Best cheap homeowners insurance in Lexington

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Over 55% of Lexington’s 324,000 residents are homeowners, meaning that finding the best cheap homeowners insurance in Lexington is something more than half the population will consider. The average annual cost of home insurance in Lexington, Kentucky is $1,381 for $250,000 in dwelling coverage, just slightly above the national average of $1,312 per year.

Overall, Lexington is a safe and affordable city to live in, but it could be costly to ignore the damage natural disasters cause in Kentucky when searching for home insurance. Homeowners insurance and discounts for Lexington residents can vary depending on numerous factors, but finding a great insurance company is more than possible after determining your needs. Bankrate’s insurance editorial team analyzed the top insurers in the area (based on market share), and selected the ones offering the best affordable home insurance Lexington has for residents.

Best cheap home insurance companies in Lexington

Lexington homeowners have a plethora of choices when it comes to choosing a company that works best for their particular circumstances. By comparing each company’s 2021 rates, discounts and customer satisfaction ratings based on the 2020 J.D. Power Home Insurance Study, Bankrate has determined the best cheap home insurance companies in Lexington.

Home insurance company Average annual premium for $250K dwelling J.D. Power score
AAA $791 825 / 1,000
Auto-Owners $1,042 843 / 1,000
State Farm $1,355 829 / 1,000
Travelers $952 803 / 1,000
*USAA $971 *889 / 1,000

*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.

AAA

AAA offers additional coverage options in addition to the standard homeowners coverage. These add-on possibilities include loss of use, flood insurance and home systems protections.

AAA also offers several discounts, starting with a discount for being an AAA auto club member. You can also save by bundling multiple policies, obtaining a new loan to buy a house, paying your premium in full, getting a new roof, having a claims-free history and more.

Auto-Owners

Auto-Owners insurance company offers several optional coverages, including guaranteed home replacement cost, water backup and extended personal property coverage. There are even special policies for high-value homes.

Lexington homeowners who decide to insure their home with Auto-Owners could save easily by purchasing coverage in advance of the current policy’s end date and having a history of consistent payments.

State Farm

State Farm is a great insurance carrier option for Lexington homeowners. As the largest home insurance writer in Kentucky, State Farm offers stability and numerous features, like great online tools. Additionally, State Farm also offers pet insurance through Trupanion, which offers unlimited medical insurance limits while you have your policy through State Farm.

Policyholders may be able to take advantage of some great discounts through State Farm, including home alert protection, impact-resistant roofing and higher deductible discounts.

Travelers

In addition to standard coverage, Travelers’ insurance policies offer additional coverages such as loss of use, which could help in the event of a tornado making your home inhabitable. Fortunately for Lexington residents, Travelers is also the second-cheapest provider on our list based on average rates in the city. It even provides the opportunity to apply several discounts to customers’ policies, including multi-policy, loss-free, protective devices, green home and new homebuyer discounts.

USAA

USAA is consistently one of the highest scorers in the customer satisfaction J.D. Power Study and offers very competitive rates. However, policies are offered exclusively to active and retired military members and their immediate families. For those that do qualify to use USAA’s services, the benefits may be well worth it. Not only is coverage affordable, but you can supplement standard coverage with identity theft, earthquake coverage and other add-ons.

Home insurance coverage options in Lexington

Having homeowners insurance is not a legal requirement, but it is almost always required by mortgage lenders and is highly encouraged for all homeowners. Home insurance protects your residence and finances in the event of a disaster, natural or otherwise. Lexington does experience severe weather and natural disasters such as tornadoes, floods and occasional earthquakes.

The following additional coverages may be beneficial for Lexington residents.

  • Earthquake insurance: Earthquakes are not highly common in Lexington, but they do happen and earthquake damage is rarely covered by standard homeowners insurance.
  • Flood insurance: Flood damage is not covered by standard homeowners insurance, so Lexington homeowners may want to consider purchasing flood insurance in addition to their standard policy. Many major insurance providers sell flood insurance, and it is also available through the federal National Flood Insurance Program.
  • Green rebuilding coverage: Some insurers offer optional coverage that allows you to use green building materials to replace or rebuild your property after a loss, something that could save you additional money in the long run.
  • Tornadoes: Living in Kentucky means you could experience tornadoes, as the state ranks 21st overall for most tornadoes in the country. While most standard homeowners policies cover tornado damage, consider checking that your policy offers adequate coverage to repair and rebuild if you experience a tornado.
  • Scheduled personal property coverage: Most of the time, standard home insurance policies have low limits for valuable items. It may be a good idea to consider additional personal property coverage for more coverage on your jewelry, art, electronics and other valuable items. The cost of the coverage is usually determined by how much personal property you choose to cover under this add-on.

Home insurance discounts in Lexington

While home insurance rates in Lexington are lower than the national average, homeowners usually always benefit from looking for discounts when they are available. There are several discounts available for Lexington homeowners, including:

  • Multi-policy: One of the easiest ways to obtain a discount is by using the same insurance carrier for your home, auto, life and any other insurance policies you have.
  • Safety measures: Installing a security device, smoke alarm and other protective devices in your home could earn you discounts from your insurance carrier.
  • New home: Newly built homes often qualify for additional discounts from your insurance provider.
  • Loss-free: If you have previously had homeowners insurance and have a claims-free record, this could work to your benefit.
  • Automatic payments: If you choose to have payments automatically deducted from your account each month, you could receive a discount on your policy.

Frequently asked questions

What is the best home insurance company?

The best home insurance company depends on numerous factors and determining which insurance company to go with is typically based on each homeowner’s circumstances and budget. Consider shopping around and getting quotes from several different providers before settling on a decision.

How much does home insurance in Lexington cost?

Homeowners insurance in Lexington, Kentucky costs, on average, $841 per year for $250,000 in dwelling coverage. Factors like credit score, claims history and ZIP code will cause homeowners insurance rates to vary, so obtaining multiple quotes may help provide a more accurate estimate.

How much home insurance do I need in Lexington?

The amount of home insurance needed in Lexington, Kentucky will vary depending on the cost of rebuilding your home if it sustains a total loss. You can speak to a licensed insurance agent to determine how much coverage you need to protect your home and finances.

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
Ashley Hubbard
Personal Finance Contributor
Ashley Hubbard has two years of experience in writing for insurance domains such as Bankrate.com, including auto and homeowners insurance. She has also worked in the industry as a collision estimator and in several auto body shops.
Edited by
Insurance Editor