First, A Note on Recent Events

Our thoughts are with everyone affected by the recent storms across the Mid-South. While we are grateful that the greater Memphis area avoided the most severe damage, we know that some families and communities were not as fortunate. To those who have experienced loss or disruption, please know that you are in our hearts and on our minds.

A Quick Look at Recent Storms

Earlier this month, a tornado touched down in the Memphis metropolitan area. Fortunately, the storm passed quickly, and Meridian Property Management is pleased to report minimal damage across the homes we manage. Some communities experienced downed trees and minor roof leaks, but no residents were injured, and no homes suffered structural damage or flooding. Work orders were quickly filed, and our team is actively coordinating repairs to ensure residents and owners are well-supported.

Memphis: A Resilient Market with Strong Insurance Support

Investing in the greater Memphis area offers many advantages, particularly when it comes to insurability, affordability, and long-term property management. While no market is immune to weather, Memphis continues to be one of the more resilient and stable investment regions in the country — especially when compared with high-risk areas like California or Florida, where insurance premiums are skyrocketing due to wildfires, floods, and hurricanes.

Unlike coastal states that face routine weather-related destruction, Memphis is naturally buffered from the most catastrophic events:

• 🌧️ No Hurricanes — Far from the Gulf and Atlantic coasts, Memphis is free from the annual storm surges and widespread evacuations that affect Florida, Texas, and Louisiana.
• 🔥 No Wildfires — Tennessee has not experienced the widespread, insurance-breaking wildfires that have devastated regions of California.
• 🌪️ Tornadoes Are Infrequent — While possible, tornadoes are rare in the core Memphis metro area. Shelby County has reported only 56 tornadoes from 1950 to 2022, significantly fewer than regions in the Plains or Midwest.

Meridian’s Commitment to Investor Protection

When severe weather occurs, our role at Meridian Property Management is clear: we protect our clients’ investments and keep their residents safe. Our team handles all aspects of storm response:

• Accepting and triaging resident repair requests
• Assigning vendors and technicians
• Monitoring conditions and providing photo documentation
• Coordinating with contractors and insurance adjusters
• Assisting owners with claims filing (if needed)
• Keeping homeowners informed every step of the way

Most importantly, we act fast — and with transparency. If an estimate exceeds your NTE (Not-To-Exceed) limit, we’ll reach out immediately with full context and next steps.

Meridian’s Homeowner Insurance Recommendations

Meridian has worked with thousands of investors over the years and consistently recommends that property owners carry adequate insurance tailored for long-term rental homes. For nearly a decade, we have referred investors to the Ayres Brackfield Insurance Agency (ABI), known for their excellent service and investor-specific coverage options.

We recommend the following:

• Coverage Type: Choose replacement-cost coverage to ensure full repairs in the event of damage. Most investors select broad-form coverage for a strong balance of affordability and protection.
• Deductibles: Higher deductibles ($2,500 or $5,000) can lower premiums, especially helpful for owners with multiple properties.
• Liability Limits: Most investors opt for $1,000,000 in general liability coverage due to the modest cost increase compared to $500,000.
• Covered Perils: Be sure your policy protects against key risks like water damage, wind/hail, and liability from pet-related incidents.
• Roof Protection: Ask your agent whether roof replacement is covered at full cost or depreciated value.
• Lost Rent: Verify whether your policy includes compensation if a tenant must vacate during repairs.

Insurance premiums may vary based on property characteristics (age, construction material, proximity to fire stations) and your own claim history. Our team is happy to assist you with securing quotes and ensuring your coverage aligns with your goals.

To request a no-obligation quote, we encourage you to contact:

• Pamela Karnes at ABI
• 📧 [email protected]
• 📞 865.288.4288

Expert Advice about Homeowner Insurance for Investors

Here are two recommendations from Pamela Karnes, a premier homeowner insurance agent:

“For liability claims, always make the tenant carry their own tenant policy and put the owner as an additional insured on the policy.” *

“The best way to prevent claims is to hire a good property manager that checks on your property. You want a company that is regularly inspecting roofs and checking that gutters and downspouts are clean. While an annual inspection may sound like privacy invasion, it can really help a homeowner stay ahead of water leaks and other issues.” **

* Every Meridian tenant is required to carry their own renter’s insurance to protect our investors.

** Meridian Property Management regularly checks on properties and is pro-active about maintenance and claims.

Insurance Insights and the Greater Memphis Area

Memphis is one of the most stable and cost-effective areas in the country to own property. Unlike markets in California or Florida, where homeowners face soaring premiums due to wildfires, hurricanes, or flooding, Memphis is comparatively shielded from large-scale natural disasters. We’re not on a fault line, we’re far from the coast, and major catastrophes like fires or hurricanes are virtually nonexistent here.

While tornadoes are a consideration across parts of the Southeast, Memphis itself experiences relatively fewer direct hits, especially compared to Tornado Alley in the Plains states. And because overall property damage is low, homeowners insurance in Memphis remains more affordable than in many high-risk markets.

In fact, the average homeowners policy in California is now well over $4,000 per year—and rising rapidly due to wildfire risk—while Memphis remains a pocket of predictability for both insurance rates and long-term property performance.

For real estate investors, that means better margins, lower holding costs, and fewer headaches.

Average Annual Insurance Premiums

** According to Insure.com, the average homeowners insurance premium in Memphis is approximately $3,931/year for a $300,000 policy. That is NOT what we have found to be true for our properties.

Choosing the Best Value for Liability Limits

Most investors are opting for the $500K in protection due to the much higher cost of the $1M coverage. However, to offset this, they’ll increase their umbrella insurance policy to make up for that lost liability coverage. This seems to be the most cost-effective strategy for adequately protecting investors. Please reach out to Pamela to learn more and get a custom quote.

Memphis is a Market Built for Long-Term Success

With strong fundamentals, favorable rental demand, and relatively low weather-related risk, Memphis remains a prime market for investment in single-family rentals. The city’s inland geography offers peace of mind, while its growing economy and population continue to attract qualified renters seeking long-term stability.

Whether you’re an out-of-state investor looking to diversify or a local buyer seeking predictable returns, you’ll benefit from Memphis’s combination of affordability, insurability, and hands-off property management.

Why Memphis Is A Strategic Choice for Real Estate Investors

At Meridian Pacific Properties, we’ve spent years evaluating U.S. markets to identify the best regions for long-term, profitable single-family rental (SFR) investments. Out of more than 360 Metropolitan Statistical Areas (MSAs) we studied, Memphis consistently ranked as a top performer — and not just in one or two categories, but across every critical factor that matters to investors.

Our National Analysis

Using a proprietary formula that weighs key market indicators — including population growth, rental demand, economic stability, home price appreciation, and climate resilience — we conducted a thorough nationwide review of potential submarkets. Many popular cities had strong returns in one or two areas but were ultimately disqualified by high risk profiles, extreme weather, or unstable tenant bases.

Memphis stood out because of its rare combination of:

• 📈 Stable Appreciation — Consistent home value growth over time
• 🌤️ Favorable Weather — Minimal exposure to catastrophic events like wildfires or hurricanes
• 💸 Affordable Entry Points — Lower purchase prices compared to major metros
• 🏘️ High Quality Neighborhoods — Strong rental demand from families and professionals
• 🧾 Investor-Friendly Tax Environment — No state income tax in Tennessee and some of the lowest property taxes in the region
• 💼 Proximity to Major Employers — Including FedEx, St. Jude, Blue Oval City, and other economic drivers
• 🔍 Transparent and Hands-Off Property Management — So you can invest confidently from anywhere in the country

For investors looking to maximize returns without the volatility and risk of coastal or disaster-prone markets, Memphis offers a strategic opportunity that’s hard to match. Whether your priority is appreciation, cash flow, or long-term security, Memphis delivers.

Interested in single-family rental properties?

We’re here to help you invest smarter — and sleep better. For information about our properties, management services, or the Memphis market, reach out to:

📧 [email protected]
📞 (858) 876-2232