Caleb Meriwether, Haven Insurance Partners, visits with Dan Reaves, host of ‘The Dan Reaves Show,’ today, and each Wednesday at 3:30 p.m., to discuss all things insurance.
Tennessee has not escaped the national trend of rising insurance premiums, but its moderate risk profile and central U.S. location provide some insulation from the extremes seen in coastal or wildfire-prone states. Still, carriers operating in Tennessee are pricing in regional weather volatility, inflationary pressures, and legal environment shifts.
Homeowners Insurance in Tennessee
Expected rate increases: 6–10% annually
Key drivers:
– Wind and hail storms, especially across Middle and West Tennessee
– Rising building costs, particularly for roofing, lumber, and skilled labor
– Reinsurance pressures on regional carriers like Farm Bureau, Erie, and Auto-Owners
Auto Insurance in Tennessee
Expected rate increases: 10–15% in 2025
Key drivers:
– Increased accident frequency, particularly in metro areas like Nashville and Memphis
– Litigation trends with growing severity of bodily injury claims
– Rising repair costs and longer rental durations due to parts shortages
Commercial Insurance in Tennessee
Commercial Property: Premiums are expected to increase 8–15%, especially for:
– Industrial and manufacturing risks in Jackson, Memphis, and Chattanooga
– Businesses with high property values or older construction
General Liability & Umbrella: Modest increases of 5–10%, but higher in sectors prone to
contractor liability or Employment Practices Liability Insurance (EPLI) exposures
Inland Marine and Builders Risk: Rate pressure due to supply chain inflation and theft
losses on job sites
Workers’ Compensation in Tennessee
Relatively stable, with flat to 3% increases expected in 2025
Key drivers:
– Tennessee’s NCCI filings remain favorable thanks to low claim frequency and employer
safety investments
– Mod rates may tick up slightly for construction, warehousing, and agriculture sectors
Tennessee Insurance Market Summary
Coverage Type TN Forecast (2025) Regional Risk Factors
Homeowners 6–10% increase Wind/hail, rebuild costs,
reinsurer pressure
Personal Auto 10–15% increase Urban crash frequency,
parts/labor costs, BI suits
Commercial Property 8–15% increase Construction inflation,
storm losses
Liability & Umbrella 5–10% increase Legal system severity, EPLI risks
Workers’ Compensation Flat to slight rise Stable loss data, minor
inflationary pressure
