How much is homeowners insurance in Kentucky?
The cost of homeowners insurance premiums in Kentucky can vary depending on your home’s value, the type of home insurance policy you select, and the location of your home. In addition, your home’s size, age, and building materials, as well as the demographics of the people living in the home and your credit score, can all affect the cost of your homeowners insurance policy.
How your policy choices affect home insurance rates in Kentucky
When choosing a homeowners insurance policy, the policy form, coverage level, and deductible you opt for will all affect your rates.
Your policy form
Homeowners insurance comes in eight forms. Each form is designed to pay for damage caused by a predetermined set of “perils.”
HO-1 and HO-2 forms include “named peril” protection because they’ll only pay for damages incurred by perils specifically named in the policy. These policy forms tend to be the least expensive, but they’re also the least comprehensive.
Here are the perils they will cover:
|HO-1 and HO-2 Coverage||HO-2 Coverage Only|
|Fire and/or smoke||Falling objects|
|Explosions||Weight of ice, snow, or sleet|
|Lightning||Freezing of household systems, including HVAC systems|
|Hail and/or windstorms||Sudden and accidental damage to pipes and other household systems|
|Theft||Accidental discharge or overflow of water or steam|
|Vandalism||Sudden and accidental damage from artificially generated electrical current|
|Damage from vehicles|| |
|Damage from aircraft|| |
|Riots and civil commotion|| |
|Volcanic eruption|| |
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.
Learn More: What Does Home Insurance Cover and What Does It Exclude?
The majority of homeowners opt for HO-3 insurance, which offers “open peril” protection for your dwelling and other structures. An HO-3 policy will cover damages to your home caused by any dangers not specifically excluded by your insurance policy. However, your belongings are still only covered for the named perils.
There are several common exclusions:
Mold and fungus
General wear and tear
If you live in an area with a high risk of certain types of perils, your insurer will likely exclude those perils as well. You may need to purchase a separate policy to protect your home from these higher-risk perils.
In addition to HO-1 through HO-3, homeowners may choose an HO-5 policy, which provides open perils coverage for personal property and replacement cost coverage; an HO-7 policy, which is for mobile and other manufactured homes; and HO-8, which is a policy form for older homes.
The policy form you choose and which perils your policy covers and excludes can affect your premiums. It’s important to understand exactly which perils you’ll receive coverage for before you purchase a policy so you know you’re properly protected against the most likely perils in your location.
Read More: What Does Home Insurance Cover and What Does It Exclude?
Your coverage level
The amount of coverage you choose will affect the premium you pay. In general, higher coverage levels equal higher premiums. This is especially true for dwelling coverage, which pays for damage to the physical structure of your home; replacement cost, which pays to rebuild or replace your losses and increases in price with the value of your home; and liability coverage, which protects you if something happens to someone else on your property for which you’re legally responsible.
Insurance policies include a deductible amount, which is the amount of money you must pay before the insurance pays for the damage. For instance, let’s say you have a $500 deductible and make a claim for a repair that will cost $3,000. You’ll have to pay the first $500 toward that repair, and your insurance company will pay the remaining $2,500.
Opting for a higher deductible usually reduces your monthly premiums. However, it does mean you’ll need to pay a greater amount out of pocket when you make a claim. That’s why it’s important to choose a deductible you can afford.
How location affects home insurance rates in Kentucky
Where you live can make a big difference in the cost of your homeowners insurance premiums. That’s because different areas face different perils, including crime rates, weather considerations, and even the location of a power plant. In Kentucky, some of the location-specific perils include:
Karst: Kentucky is home to a number of caves, including Mammoth Cave, the longest known cave system in the world. This indicates the presence of something geologists call “karst,” which describes areas with caves, sinkholes, and springs. Karst lies beneath more than half of Kentucky and brings specific potential dangers, including flooding, cover collapse, and groundwater contamination. If you own a home over karst, that could affect your insurance rates.
Landslides: The eastern portion of Kentucky has a relatively high to very high risk of landslides, with the Kentucky Emergency Management estimating the state sees about 95 landslides annually.
Tornadoes: Jefferson County, where Louisville is located, has a high risk of tornadoes. This risk is higher than every other county in Kentucky, and 97.1% of other counties across the United States, according to FEMA’s National Risk Index.
Here’s a quick look at the rates you can expect to pay in four Kentucky cities based on the above and other factors.
|City||Average Monthly Quote|