Best cheap homeowners insurance in Louisville

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Louisville homeowners don’t have as many perils to worry about as homeowners along the Gulf Coast might. However, Kentucky is still vulnerable to flooding and destructive tornadoes. The average cost of Louisville Kentucky home insurance is $1,693 per year for a policy with $250,000 of dwelling coverage. To find yourself on the low end of the state’s average cost of home insurance, you’ll need to know what companies offer cheap home insurance in Kentucky and what discounts are available.

Best home insurance companies in Louisville

Bankrate narrowed down the list of insurance providers to the five best home insurance companies in Louisville. Factors used to narrow the field included average policy pricing, customer ratings and coverages that work for area residents.

Home insurance company Average annual premium for $250,000 liability J.D. Power Score
Cincinnati Insurance $944 NR
AAA $1,088 820/1,000
USAA $1,114 889/1,000
Auto-Owners $1,253 843/1,000
Nationwide $1,414 808/1,000

Cincinnati Financial Insurance

Cincinnati Financial home insurance coverage may be the most affordable home insurance and ideal for first-time homebuyers. Policies are organized into two packages for homes worth $500K or higher and a standard HO-3 for homes of all values. You can add earthquake insurance, identity theft expense and advocacy services that provide you with a professional who can help you with legal issues.


If you’re a AAA member simply for the roadside assistance, you can also buy home insurance and get 5% off your policy. Your AAA home policy covers the basics, plus jewelry up to $1,500, spoiled food caused by a power outage and legal/medical bills if your pet bites a guest who entered your property.

Learn more: AAA Insurance review


Like AAA, USAA only provides insurance to members. However, USAA’s requirements rule out more people than AAA. To access quality low-cost, quality home insurance from USAA, you’ll need to be a member of the armed forces, a veteran or an immediate family member. Besides the basic types of coverage you’d expect from a major insurance carrier, USAA sells flood insurance, which is not included in an HO-3 policy.

Learn more: USAA Insurance review


Auto-Owners Insurance is best-known for car insurance but also sells homeowners coverage. Going with a basic policy costs Louisville homeowners an average of $1,253 per year, which is one of the five cheapest premiums in the area. In addition to basic coverage, you can buy add-ons such as jewelry or collectible endorsements, increased limits for food spoilage or guaranteed replacement value.

Learn more: Auto-Owners Insurance review


Nationwide’s average annual premiums are $1,414 per year for Louisiville homeowners. You’ll have a few options to upgrade basic home coverage. Brand New Belongings coverage is the company’s equivalent to guaranteed replacement cost, which reimburses you for lost items with a new version of the property. Better Roof Replacement coverage will upgrade your roof’s materials when it’s time to replace it.

Learn more: Nationwide Insurance review

Home insurance considerations in Louisville

Home insurance in Kentucky is optional unless you pay for a home mortgage. Although coverage isn’t required, insurance experts believe that having home insurance is a smart financial decision. The cost of rebuilding your home if it is lost in a fire will most likely far exceed the annual insurance costs. Coverages you should consider adding include:

  • Jewelry or high-value item endorsement: Home insurance limits the amount you’ll receive if collectible or hard-to-replace items are lost or stolen. For items with a combined value of over $1,500, a scheduled personal property endorsement can help you receive reimbursement for the stated cost of the item.
  • Flood insurance: Flood insurance is not included in a standard HO-3 policy. Buying flood insurance will help to protect you financially from water damage due to hurricanes or heavy rainstorms.
  • Guaranteed replacement cost: Home policies will reimburse you for the replacement of property after deducting depreciation. Upgrading to guaranteed replacement cost usually allows you to buy a new version of the damaged or stolen property.

Home insurance discounts in Louisville

Taking advantage of as many carrier discounts as possible can add up. Some of the more significant ways to save on Louisville KY home insurance are:

  • Claims-free discount: You may be able to earn a discount based on the length of time since you last filed a claim.
  • Home safety: Carbon monoxide detectors, smoke alarms and home security systems can all help you earn a reduction on your home insurance.
  • Bundling: Buy multiple types of insurance with one insurance company to potentially receive a discount on all your coverages.
  • New home: If you live in a new-build home, your home insurance will hopefully be cheaper than if your home was twenty years old or older.

Frequently asked questions

How much does home insurance in Louisville cost?

The average cost of Louisville, Kentucky home insurance is $1,693 per year for a home insurance policy with $250,000 in dwelling coverage.

What is the best home insurance company?

The best home insurance company in Louisville depends on the level of coverage you need and your budget. To find a carrier that works for you, get quotes from several home insurance providers to compare and select one.

What is an HO-3?

An HO-3 is the industry term for a standard home insurance policy. It includes 16 named perils for your property and claims for any peril not listed as excluded in the policy.


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
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN,, and She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.