Key Takeaways
- Erie is the cheapest home insurance option in Memphis at an average cost of $1,708 per year.
- The average cost of homeowners insurance in Memphis is $2,570 a year, which is significantly more than the national annual average of $1,903.
- State Farm is the next-best option for Memphis homeowners, charging an average $1,867 per year.
In this article
Average home insurance rates in Memphis
The average Memphis homeowner pays $2,570 a year for insurance. That breaks down to $214 a month.
That’s 20% more than the statewide average, which is $2,047 a year — or $171 a month.
There are a number of factors that can affect your insurance rates, including your claim history, the cost to rebuild your home, your home’s age and its construction style. And, of course, location plays a key role, too.
As the chart below shows, a policy with lower deductible will traditionally cost more to insure than one with a high deductible.
| Deductible | Annual premium |
|---|---|
| $500 | $2,824 |
| $1,000 | $2,570 |
| $1,500 | $2,393 |
| $2,000 | $2,205 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
The amount of dwelling coverage you choose also plays a role in what you pay for a home insurance policy. This chart shows how dwelling coverages from $200,000 to $500,000 affect your annual premium.
| Dwelling coverage amount | Annual premium |
|---|---|
| $200,000 | $2,102 |
| $275,000 | $2,570 |
| $350,000 | $3,055 |
| $425,000 | $3,577 |
| $500,000 | $4,105 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
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Cheapest home insurance companies in Memphis
Erie offers the cheapest home insurance in Memphis. On average, Erie customers pay $1,708 a year.
State Farm is the next-best option, charging $1,867 a year.
| Insurance company | Annual premium |
|---|---|
| Erie | $1,708 |
| State Farm | $1,867 |
| USAA* | $2,073 |
| Allstate | $2,127 |
| Tennessee Farmers | $2,508 |
| Shelter | $3,008 |
| Farmers | $4,703 |
| Average | $2,570 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
To find a policy that offers you the best combination of price and coverage, compare home insurance quotes from several companies.
Best home insurance companies in Memphis
Our survey found that Erie and Allstate are the best home insurance companies available to Memphis homeowners. Here’s why:
Best for cheap rates: Erie
Erie offers the cheapest home insurance in Memphis, with annual premiums averaging $1,708 per year. The provider also offers plenty of discounts, including:
- Safety discounts: Erie will give you a safety discount for installing smoke detectors, sprinklers or a home security system.
- Multi-policy discount: Customers who also use Erie for their life insurance policy can get a bundling discount on home and auto coverage.
In addition to its affordability, Erie also has a relatively high customer satisfaction rate, scoring eight points above average in J.D. Power’s 2022 Home Insurance Study.
Best for discounts: Allstate
Allstate ranks as Memphis’s third-cheapest provider (barring USAA, which is reserved for veterans and their families).
But Allstate also has a plethora of discounts, including savings of up to 25% off for customers who have multiple policies with the provider, as well as savings for those who pay their bills on time.
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Customer service ratings for Memphis home insurance companies
Based on J.D. Power’s 2022 Home Insurance Study, State Farm is the highest-rated provider available in Memphis.
The company has an overall satisfaction score of 829 — 10 points above the average.
J.D. Power’s customer satisfaction scores are based on customer surveys that rate home insurers on interaction, policy offerings, price, billing process, policy information and claims. Higher scores are better than lower ones.
| Insurance company | Overall satisfaction score |
|---|---|
| State Farm | 829 |
| Erie | 827 |
| Allstate | 815 |
| Farmers | 792 |
| Shelter | Not included |
| Tennessee Farmers | Not included |
| USAA* | 884 |
| Source: J.D. Power 2022 U.S. Home Insurance Study. *Brand is not rank eligible because it does not meet study award criteria. | |
Tennessee Farmers, meanwhile, has the best NAIC Complaint Index score, ranking over 0.1 points better than the second-best option.
The NAIC Complaint Index compares insurance companies by confirmed complaints.
A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size. A 0.5 rating reflects half as many as expected.
| Insurance company | Complaint Index rating |
|---|---|
| Tennessee Farmers | 0.03 |
| Erie | 0.14 |
| Shelter | 0.19 |
| USAA | 0.31 |
| Allstate | 0.33 |
| State Farm | 0.35 |
| Farmers | 0.39 |
| Source: National Association of Insurance Commissioners (2022 data) | |
Home insurance risks in Memphis
There are multiple home insurance risks that contribute to Memphis’s relatively high home insurance rates. Among those are weather events like tornadoes and floods.
Tornadoes
Thunderstorms and tornadoes are highly common in western Tennessee, with the majority of tornadoes touching down in March, April and May.
The good news is that a standard home insurance policy covers many of the damages associated with these storms, such as from wind and hail. However, a standard policy won’t usually include coverage for flood damage.
Flooding
As Memphis is prone to flooding from severe storms, it’s worth understanding if your home is in a high-risk zone.
Flood insurance usually isn’t included in a standard home insurance policy, but you can buy it if you feel you need to protect your home and possessions from damage.
Frequently asked questions
On average, home insurance costs $2,570 a year for Memphis residents.
Erie is the cheapest home insurance option in Memphis, charging $1,708 a year. State Farm and Allstate are the next-best options.
Tennessee state law does not require homeowner’s insurance, although most lenders will require insurance in order to offer financing.
Methodology
We collected quotes from every ZIP code in Memphis, Tennessee, for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
Home insurance by city
- Nashville
- Memphis
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