2023 Best Cheap Homeowners Insurance in Tennessee

Tennessee homeowners insurance overview

There are many insurance companies that offer homeowners insurance in Tennessee. The key is finding the best value based on your needs as a home owner. Here are some other important factors to consider when choosing the best company.

Different types of homeowners coverage

The best home insurance companies offer a wide range of coverage types. There are six types of policies designed to cover traditional site-built homes, from basic policies to those that offer more features.

The types of homeowners coverage are Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability, and Medical Payments. Homeowners should look for coverage based on their needs, what they want covered, and their budgets.

Level of coverage

Homeowners should consider a policy with high enough limits to cover the cost of rebuilding a home. Standard homeowners policies provide basic coverage for damage from natural disasters such as fire, lightning, or hail. Those who live in areas prone to natural disasters such as states like Tennessee need coverage for these events.

Amount of deductible

A deductible is an amount the homeowner must pay out-of-pocket towards a claim before the insurance company pays the rest. The deductible amount a homeowner chooses impacts the premium. The typical deductible is $1,000. If you want a lower premium cost, you can increase the deductible amount. If you want to have a lower deductible, such as $500, then your premium will be more expensive.

Potential discounts

Many insurance companies offer home insurance discounts. The exact discounts offered vary, so check your potential insurer’s list. One common discount is for bundling of auto, home, and other types of insurance. Before choosing a policy, take into account any discounts you qualify for. Homeowners may get greater value at a lower cost by taking advantage of all the discounts available.

What are the most common homeowners insurance claims in Tennessee?

Tennessee is prone to a greater variety of natural disasters than other states. The most common natural disasters in Tennessee include hazards related to: droughts, earthquakes, extreme temperatures, wildfires, flooding, geological events, severe weather, and tornadoes.

Wind and hail

Severe storms are common in Tennessee, and can come with strong winds. “Wind and hail” covers hurricanes, tornadoes, and winds. Claims under this category made up 45.5% of all claims in the US in 2020, the largest percentage of homeowner claims made. The average claim cost is $11,695.

Fire and lightning damage

Fire and lightning claims make up the second largest category in 2020, at 23.8% of all claims, but they are the most expensive claims, costing on average $77,340 per claim. Most policies protect the home and its contents if they’re damaged by fire. Detached structures (like sheds or detached garages), and personal property in the home are typically covered under a homeowners policy. Some policies cover only a percentage of personal property losses, so it is important to have an accurate inventory of all your belongings.

Waterdamage and freezing

Water damage due to plumbing issues and storms made up 19.9% ​​of all claims in 2020. It also typically includes water damage after a fire, roof leaks, or ice dams. Water damage due to lack of maintenance, negligence, or intentional damage is not generally covered. The average claim cost is $11,650.

Homeowners insurance coverage options and discounts in Tennessee

Homeowners should shop around and compare prices from other companies every couple of years to find the best homeowners insurance in Tennessee. You don’t want to be under-insured in the event of a disaster, but also don’t want to pay for more coverage than needed. Here are coverage options to help you compare policies, plus some common discounts to look for.

Coverage options

Homeowners can pick and choose the different levels and types of coverage that best meet their needs. Here are the coverage options:

HO-1: This is known as “basic form,” and is the most basic type of policy. HO-1 covers home and personal belongings at actual cash value against typical perils. HO-1 coverage is limited, so many insurance companies no longer offer this type of policy.

HO-2: This is known as “broad form,” and while this policy expands on the HO-1 by offering coverage against more than basic perils, it is still limited. It includes protection against things like freezing, electrical surges, volcanic eruptions, and damage due to the weight of ice, snow, or sleet.

HO-3: This is known as a “special form,” and is one of the most commonly purchased types of coverage. It covers a homeowner against a wide range of risks unless they’re explicitly excluded in the policy. HO-3 policies pay actual cash value to replace damaged or lost property. They take into account depreciation, and pay the current market value.

HO-5: This is known as a “comprehensive form,” and unlike an HO-3 policy, it covers actual replacement values, and automatically includes coverages beyond those of HO-3. It is much broader, and as the name suggests, more comprehensive than HO-3.

HO-6: This is known as “walls-in” coverage, and is a condo insurance policy. It also covers the condo owner’s personal belongings.

HO-7: This is a typical mobile home insurance policy. It covers a mobile home and personal property.

HO-8: This type of coverage is for older homes, historic homes, or homes that are architecturally important.

Discount options

It is important to shop around for the best rates and discounts. Discounts can help lower the cost of the premiums. Each insurance company offers its own discounts. These discounts can help homeowners find the best homeowners insurance in Tennessee. Here are the most common discounts out there:

  • New home construction
  • Home and auto bundle
  • Advance pay
  • Home upgrades
  • Home security system
  • Company loyalty
  • Professional affiliation
  • Non-smoker
  • Homeowners association (HOA) membership

Five cheapest cities in Tennessee for homeowners insurance

There are many factors that affect the cost of a home insurance policy. Where you live is one of the biggest factors. Other factors include:

  • Amount of coverage
  • A home’s age and condition
  • Home security and safety features
  • Homeowners credit history
  • Additional coverage
  • Deductible amount
  • Choice of insurance provider

Here are the five cheapest cities in Tennessee for homeowners insurance:

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