Best homeowners insurance in Kentucky in 2021

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Kentucky residents will pay an average of $1,839 per year for $250,000 in dwelling coverage. Buying home insurance in Kentucky may be a smart move, considering that central Kentucky experiences some of the world’s most extreme weather, according to the National Weather Service.

Luckily, the Bluegrass State is home to several top home insurance companies. In this article, Bankrate’s insurance editorial team analyzed extensive data and found the top Kentucky home insurance companies to be Allstate, Auto-Owners, Kentucky Farm Bureau, State Farm and USAA.

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 coverages, an in-person agent or policy features like a mobile app? Once you know what matters to you, you can begin getting quotes.

To determine the best home insurance companies in Kentucky, Bankrate’s team took a diversified approach. We consulted a third-party customer satisfaction survey from J.D. Power, along with third-party financial rankings from AM Best and Standard & Poor’s (S&P). We also analyzed coverage options and the latest premium data from Quadrant Information Services.

Based on our research, the following five companies may be a good place to start if you are searching for Kentucky home insurance.

Home insurance company Average annual premium for $250k dwelling J.D. Power score
Allstate $2,710 829/1,000
Auto-Owners $1,523 843/1,000
Kentucky Farm Bureau $2,464 Not rated
State Farm $2,033 829/1,000
USAA* $1,100 889/1,000

*USAA does not qualify for official ranking with J.D. Power due to eligibility restrictions

Allstate

Although its average premium is the highest on our list and far higher than Kentucky’s average, Allstate’s homeowners insurance may be a good fit if you are looking for customizable coverage. The company offers numerous optional coverages, including water backup, scheduled personal property and electronic data recovery. You may also be able to lower your premium with one or more of the company’s discounts. In terms of cons, Allstate tied with State Farm for having the lowest customer satisfaction score on our list. It also has the most expensive average premium by several hundred dollars.

Learn more: Allstate Insurance review

Auto-Owners

Auto-Owners offers an average premium well below Kentucky’s average and there are several options for add-on coverage, including guaranteed home replacement cost and equipment breakdown coverage. Auto-Owners earned the highest official rank from J.D. Power of the companies on our list, indicating that its policyholders are typically satisfied with its service. However, the company only sells coverage in 26 states.

Learn more: Auto-Owners Insurance review

Kentucky Farm Bureau

Becoming a member of Farm Bureau opens the door to purchasing the company’s insurance products, as well as financial and investing planning services. Farm Bureau offers all the standard home insurance coverages along with optional coverage to help you build the policy you need, like home day care coverage and identity fraud expense. The company’s average premium is the second-priciest on our list. However, Kentucky Farm Bureau offers discounts at retailers such as Sherwin-Williams and Office Depot, which may be attractive to some customers.

Learn more: Farm Bureau Insurance review

State Farm

If you like having a local agent, State Farm could be a good choice. The company has agencies across Kentucky who may be more in tune with the needs of Kentucky homeowners since they live in the state themselves. State Farm focuses on damage prevention with its Ting partnership, which provides a free electrical system monitoring device to eligible policyholders. The device monitors your wiring system and may be able to alert you to problems before they start a fire. State Farm has the third-priciest average premium on our list and only offers a few discounts.

Learn more: State Farm Insurance review

USAA

Although it is not eligible for official ranking with J.D. Power because it only sells coverage to current and retired military members and their immediate families, USAA consistently receives high customer satisfaction scores. If you are looking for a company with excellent service and you qualify for coverage, USAA could be a good fit. The company’s premium is the lowest on our list. USAA also partners with ADT, which may save you money on an alarm system and on your insurance premium.

Learn more: USAA Insurance review

How much is homeowners insurance in Kentucky?

In Kentucky, the average cost of homeowners insurance is $1,839 per year for $250,000 in dwelling coverage. In comparison, the national average is $1,312 per year. Kentucky homeowners, on average, pay over $500 more for home insurance, likely due to the increased potential of damages that the state’s homes can go through from natural disasters.

Kentucky has a higher average homeowners insurance premium compared with neighboring states. Indiana homeowners pay an average of $1,150 per year, while homeowners in Tennessee pay $1,625 annually, on average. Kentucky’s premiums may be higher due to the state’s risk of weather-related damages, including wind damage caused by tornadoes and water damage caused by heavy rains.

Home insurance in Kentucky

Homeowners should consider Kentucky’s varied weather conditions when searching for home insurance. The weather in the Bluegrass State can create dangerous conditions that can lead to damage. Below are several of the common claims in Kentucky, as well as home insurance coverages that you may want to consider.

Common causes of loss in Kentucky

Kentucky gets hit with extreme weather year-round, including heavy snow, ice, freezing temperatures, flooding, tornadoes and hurricanes. These types of weather events can cause extensive damage to the interior and exterior of homes.

For example, in September 2008, Kentucky was one of many states hit by Hurricane Ike. And in September 2017, Hurricane Harvey tore through the southeast and reached Kentucky, causing over 76,000 total paid losses that equated to over $8.9 million in damages. Although Kentucky is not a coastal state, the effects of hurricanes and other major storms can cause damage and lead to flooding.

  • Severe winter weather: Kentucky is no stranger to heavy snow, freezing temperatures and ice storms in the winter months. The National Weather Service even reported that central Kentucky has some of the most extreme weather conditions on the globe. These conditions can cause damage to your pipes, causing them to freeze and burst.
  • Flooding: Kentucky ranks in the top 15 states with the most rainfall. Heavy rain and melting snow can cause flooding, which can cause water damage.
  • Tornadoes and hurricanes: According to an NBC News analysis, Kentucky ranks eighth in states with most natural disasters. Strong winds from tornadoes, hurricanes and summer storms can break windows, damage roofs and pull off your siding, which can lead to damage inside your home as well.

Understanding the common types of claims in your area may help you choose coverages that are appropriate for your needs.

Home insurance coverage options in Kentucky

If your home is damaged or destroyed by a covered peril, your policy’s hazard insurance is designed to cover it. Other standard coverages such as personal property, liability and medical payments are there to provide additional protection. However, with the common causes of loss from weather-related disasters in Kentucky, homeowners may want to consider purchasing additional coverage. These include:

  • Flood insurance: Flood damage is not covered under basic homeowners insurance policies, so you might want to purchase flood insurance as a separate policy. Flood insurance is available through the National Flood Insurance Program and from some private insurers. Some carriers offer a flood insurance endorsement that can be added to your homeowners insurance policy. If you live in a flood zone or have a mortgage, you may be required to purchase flood insurance.
  • Wind damage coverage: Although homeowners insurance policies generally cover wind damage automatically, your policy may have a separate wind deductible. You may want to talk to your company about how your policy would respond to wind damage before your home is damaged so that you are prepared.
  • 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.

Frequently asked questions

Do I need homeowners insurance in Kentucky?

Homeowners insurance is not legally required in Kentucky. However, if you have a mortgage, your lender will likely require it. Either way, having homeowners insurance is widely considered an important step in your financial planning. Without it, you are responsible for paying out of pocket to repair or rebuild your home after a loss. These out-of-pocket expenses can grow rapidly and could lead to financial devastation. Homeowners insurance is designed to protect you from this risk.

What is the best homeowners insurance in Kentucky?

No single insurance company in Kentucky is the best choice for everyone. Every company offers different coverages, different discounts and different rates, and each homeowner’s situation is unique. It is important to shop around to find the provider that can offer you a policy that best fits your needs.

Does my homeowners insurance cover earthquakes?

Damage caused by earthquakes is not typically covered by a standard home insurance policy, but can often be added as an endorsement. Although you may not associate Kentucky with earthquakes, the western part of the state does border the New Madrid fault. Adding earthquake coverage to your policy may bring you peace of mind.

How much is home insurance per month in Kentucky?

The average cost of home insurance per month in Kentucky is $153. However, your premium will vary based on your individual circumstances and how much insurance you need.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with nearly a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor