Best Homeowners Insurance in Kentucky for 2023 – Insurify

Plutus Award winner
12+ years writing about insurance and personal finance
Emily is a widely recognized expert on personal finance and has authored several personal finance books. She’s a frequent guest on national and regional media.
Read Editorial Guidelines
Featured in
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Read Editorial Guidelines
Featured in
Chartered financial analyst
12+ years in data analysis and marketing
Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.
Read Editorial Guidelines
Featured in
Updated March 20, 2023
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
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.
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.
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.
Includes protection against credit card and debit card fraud and forged checks
Offers a free review that periodically assesses your coverage to ensure you’re protected even if your situation changes
A+ (Superior) rating for financial stability from A.M. Best[2]
J.D. Power score of 816 is slightly lower than the industry average of 819[1]
Optional contents replacement cost coverage only pays the depreciated value of items until you submit receipts to get the difference covered
Can’t cancel policy online and instructions for canceling are hard to find
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.
Offers a wide variety of optional coverages
Rating of B++ (Good) for financial stability from A.M. Best[3]
A number of available discounts
No online purchase option
Not ranked by J.D. Power for customer satisfaction
Not available in all states; you may need to switch insurers if you leave Kentucky
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.
Highest J.D. Power Customer Satisfaction ranking in the industry
Rating of A+ (Superior) for financial stability from A.M. Best[4]
Many discounts available
Uses its own agents, rather than independent agents, which makes it more difficult to compare policies with other insurers
Doesn’t use local insurance agents; the closest agent to most Kentuckians is in Cincinnati
Discounts not available in all states, and Kentucky homeowners may not have access to all discounts
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]
Offers extra benefits that would require separate coverage from other companies
Offers flood insurance with a coverage limit of up to $15 million — significantly higher than National Flood Insurance Program limits
Provides a cash settlement if you decide not to rebuild or decide to rebuild somewhere else after a total loss
Premiums tend to be more expensive than average
Must contact an agent to get a quote
J.D. Power score of 809 is lower than the industry average of 819
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]
Offers optional coverage for water backup and sump overflow, identity theft, and in-home daycares
Several discounts available to homeowners
Offers separate policies for earthquake and flood insurance
Kentucky Farm Bureau membership required for coverage
Must contact an agent for a quote
Some mixed customer reviews online
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.
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.
When choosing a homeowners insurance policy, the policy form, coverage level, and deductible you opt for will all affect your rates.
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
You have several ways to reduce your homeowners insurance policy. Some of the most common strategies include:
Get multiple policies with the same insurer, and the company will often offer you a discount on all of them.
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.
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.
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.
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
Here are answers to several of the most commonly asked questions about homeowners insurance in Kentucky.
The average monthly cost of homeowners insurance is $237 in Kentucky. However, Kentucky homeowners may need to add some supplemental coverage to their standard policy to ensure they’re protected against the most common Kentucky perils.
At $237 per month (or $2,844 per year), the average cost of Kentucky homeowners insurance is much higher than the national average. The Insurance Information Institute reports that the average annual premium was $1,398 (or $116.50 per month) in 2021.
Why do Kentuckians pay more than double the national average? It may have to do with the high risk of strong winds in Kentucky, as well as the high prevalence of karst. Standard insurance covers wind damage, and homeowners in Kentucky are more likely to make a wind-related claim than the average American homeowner.
Actual cash value: Also known as depreciated value, this kind of coverage only pays out the cost required to make repairs, minus the depreciation due to age or use. It may not cover the cost to repair or replace the loss at today’s prices.
Replacement cost: This type of coverage will pay to replace or repair what you lost at today’s costs. This includes the cost to purchase new items at their current price, rather than the depreciated value.
Extended replacement cost: This coverage pays a certain percentage over the replacement cost, usually 20% or more. If there’s an unexpected spike in prices (because of a shortage of materials or workers, for example), the extended coverage will ensure you can afford to rebuild.
Kentucky Farm Bureau Insurance provides homeowners insurance coverage to more than 325,000 Kentuckians. That means almost 20% of the nearly 1.75 million Kentucky households get their insurance through Kentucky Farm Bureau.
While no law mandates homeowners insurance in Kentucky, mortgage lenders do require borrowers to carry homeowners insurance to protect the property. But even if you own your home free and clear, you should still carry homeowners insurance to protect your home and finances. That’s because this kind of coverage will provide you with the resources you need to rebuild if your home is damaged or destroyed, and it will also protect you if someone is injured on your property.
Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson.

Her work has appeared on The Huffington Post, Business Insider, Kiplinger's, MSN Money, and The Washington Post online.

She is the author of several books, including The 5 Years Before You Retire, End Financial Stress Now, and the brand new book Stacked: Your Super Serious Guide to Modern Money Management, written with Joe Saul-Sehy.

Emily lives in Milwaukee with her family.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Read Editorial Guidelines
Featured in
Chartered financial analyst
12+ years in data analysis and marketing
Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.
Read Editorial Guidelines
Featured in
Company
Resources

source


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *