Kentucky Homeowners Insurance Quotes (2023)

Kentucky is home to beautiful landscapes — rolling hills, forest greenery, ridges, and valleys. But along with the lovely views, Kentucky homeowners also face a higher-than-average risk of a number of natural disasters, including landslides, tornadoes, and flooding. And these risks often affect homeowners insurance premiums in the state.

Home insurance in Kentucky costs an average of $237 per month, or $2,844 per year. The best insurers to protect your home in the Bluegrass State include Nationwide and Grange, among others. Here’s what you need to know when getting your home insured in Kentucky.

Best home insurance companies in Kentucky

A number of great insurance companies serve Kentucky homeowners, and finding the best one for you depends on factors like your specific home, financial situation, and coverage needs. Here are some of the best homeowners insurance providers for Kentucky homeowners based on several criteria.

Best large insurer: Nationwide

Nationwide Insurance works to live up to its advertising claim of being “on your side.” Homeowners with Nationwide policies are quite satisfied with the insurer, leading to a J.D. Power Customer Satisfaction score of 816 out of 1,000.^[1]

Unfortunately, getting Nationwide coverage in the Bluegrass State is a bit expensive. The average cost is $276 per month, or $3,312 annually. This is higher than the statewide average of $237 per month.

Best insurer for cheap rates: Grange

Regional insurer Grange Insurance offers the least expensive home insurance rates in Kentucky. A policy with Grange costs an average of $143 per month, or $1,716 per year, which is significantly lower than the state average of $237 per month.

This insurer also provides a number of optional coverages to help you completely protect your home and family. These coverages include underground service line coverage, equipment breakdown coverage, identity theft insurance, personal cyber insurance, backup of sewers and drains coverage, and protection for a loved one’s personal belongings if they’re in assisted living care.

Best for wind damage coverage: Amica

Kentucky is vulnerable to several types of natural disasters, according to FEMA’s National Risk Index. The most common disasters include flooding and landslides, which require insurance separate from traditional homeowners insurance policies. However, Kentucky homeowners also regularly experience damage from strong winds, and the state sees damaging weather events like derechos, tornadoes, and severe thunderstorms annually.

With that in mind, homeowners in the Bluegrass State may want to look into Amica Mutual for their insurance. Not only is Amica the highest-rated home insurer for customer satisfaction according to J.D. Power, with a ranking of 849, but the company also offers a service known as Contractor Connection, which helps homeowners find licensed contractors for home repairs.

Best insurer for high-value homes: Chubb

Homes with values between $750,000 and $1 million often need high-value homeowners insurance policies. Chubb’s Masterpiece Coverage policy offers extended replacement cost and a cash settlement in the event of a covered total loss. This policy also helps cover things like tree removal, lock replacement, and risk consulting. Customers are generally quite satisfied with Chubb, and the insurer has a J.D. Power Customer Satisfaction score of 809 out of 1,000.^[1]

Best regional insurance company: Kentucky Farm Bureau Insurance

Founded in 1919 in Louisville, the Kentucky Farm Bureau is one of the largest farm bureaus in the nation. The company has included homeowners insurance since 1943, and it’s the largest property and casualty insurance company in Kentucky, with an agency located in each of the state’s 120 counties. Kentucky Farm Bureau Insurance boasts an A.M. Best rating of A (Excellent) and a BBB rating of A+.^[5]

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

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:

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:

• Earthquakes

• Floods

• Landslides

• Nuclear accidents

• Neglect

• Mold and fungus

• Pest damage

• 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.

Your deductible

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.

What are the cheapest home insurance companies in Kentucky?

The three cheapest homeowners insurance providers in Kentucky are Grange, with an average monthly premium of $143, Liberty Mutual, with an average of $154, and State Auto, with an average of $157. All three of these insurers are significantly less expensive than the Kentucky average of $237 per month.

The least expensive insurance may not be the best for your situation, however, since you need to get adequate coverage for your home’s specific needs. You can ensure your coverage needs are met at an affordable price by shopping around to compare quotes before you buy.

How much homeowners insurance do you need in Kentucky?

Homeowners in Kentucky aren’t legally required to carry homeowners insurance, but if you have a mortgage, your mortgage lender will usually require you to purchase a policy. This protects your mortgage lender’s financial interest in your home. And even if you’ve paid off your mortgage completely and have no lender requiring insurance, carrying homeowners insurance is still a good idea to protect your assets.

The majority of homeowners insurance policies have several standard coverage components, and understanding them is key to finding the policy that meets your needs.

What home insurance coverages should you buy in Kentucky?

Six standard home insurance coverages are available, which are delineated by the letters A through F.

• Coverage A — Dwelling coverage: This pays for damage to the structure of your home.

• Coverage B — Other structures: This protects you against loss to unattached structures on your property, such as a detached garage or tool shed.

• Coverage C — Personal property: This coverage pays for your personal belongings affected by the loss. However, you may need additional coverage for very valuable items, such as jewelry, firearms, antiques, or furs.

• Coverage D — Loss of use: If your home is uninhabitable or parts of the home are made unusable, this coverage will help pay for your additional living expenses while you rebuild.

• Coverage E — Personal liability: This will provide coverage if you or another resident of your home is legally responsible for an injury to someone else or damage to their property.

• Coverage F — Medical payments to others: If someone is accidentally injured on your property, this type of coverage will pay for their medical expenses, regardless of fault.

What optional home insurance coverages should you buy in Kentucky?

Though standard homeowners insurance coverage will pay for damage from a number of potential perils, it doesn’t necessarily cover the perils most likely to affect Kentucky residents. 

Personal finance expert John Pham, founder of the site The Money Ninja, explains that standard homeowners insurance doesn’t protect against damages from events like earthquakes and floods, and forgoing supplemental coverage for these perils can be devastating. 

“I’ve seen many homes damaged in California by earthquakes and homes in Florida damaged by floods that weren’t protected from these events,” Pham says. “It was shocking for homeowners who thought they were protected.”

In particular, many homeowners in the Bluegrass State may need flood insurance or “difference in conditions” insurance, especially if they live over karst. They may also need to purchase a sinkhole insurance rider for their homeowners insurance.

Here’s some more information on these common Kentucky perils:

• Flood insurance: The vast majority of insurance companies don’t offer coverage for flood damage, but flooding is a common peril for Kentucky homes built over karst, which underlies about half of the state. Any homeowners who live over karst or in a floodplain will need to get separate flood insurance coverage, either through a private insurer or the National Flood Insurance Program.

• Landslide insurance: Kentucky has a relatively high risk of landslides, and traditional homeowners insurance doesn’t cover damage to your home from a landslide. And neither does earthquake insurance. You’ll need to purchase a “Difference in Conditions” policy (covering landslides, mudflows, earthquakes, and floods) to protect your home from this peril, according to the Insurance Information Institute. You’ll likely have to purchase this kind of policy from a surplus lines insurer. Your insurance agent can help you locate one.

How much home insurance coverage should you have in Kentucky?

The amount of insurance coverage Kentucky homeowners need varies greatly from one homeowner to the next. That’s because no two homes, homeowners, or locations have the exact same risk factors. To figure out the right coverage for your needs, consider the following:

• Your home’s value: How much will it cost to rebuild your home?

• Your home’s location: What perils are you likely to encounter?

• Your additional risk factors: What other expenses would you struggle to pay for in the event of a loss or damage? How might you be financially vulnerable?

Shopping around and comparing no fewer than three insurance quotes from different companies will help ensure you find the policy that best fits your needs and budget.

What are some of the biggest risks when owning a home in Kentucky?

Three common perils facing Kentucky homeowners include:

• Wind damage: Kentucky experiences multiple weather phenomena that can cause strong winds, including thunderstorms, tornadoes, and derechos. Traditional homeowners insurance does pay for damage due to wind, so homeowners in the Bluegrass State can feel confident that they’re prepared, no matter which way the wind blows.

• Landslides: Kentucky Emergency Management estimates approximately 95 landslides occur in the state annually. Unfortunately, landslides aren’t covered either by traditional homeowners insurance or earthquake insurance riders. Homeowners must purchase a “Difference in Conditions” policy to protect against landslides and mudflows, although this kind of policy also covers earthquakes and floods. Kentucky doesn’t maintain a list of insurers offering this type of policy, so homeowners may need to ask their insurance agent for a referral.

• Sinkholes: The karst underlying about half of Kentucky can lead to sinkholes, which standard homeowners insurance doesn’t cover. An average of 24 new reports of cover-collapse sinkholes are received each year, according to the Kentucky Geological Survey. You can purchase sinkhole insurance as an endorsement on your homeowners insurance policy, but you otherwise won’t be protected if a sinkhole develops on your property.

How can you save money on homeowners insurance in Kentucky?

You have several ways to reduce your homeowners insurance policy. Some of the most common strategies include:

Bundle

Get multiple policies with the same insurer, and the company will often offer you a discount on all of them.

Make your home more disaster-resistant

Home maintenance is an important part of homeownership, but it can also help reduce your insurance costs. Not only does preventive maintenance keep small problems from developing into claim-worthy catastrophes, but maintaining your home can also help protect you from the most common perils in your area. For example, Kentucky homeowners can grade their yards to help prevent erosion that might contribute to a landslide.

Improve your home’s security

Many insurers provide discounts to homeowners who add security devices to their homes. Some devices that might help you land a discount include burglar alarms, smoke detectors, fire extinguishers, fire alarm systems, and deadbolt locks.

Comparison shop

Comparing quotes from no fewer than three homeowners insurance providers can save you money. This will allow you to check which insurer has the best coverage options, discounts, and processes for your needs.

Average home replacement cost in Kentucky

The replacement cost of your home isn’t necessarily the same as the current value of your home. That’s because the replacement cost considers the actual cost in today’s dollars to rebuild your home using the same types of building materials. This includes how much it will cost to buy new items, like appliances, at their current price, rather than their depreciated value. It also includes the current cost of building supplies and construction labor. This replacement cost will be higher than the actual cash value of your home because the actual cash value includes depreciation.

Here are the average values for homes in four Kentucky cities:

Learn More: Homeowners Insurance Replacement Cost Calculator

Kentucky homeowners insurance FAQs