Finding Home Insurance When Buying a House in Tennessee

Summary: Before closing on your new Tennessee home, your lender will require proof of homeowners insurance to protect their investment. Start shopping early to compare policies and avoid delays. Pay upfront for a full year of coverage, and make sure to compare multiple carriers when selecting the right policy. Estimated Read Time: 4 mins

Table of Contents

1. When to Get Home Insurance Before Closing in Tennessee
2. Why Lenders Require Home Insurance in Tennessee
3. How to Shop for Home Insurance in Tennessee
4. Tips for Finding the Right Home Insurance Policy in Tennessee

Before you can officially call your new Tennessee house a home, your lender will want proof of homeowners insurance. They’re protecting their investment, and you’re protecting yours. Whether it’s your first home or not, having home insurance when buying a house in Tennessee is key. Our guide makes it easy to lock in the right coverage and avoid any last-minute headaches.

When to Get Home Insurance Before Closing in Tennessee

Begin shopping for homeowners insurance in Tennessee as soon as you sign your purchase agreement to prevent delays. Early shopping allows you to compare policies, choose the right coverage, and avoid last-minute issues. Some lenders require proof of insurance weeks before closing, so being prepared early ensures a smoother process.

Covering Your Policy’s Costs

As a new homeowner, you’ll typically need to pay for a full year of homeowners insurance upfront before closing. Plan ahead for this cost to avoid surprises.

Once you select a policy that meets your lender’s requirements, your insurer will work with your escrow or title company to provide proof of coverage before closing day.

If you’re worried about the finer details, working with your insurance agent and real estate agent can help you better understand how your payments are handled.

Why Lenders Require Home Insurance in Tennessee

When you’re securing a mortgage, your lender will typically require proof of homeowners insurance to safeguard their investment in your property.

This insurance ensures that, should something unexpected happen to the home, both the lender and you, as the homeowner, are protected.

Even if you’re purchasing your home with cash, it’s still wise to invest in adequate coverage to protect your financial interests and safeguard your property from unforeseen risks like fire, storm damage, or theft.

Once you have a policy, you’ll need to provide proof to your lender, and in most cases, escrow will cover the cost of your premiums and property taxes.

Using an escrow account helps you and your lender keep the home insured while avoiding missed payments and late fees.

How to Shop for Home Insurance in Tennessee

To get home insurance when buying a house, simply search for carriers near you online. However, in doing so, you may be losing a bit of money. Additionally, you may also lose out on important coverages.

Working with an insurance broker can help you quickly and accurately compare top-rated carriers to find the right policy for your needs.

When comparing carriers, be sure to find someone that offers excellent customer service, personalized protection, and yes, the lowest premium on the market.

Looking at multiple home insurance carriers and comparing coverages is one of the best ways to make sure your house is covered and you aren’t overpaying for protection.

Coverages and Protections

Homeowners can enjoy protection for their homes and other structures, like sheds or detached garages, but policies offer a lot more.

Standard coverage is going to also protect your personal belongings and can even cover you for instances where you might be held liable.

For example, if you have a kid who destroys the personal property of your neighbor while hitting a baseball, or if you host a party and someone falls and breaks their leg.

Policies can vary on how they protect you, using either a replacement cost or actual cash value basis, where your reimbursement will generally be higher if using the former.

Exclusions and Considerations

Standard homeowners insurance covers a lot, but not everything. Exclusions persist, and you’re going to need to be prepared for the extras life might throw your way.

If you’re buying a home in flood-prone areas like Memphis or along the Mississippi River, you’ll likely need a separate Tennessee flood insurance policy for full protection. Even if it’s not required, it’s a smart move given the risk.

For homeowners with high-value items like jewelry, art, or collectibles, adding a rider or extra coverage ensures you’re fully protected if disaster strikes.

Every home faces unique risks. Personalizing your coverage based on your home’s location and value can help you avoid costly surprises down the road.

Tips for Finding the Right Home Insurance Policy in Tennessee

Finding the right homeowners insurance in Tennessee can feel overwhelming, but a smart plan makes all the difference.

Here are a few quick tips to help:

• Know what affects your premium, like your home’s value, location, and credit score.
• Boost home safety with security systems and stormproofing to lower costs.
• Bundle home and auto insurance to maximize discounts.
• Always compare quotes to find the best deal.
• Review your policy every year to stay fully protected at the best price.

Sources:

Insurance 101, TN Department of Commerce and Insurance. Accessed June 2025. https://www.tn.gov/commerce/insurance/101.html