that works for your budget and financial picture.[5]

Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.

Your deductible

When you file a claim, a deductible is what you’ll pay out of pocket before insurance covers the rest. Opting for a higher deductible typically comes with lower insurance premiums.[6]

Before choosing a high deductible, confirm you can pay it when the need arises. For example, you might want to keep enough money to cover a deductible in your emergency fund.

See Also: Selecting a Home Insurance Deductible

How location affects home insurance rates in Tennessee

Where you live affects your home insurance rates. Homeowners in different states can experience widely different rates. Even homeowners living in different parts of the same state can see a difference in average home insurance prices.

Some location-related factors that affect your home insurance costs include your proximity to a fire station, the expected frequency of weather events, and the likelihood of vandalism in your area.[4]

Below are the average monthly quotes for select cities in Tennessee:

Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.

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