Tennessee home insurance

A quality home insurance policy protects your assets against potentially devastating loss.
Compare, shop and customize quotes from top-rated insurance carriers.

For Tennessee residents, the search for affordable, quality home insurance can be a daunting task. However, the right tools and appropriate information can assist you in finding the best solution for your needs. Your particular home situation is unique, so feel free to have a VIU by HUB Advisor find you the best options for your ideal Tennessee home insurance policy.

Why you need Tennessee home insurance

Tennessee is the 16th most populous state in the United States with beautiful landscapes, thriving entertainment and a culture known for its Southern hospitality. While residents enjoy the positives of living in Tennessee, their homes experience some unique risks.

Tennessee experiences four seasons, with humidity and high temperatures averaging 91 degrees in the summer and cold temperatures with average lows around 28 degrees in the winter. Spring carries notoriously dangerous weather in the state, with nine federal weather-related disasters declared between 2019 and 2021. Tennessee is listed as one of the 10 worst states for tornadoes, with an average of 31 touching down each year and causing damages with costs in the billions. Tennessee also has the largest percentage of nocturnal tornadoes, which are the deadliest because people are sleeping when the warnings are released.

Besides tornadoes, Tennessee homes are subject to additional environmental threats. The state is located in two seismic zones at risk for earthquakes, including the East Tennessee zone and the New Madrid fault line in the northwest part of the state. Tennessee is also prone to flooding, with 42,143 square miles of the state covered in lakes, rivers and creeks that rise above their beds during periods of heavy rainfall.

How much Tennessee home insurance is needed

Tennessee law does not require homeowners to have a homeowners insurance policy. However, lending institutions generally require borrowers to have insurance as protection for their investments. As a homebuyer, once you have paid off your mortgage, you can determine whether to continue your homeowner's insurance policy. Most people do not have the financial wherewithal to pay to rebuild their home without insurance.

A good Tennessee home insurance policy protects your home, which is likely your biggest investment, from damage stemming from a multitude of potential sources. This is an important investment for most homebuyers in Tennessee due to severe weather threats and protection against theft or other potential losses.

There are insurance policies available for your unique needs and budget. A comparison of Tennessee home insurance quotes will enable you to select the best combination of coverages to protect your assets. VIU by HUB has the tools you need to compare quotes and find the best coverage at reasonable prices.

Home insurance valuation options

Homeowners insurance is extremely customizable and enables you to add options in many combinations to a basic policy in order to protect more of your assets. In the U.S., there are multiple types of standardized homeowners insurance packages. There are Basic policy forms as well as Broad and Comprehensive, offering several protection levels based on the type of structure and the owner's specific needs.

The Dwelling portion of a homeowners policy is the key Property Damage feature. There are three conditions that you can choose for the value that a claim will be paid upon after a loss to the dwelling:

Actual Cash Value

This valuation is based on the value of the property, minus the cost of depreciation.

Replacement Cost

Coverage at this valuation level pays the cost to rebuild or repair the structure based on current construction costs.

Guaranteed Replacement Cost

This is the most comprehensive valuation level. It pays for the total cost of rebuilding or repairing the home, even if that exceeds the policy limits. Guaranteed Replacement Cost has a built-in buffer against inflation, but it comes at a much higher cost than the other levels of insurance coverage.

Standard policy coverage

Standard Tennessee home insurance policies cover up to specified limits when a claim is filed. The following are covered by standard policies:

       Primary Dwelling: Includes the house and attached structures.

       Other Structures: Includes fences, sheds and other separate structures on the property.

       Liability: Pays for accidental damage and injury you or your dependents cause to others.

       Personal Property: Repairs or replaces your possessions after a loss.

       Medical Payments: May extend to others who are injured on your property, regardless of fault.

       Additional Living Expenses: Also known as Loss of Use, pays for cost of living when your dwelling is rendered uninhabitable by a covered incident.

Most homeowners policies do not provide flood coverage. Separate Flood Insurance is available in a policy from an insurance company or from the National Flood Insurance Program.

Cost of Tennessee home insurance

Tennessee home insurance costs an average of $2,000 each year. Rates will vary depending on the factors that go into your specific premium.

Factors that impact Tennessee home insurance quotes

Numerous factors impact your premium, and as providers calculate risk, they price their policies accordingly. Weather-related risks in the state cause Tennessee home insurance policies to be considered relatively risky. The following factors influence policy rates:

       Your desired amount of coverage and policy limits.

       Your chosen deductible level.

       The home's age.

       The building materials used in the home.

       Estimated rebuilding costs.

       The fire rating in your area.

       The history of claims filed in your area.

       Your credit history and personal claims history.

This information is intended for general informational purposes only and is not intended to constitute legal advice.




Tennessee Consumer Guide

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