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 user-friendly mobile app? Once you determine what factors matter most 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 ratings 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 national and regional carriers 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 above Kentucky’s average, Allstate’s homeowners insurance may be a good fit if you are looking for customizable coverage. The Illinois-based 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 Allstate’s numerous discounts. Allstate tied with State Farm for having the lowest J.D. Power customer satisfaction score on our list of best companies. It also has the most expensive average premium by several hundred dollars. Allstate is financially stable and carries an A+ (Superior) financial strength rating from AM Best.
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 customer service score from J.D. Power of the companies on our list, indicating that its policyholders are typically satisfied with its service. However, the Michigan-based super-regional carrier only sells coverage in 26 states. Auto-Owners carries an A++ (Superior) financial strength rating from AM Best, the highest rating available.
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 coverages to help you build the policy you need, like home day care coverage and identity fraud protection. 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. While Kentucky Farm Bureau is not rated by J.D. Power, the Louisville-headquartered company carries an A (Excellent) financial strength rating from AM Best.
Learn more: Farm Bureau Insurance review
State Farm
If you like working with a local agent, State Farm could be a good choice. The company has agents across the Bluegrass State 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 home’s 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. The Illinois-based carrier is rated A++ (Superior) by AM Best.
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 active-duty and veteran military members and their immediate families, USAA consistently receives exceptional customer satisfaction scores from its policyholders. 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. In addition to home insurance, USAA offers auto, life, online banking and retirement plan programs. The Texas-based carrier holds an A++ (Superior) financial strength rating from AM Best.
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, due to the increased risk of property damage from natural disasters like tornadoes, convective storms, flooding and wildfires.
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 are higher due to the state’s risk of weather-related property damage, 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 property damage. Following are several of the common causes of property claims in Kentucky, as well as home insurance coverages that you may want to consider to ensure you are financially protected from these potential hazards.
Common causes of loss in Kentucky
Kentucky is prone to extreme weather year-round, including heavy snow, ice, freezing temperatures, flooding, tornadoes and even the impact of 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 inland states hit by Hurricane Ike. And in September 2017, Hurricane Harvey tore through the Southeast and its remnants reached Kentucky, causing over 76,000 total storm claims that equated to more than $8.9 million in insured losses, according to the Insurance Information Institute (Triple-I). Although Kentucky is not a coastal state, it is prone to the effects of damaging winds and torrential rains from hurricanes that form in the Gulf of Mexico, as well as other major storms which can cause widespread property damage and catastrophic flooding.
- Severe winter weather: Kentucky is no stranger to heavy snow, freezing temperatures and ice storms in the winter months. 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, averaging over 46 inches a year. Heavy rain and melting snow can cause flooding, which can cause water damage. The state experienced several deadly flash flood events throughout 2021.
- 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 thunderstorms can break windows, damage roofs and pull off your siding, which can lead to catastrophic 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 to others 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 standard homeowners insurance policies, so you might want to purchase flood insurance as a separate policy. Most likely, your home insurer offers flood insurance underwritten through the federally-backed National Flood Insurance Program (NFIP). Several dozen private insurers also offer flood coverage, sometimes with higher limits and better rates than NFIP. Some carriers offer a flood insurance endorsement that can be added to your homeowners insurance policy. If you live in a federally designated flood zone or have a mortgage, you may be required to purchase flood insurance. As the Triple-I indicates, 90% of U.S. natural disasters involve flooding, so this additional coverage is worth considering.
- Windstorm coverage: Kentucky homeowners insurance policies generally include windstorm damage as basic coverage and do not require you to carry a separate windstorm deductible for tropical cyclones like homeowners policies in coastal states.
- 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 you to carry it. Either way, having homeowners insurance is widely considered an important step in ensuring you and your family are financially protected from the risk of catastrophic losses. Without it, you are responsible for paying out of pocket to repair or rebuild your home after a loss, which could be financially devastating.
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 at a cost you can afford.
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 borders the New Madrid Fault Line. Adding earthquake coverage to your policy may bring you additional financial 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. Insurers use numerous rating factors to determine your premium, including replacement cost of your home, as well as your credit-based insurance score, claims history, the deductible you choose and proximity to a local fire station and fire hydrants.
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.
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