Best homeowners insurance companies in Kentucky for 2024

Compare the best home insurance companies in Kentucky

To begin your search for the best Kentucky homeowners insurance, you may want to decide what features you want in a company. Are you looking for the lowest price, certain coverage types, an in-person agent or policy features like a user-friendly mobile app? Many insurance experts recommend narrowing down what your priorities are before comparing quotes from various providers.

According to data provided by Quadrant Information Services, the average annual premium for homeowners insurance in Kentucky is $3,277. Using this information as a baseline, Bankrate looked to other metrics such as Bankrate Scores, J.D. Power’s 2023 U.S. Home Insurance Study and financial strength ratings from AM Best to find the best home insurance companies in the state. Based on our findings, you may want to check out Auto-Owners, Nationwide, State Farm, Travelers and Encompass.

The top 5 home insurance companies in Kentucky

Additional Kentucky home insurance companies to consider

Cincinnati Insurance

Kentucky Farm Bureau

Cheapest home insurance companies in Kentucky

When searching for affordable home insurance in Kentucky, it's important to consider various companies that offer competitive rates. While the cost of home insurance can vary based on several factors including location, home value and coverage needs, some companies consistently offer lower premiums than others. The upcoming table will display the top five companies in Kentucky known for their cost-effective home insurance solutions.

These companies have been selected based on their ability to provide economical options without compromising on essential coverage. This list can serve as a starting point for homeowners in Kentucky to find the best balance between affordability and comprehensive protection for their homes.

How to get cheap Kentucky home insurance

While you’re not mandated to carry home insurance by law, your mortgage company will almost certainly require you to maintain a certain level of coverage as you pay off your home. However, even those who own their homes outright may still want to consider purchasing homeowners insurance for enhanced financial protection.

If you're looking for the best cheap home insurance in Kentucky, the following steps may help:

• Figure out how much coverage you need: Knowing how much homeowners insurance you need might be the first step in securing an affordable policy. It's a delicate balance — you probably don't want to be over-insured (leading to a higher bill), but purchasing inadequate limits or endorsements could leave you vulnerable to high out-of-pocket expenses. Speaking to a licensed agent and making a home inventory might help keep you on the right track.
• Determine your priorities: Other than cheap rates, what else are you looking for in your homeowners insurance company? Do you work odd hours and need a company that offers 24/7 customer service? Perhaps you own a high-value home and need an extensive list of coverage add-ons. Determining your priorities may help you narrow down what companies to contact when you're ready to request quotes.
• Gather quotes: When you know what coverage, benefits and policy endorsements you need, it's time to gather quotes. Many Kentucky home insurance companies offer online quotes, but not all do. In that case, you'll need to contact an agent directly. However, even if you can request a quote online, sitting down with a licensed agent might be beneficial if you have any additional questions. Regardless of how you gather your homeowners insurance quotes, you may want to request the same (or similar) coverage levels across all companies. That way, you can accurately compare rates.
• Compare quotes: Once you've requested quotes, it’s time to compare. Although cheap rates are a priority for many, you may also want to consider other metrics, such as claims satisfaction and digital tool ratings.
• Purchase your policy: How you purchase your homeowners insurance depends on whether you're paying for it on your own or through your mortgage escrow. If you're purchasing the policy yourself, you will need to choose a payment plan, whether it be in installments or one lump sum. If you decide to pay for your policy in full, you may want to inquire about a pay-in-full discount, which is common among carriers. If you're paying for your policy through your escrow, you must follow some additional steps to ensure your lender is notified of your new coverage.

Best home insurance discounts in Kentucky

Taking advantage of home insurance discounts may be a powerful tool to ensure you’re paying the most competitive rate. Although each Kentucky home insurance company dictates its own discounts, some common ones may include:

How to save on home insurance policy renewals in Kentucky

When it comes to renewing your home insurance policy in Kentucky, there are several strategies you can employ to potentially lower your premiums. These tips focus on understanding your policy, making informed choices and leveraging certain factors that might reduce costs:

• Review and update coverage: Regularly assess your coverage to ensure it matches your current needs. Over time, the value of your home and possessions may change, and your policy should reflect these changes.
• Increase your deductible: Opting for a higher deductible can lower your premium, but ensure it's an amount you can comfortably pay in case of a claim.
• Inquire about discounts: Many insurers offer discounts for various reasons, such as installing security systems, being claims-free or bundling multiple policies (like auto and home insurance).
• Improve home safety: Implementing safety measures like smoke detectors, burglar alarms and weatherproofing can reduce the risk of claims and may qualify you for discounts.
• Review your credit score: In some cases, a better credit score can lead to lower insurance rates, so it's worth checking and improving your credit if necessary.

How much is home insurance in Kentucky?

According to our 2024 rate data, the average annual premium for a homeowners insurance policy in Kentucky with $300,000 in dwelling coverage is $3,277. This is quite a bit higher than the national average of $2,304. Kentucky is prone to extreme weather year-round, which could lead to more expensive claims and higher rates. In any given year, Kentuckians may endure heavy snow, ice, freezing temperatures, flooding, tornadoes and even the impact of hurricanes. These types of weather events can cause extensive damage to the interior and exterior of homes.

When compared to nearby states, Kentucky’s average homeowners insurance premiums are still some of the most expensive. In Indiana, for instance, the yearly average rate for $300,000 in dwelling coverage is $1,717. In Tennessee, the average rate for an equivalent policy is $2,312. While weather patterns likely contribute to Kentucky’s higher-than-average premiums, homeowners insurance companies use several additional metrics to calculate their rates, including credit-based insurance scores, claims histories, the cost of labor and materials in a given area and more.

Kentucky homeowners insurance rates by city

Homeowners insurance rates in Kentucky can vary significantly depending on the city. This variation is often due to factors such as local risk profiles, including susceptibility to natural disasters, crime rates and the overall cost of living in different areas. Understanding these differences is crucial for homeowners as they navigate insurance options across Kentucky. Below, you'll find a map and a searchable data table that provides a detailed view of homeowners insurance rates by city in Kentucky. This tool can be instrumental in helping you gauge the potential cost of insurance in your specific city or one you may be considering moving to.

*Rates are for $300,000 in dwelling coverage

What does home insurance cover in Kentucky?

A standard HO-3 policy, commonly purchased by homeowners in Kentucky, provides a broad range of coverages. This policy typically includes coverage for the dwelling and other structures on an open perils basis, meaning it covers all perils except those explicitly excluded. Personal property coverage under an HO-3 policy, however, is on a named perils basis, covering only those risks specifically listed in the policy.

For Kentucky, where certain natural events and accidents are more prevalent, the following covered perils from an HO-3 policy are particularly relevant:

• Hail or windstorms: Kentucky experiences severe weather conditions, including thunderstorms and tornadoes. Coverage for damage from hail or windstorms is crucial for homeowners in areas prone to these natural events.
• Weight of snow, ice or sleet: During winter months, Kentucky can face heavy snowfall. This coverage is essential as the weight of snow, ice or sleet can cause significant damage to the structure of homes.
• Accidental water overflow or discharge: This covers damage from accidental overflow or discharge from plumbing, heating or air conditioning systems. Given the range of temperatures in Kentucky, this coverage could be important for protecting against such mishaps.

Understanding the specifics of these perils and how they apply to your policy is important for Kentucky homeowners. Each peril covers different scenarios and knowing the extent of your coverage can help in effectively planning and responding to potential losses.

Additional home insurance coverage types in Kentucky

Kentucky has had 86 federally-declared disasters since 1953, with almost half of those occurring since 2000. Since Kentucky experiences a wide range of weather-related disasters, homeowners may want to consider purchasing additional coverage. This additional coverage may be in the form of an endorsement or a standalone policy.

• Flood insurance: A standard homeowners insurance policy does not cover flood damage. If you want this type of coverage, you must purchase flood insurance as a separate policy or, in rare cases, as an endorsement. Many people find flood coverage through FEMA’s National Flood Insurance Program (NFIP) or with one of the several dozen private insurers that offer flood insurance.
• Water backup coverage: If your home sustains damage due to water backing up in a sewer or drain line, this endorsement may help pay for the repairs. Water backups typically happen in basements or crawl spaces during heavy rains, but can happen from any blocked sewer or drain line.
• Identity theft coverage: Although not a weather-related event, identity theft is becoming more common. Adding this endorsement could help you with the costs associated with restoring your stolen identity.

Common Kentucky home insurance problems

Homeowners in Kentucky often face specific challenges when trying to secure home insurance. These issues largely stem from the state's geographic and climatic characteristics, which can affect the availability and cost of insurance coverage.

• Natural disaster risks: Kentucky is prone to various natural disasters, including floods, tornadoes and severe storms. This increased risk can lead to higher insurance premiums and sometimes limited coverage options, especially in areas most susceptible to these events.
• Older homes: A significant number of homes in Kentucky are older and may require more maintenance or updates to meet current insurance standards. Insuring older homes can be more challenging and expensive due to the increased risk of structural problems and outdated electrical or plumbing systems.
• Flood insurance limitations: Standard home insurance policies do not typically cover flood damage, a significant concern in flood-prone areas of Kentucky. Homeowners often need to purchase separate flood insurance, which can be an additional cost and a complex process.
• Insurance rate fluctuations: The home insurance market in Kentucky can experience rate fluctuations due to the state's susceptibility to natural disasters and economic factors. This variability can make it challenging for homeowners to find consistent and affordable coverage.

These challenges highlight the importance for Kentucky homeowners to thoroughly understand their insurance needs and options. Consulting with insurance professionals and conducting thorough research can help in navigating these common problems and securing appropriate coverage.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.