Tennessee Homeowners Pay Some of the Lowest Insurance Costs In The Country

Tennessee homeowners enjoy some of the lowest average insurance costs in the Southeast, even as premiums rise in coastal and climate-vulnerable states.

While affordability challenges are reshaping housing markets nationwide, new data from the U.S. Census Bureau and the 2025 Climate Risk Report show that Tennessee remains a relatively affordable place for homeowners coverage.

Tennessee’s Insurance Costs Stay Affordable

According to the American Community Survey (ACS) data from the U.S. Census Bureau, Tennessee homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage also average $1,000–$1,499. Overall statewide costs fall into the same $1,000–$1,499 range.

Tennessee has 1,957,004 insured homeowner households in total—1,105,878 with a mortgage and 851,126 without. Among mortgaged owners, 98,755 pay less than $100 annually and 56,122 pay $4,000 or more. Among those without a mortgage, 176,795 pay less than $100 and 34,144 pay $4,000 or more.

Compared with nearby states, Tennessee is among the more affordable. Kentucky and North Carolina homeowners with a mortgage also average $1,000–$1,499, placing them in line with Tennessee. Georgia is slightly more expensive, with mortgaged households averaging $1,500–$1,999. Alabama homeowners average $1,500–$1,999, while Mississippi falls into the same range. This positions Tennessee as one of the lowest-cost insurance states in the region, despite its exposure to tornadoes and severe storms.

Climate Risks Across the Region

The Climate Risk Report highlights how climate-driven hazards are fueling high insurance costs elsewhere. Miami leads the nation, with homeowners paying an average of $22,718 annually, equal to 3.7% of median home value. Other Florida metros such as Cape Coral, Sarasota, and Tampa also appear near the top of the list.

Tennessee does not appear on the report’s rankings of metros with the steepest insurance burdens, nor does it rank highly for flood, hurricane, or wildfire risks. Still, the state faces tornadoes, severe thunderstorms, and flooding along the Mississippi and Tennessee Rivers.

These recurring events contribute to premiums but have not yet pushed statewide averages into higher tiers.

A National Affordability Challenge

Even though Tennessee’s premiums are relatively low, insurance affordability is a growing issue across the country. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges obtaining or renewing policies.

These pressures are already changing how people buy homes. Nearly 30% of homebuyers said they had completely changed the geographic areas they were searching due to insurance concerns, while another quarter said they had overhauled their strategies altogether. A recent migration analysis shows that some buyers are actively relocating to areas with the lowest home insurance premiums, shifting demand across state lines.

Even more concerning, 58% of homeowners nationwide said they would consider dropping coverage altogether if costs rose too high, with younger buyers the most likely to take that risk.

Tennessee’s Outlook

For Tennessee households, current affordability is a key advantage, especially compared with states in the Gulf Coast and Atlantic regions. Still, with severe weather risks continuing to increase, residents may want to use a home insurance comparison tool to evaluate coverage options. While Tennessee enjoys relatively low homeowners insurance costs today, premiums could rise in the years ahead, narrowing the state’s affordability edge.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.