Every year, thousands of active-duty service members, veterans, and military families relocate to Tennessee — drawn by bases like Fort Campbell, Arnold Air Force Base, and the Naval Support Activity in Mid-South, along with a growing civilian defense and aerospace workforce across Middle and East Tennessee. Many of these buyers use a VA loan to purchase their first home, and one of the most overlooked parts of that process is homeowners insurance. Getting it wrong can delay your closing — or leave you underinsured the moment you move in.
At All Seasons Insurance Group, we work with military families relocating to Tennessee every month. Here's what you need to know about homeowners insurance and VA loans before you sign anything.
Yes, VA Loans Require Homeowners Insurance
A common misconception is that VA loans, because they're backed by the Department of Veterans Affairs, come with insurance built in. They don't. The VA guarantees a portion of the loan to your lender, but you are still required to carry an adequate homeowners insurance policy before closing — just like with a conventional or FHA loan. Your lender will require proof of insurance (a "binder" or declarations page) days before closing, and your policy must be in force on the closing date.
What makes VA loans distinct is the coverage minimums lenders check for:
- Dwelling coverage must be sufficient to cover the full replacement cost of the home, not just the purchase price. Lenders will flag a policy that under-insures the structure.
- Flood insurance is mandatory if the home sits in a FEMA-designated Special Flood Hazard Area, regardless of loan type. Several fast-growing areas near Fort Campbell and along the Cumberland and Tennessee River corridors have flood zones that surprise buyers who assumed they were "not near water."
- Named-storm and wind/hail deductibles should be reviewed carefully — Middle Tennessee's severe storm season means many policies carry a higher percentage-based deductible for wind and hail than buyers expect.
The PCS Timeline Problem
Military families often move on a Permanent Change of Station (PCS) timeline that's tighter and less flexible than a typical civilian relocation. Orders can put a hard date on a closing, and mortgage underwriters won't budge on the insurance requirement to accommodate it. We've seen closings nearly derailed because a service member assumed insurance could be arranged "after the move" — it can't. The policy needs to be bound and the first year's premium paid (or escrowed) before your lender will fund the loan.
Our advice: start shopping for homeowners insurance the moment you're under contract, not the week of closing. A same-day quote and bind is possible, but doing it under deadline pressure with movers already scheduled is the worst way to make an insurance decision. If you're PCS-ing to Tennessee, reach out to us as soon as you have a ratified contract so we can have your binder ready well ahead of your closing date.
Renters Insurance for the Gap
Many military families rent for a period before buying, especially if they're stationed somewhere temporarily or waiting on base housing availability. If that's you, don't skip renters insurance in the interim — it's inexpensive (often under $20/month in Tennessee) and covers your household goods, liability, and additional living expenses if something happens to the rental. It also protects you during the vulnerable window when your belongings are in transit or temporary storage during a PCS move, which is often when damage or loss occurs.
Deployment and Vacancy Considerations
One issue that's unique to military homeowners: what happens to your homeowners insurance if you deploy and the home sits vacant, or if you rent it out rather than sell when you get new orders? Standard homeowner policies typically have vacancy clauses that can limit or void coverage after 30-60 days of the home being unoccupied. If you plan to deploy, are stationed overseas, or intend to convert your Tennessee home into a rental property (common among military families who buy in a place they intend to return to or invest in long-term), you need a policy structured for that — either a vacancy endorsement or a landlord/rental dwelling policy. Don't assume your existing homeowners policy automatically covers a change in occupancy; insurers require notification, and undisclosed vacancy or rental use is one of the most common reasons a claim gets denied.
Bundling and Military Discounts
Many carriers offer discounts for military service members and veterans, and bundling your auto and homeowners policies together often produces the biggest overall savings — particularly useful when you're also insuring a vehicle that just made the drive to Tennessee. We shop multiple carriers on your behalf specifically to find military-friendly underwriting and pricing, rather than putting you into a single "one size fits all" policy.
What To Have Ready When You Reach Out
To get you an accurate quote and a fast binder, have these ready:
- Your ratified purchase contract (address, purchase price, closing date)
- Square footage and year built (from the listing or appraisal)
- Roof age and any recent updates (roof, HVAC, electrical, plumbing) if the home is older
- Your lender's contact information so we can send the binder directly to them
- Whether you'll be occupying the home full-time, part-time, or planning a future rental/vacancy period
Buying a Home in Tennessee? Get the Real Estate Side Right First
If you haven't yet found the right home or agent for your PCS move, our friends at Kings of Real Estate specialize in helping military families and veterans navigate Tennessee's housing market on a timeline, with agents who understand VA loan contingencies and PCS deadlines. For financing questions specific to your move, AnnieMac Home Mortgage can also help you understand your VA loan options — reach their local team at (865) 518-6408.
Get Your Homeowners Insurance Lined Up Today
Whether you're relocating on orders, separating from active duty and settling down in Tennessee, or buying an investment property near a base, All Seasons Insurance Group can get you a fast, accurate homeowners insurance quote that meets your VA loan requirements — with enough lead time to avoid closing-day stress. Call us at (865) 263-1400 or visit asigtn.com to get started.
