---
title: Mortgage Protection Insurance in Tennessee | Coverfolk
url: https://coverfolk.com/states/tennessee/mortgage-protection
updated: 2026-10-08
---

# Mortgage protection insurance in Tennessee

Keep the house paid for your family. Local numbers and Tennessee rules.

Updated October 8, 2026[Fact checked](/editorial-standards)

The short answer

About 1,106,000 Tennessee homes still have a mortgage, 57% of owned homes. The typical owned home is worth $332,600. A term policy sized to your loan keeps the house paid if you pass away.

Homes owned
:   67%

Owned homes with a mortgage
:   57%

Typical home value
:   $332,600

Median household income
:   $71,997

Census ACS 2024 one year estimates.

## How it works

Mortgage protection is life insurance sized to your home loan. The money goes to your family, not the bank, and they choose how to use it. It is not PMI, which protects the lender.

A regular level term policy can do the same job, often for less. Match the term to the years left on your loan. [Mortgage protection vs term life](/compare/mortgage-protection-vs-term-life).

## Tennessee cities with the most mortgages

[Clarksville 68%](/states/tennessee/clarksville)[Nashville 68%](/states/tennessee/nashville)[Murfreesboro 67%](/states/tennessee/murfreesboro)[Knoxville 64%](/states/tennessee/knoxville)[Memphis 58%](/states/tennessee/memphis)[Chattanooga 55%](/states/tennessee/chattanooga)

## Tennessee rules

* Free look: set by policy
* Grace period: one month
* Guaranty protection: $300,000

[Mortgage protection calculator](/mortgage-protection-calculator)

## Common questions

Is mortgage protection insurance required in Tennessee?

No. Lenders can require homeowners insurance and sometimes PMI, but not mortgage protection life insurance. It is your choice.

How much mortgage protection do I need in Tennessee?

Start with your loan balance. The typical owned home in Tennessee is worth $332,600. Use our calculator to add a cushion.

What if my insurer fails in Tennessee?

The Tennessee Life & Health Insurance Guaranty Association protects up to $300,000 in death benefits per person.

## Sources

1. [Census ACS 2024 1 year estimates, table based summary file](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/)
2. [CFPB: What is private mortgage insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/)
3. [New York DFS: Types of Life Insurance Policies](https://www.dfs.ny.gov/consumers/life_insurance/types_of_policies)
4. [Tennessee Life & Health Insurance Guaranty Association](http://www.tnlifega.org)