One way to reduce homeownership costs is to make sure you’re getting the best rates on your home insurance. Comparison shopping is the best way to do that. We analyzed average home insurance rates for large home insurance companies in Kentucky to help you get started finding cheap home insurance.

Cheap Home Insurance in Kentucky Cost Comparison

Home insurance company Average annual home insurance cost in Kentucky
$1,218
Cincinnati Financial
$1,462
AAA Auto Club
$2,174
$2,182
Westfield
$2,236
Grange
$2,299
State Auto
$2,448
$2,544
$2,578
$2,640
$2,988
Kentucky Farm Bureau
$3,739
Source: Quadrant Information Services, based on dwelling coverage of $300,000

It’s smart to compare home insurance quotes when hunting for cheap homeowners insurance. Our analysis shows that homeowners insurance costs vary considerably from one insurance company to the next. You won’t know how much you can save until you shop around.

But don’t rely solely on price. The best homeowners insurance companies will also offer coverages that meet your specific needs.

Homeowners Insurance Cost Factors in Kentucky

Obtaining cheap home insurance in Kentucky will depend on several factors, such as:

  • How much it’ll cost to rebuild your home
  • Your location
  • What type of materials your home is made of
  • The fire rating of your home’s location
  • How old your structure is (the age of your home)
  • The claims history of your home
  • Your personal claims history
  • Your chosen policy coverage amount and limits
  • Your chosen deductible amount
  • Your credit

What Does Kentucky Homeowners Insurance Cover?

A standard Kentucky homeowners insurance policy (also known as an HO-3) covers your house structure for issues that aren’t excluded in the policy. Usual exclusions include sinkholes, mudslides, earthquakes, power failure, vermin and insect infestations, neglect, wear and tear and war.

Your possessions are protected for specific “perils” in a typical homeowners insurance policy. Fires, tornadoes, theft, vandalism and explosions are just some of the problems covered by home insurance.

A standard home insurance policy is comprised of these chief coverage types:

  • Dwelling: This portion pays to repair or rebuild your home if it’s damaged. It also covers attached structures, like a deck, porch or garage. Figuring out how much it costs to rebuild your house will help you determine how much home insurance you need.
  • Other structures: This coverage pays to repair or replace structures that are unattached to your home, like a patio, detached garage or carport, fence or shed.
  • Personal property: This pays to repair or replace your belongings after an issue like fire or theft. Your personal property includes items such as your furniture, clothes, jewelry, electronics and kitchen appliances.
  • Liability: This pays for injuries or property damage you or someone in your household accidentally do to others. For instance, if your child hits a baseball through your neighbor’s back window, liability insurance can pay for the damages or a court judgment against you if you’re sued. Liability insurance also covers your legal defense costs.
  • Medical payments to others: This covers minor medical claims made by people not in your household, regardless of fault. For example, if a visitor trips on a rake in your backyard and falls, medical payments coverage could pay for any resulting medical expenses. Coverage amounts are relatively small, such as $1,000.
  • Additional living expenses: If you’re unable to stay at your home due to an event covered by your policy (like a tornado), additional living expenses coverage pays for extra costs such as your hotel stay, restaurant meals and other necessary extra bills, like a laundry or pet boarding service.

What’s Not Covered by Kentucky Homeowners Insurance?

Common exclusions found in a standard homeowners insurance policy include events like sinkholes, floods, earthquakes, power failure, war, nuclear hazard, wear and tear, vermin and insect infestations, neglect and intentional loss.

It’s wise to carefully read your policy and understand what is excluded from coverage.

Flood Insurance in Kentucky

Your average home insurance policy won’t cover damage from floods. And with flooding becoming more prevalent, you may want to consider flood insurance if your property is at risk.

Financial assistance from the government after a flood can be limited. It’s best to have your own flood insurance to depend on. A majority of people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available.

FEMA’s Individuals and Households Program (IHP) can provide direct assistance and monetary support after a major disaster or emergency, if you qualify. This program helps people find housing after a problem directly caused by a disaster and isn’t covered by insurance or other sources.

Earthquake Insurance in Kentucky

Earthquakes are not common in Kentucky compared to severe storms or flooding but do occur now and then, and can be severe enough to cause damage.

According to the Kentucky Geological Survey, the state felt a strong 5.2 magnitude earthquake in 1980 that caused $3 million in damage. The state is near the New Madrid Seismic Zone, the most active earthquake zone in the eastern and central U.S. An earthquake doesn’t need to originate in Kentucky to cause damage.

If you want protection from earthquake damage, you’ll need to buy a separate earthquake insurance policy. A standard home insurance policy doesn’t cover earthquakes.

Earthquake insurance typically covers:

  • Personal property
  • Dwelling
  • Other structures
  • Additional living expenses

Earthquake insurance may have a separate deductible from your home insurance, usually between 10% to 25% of the dwelling’s policy limit.

Tips for Buying Homeowners Insurance in Kentucky

Whether you’re a first-time homebuyer or have owned your home for many years, you don’t want to overpay for your homeowners policy. You look to buy a policy at a reasonable price without sacrificing coverage or service. Here are guidelines for both newcomers and longtime homeowners:

  • Calculate your rebuilding costs. Ask an insurance agent or your insurance company for help when determining the cost to rebuild your home based on similar materials and local labor costs. You want your dwelling coverage amount to be at least equal to this amount.
  • Consider add-on coverage for your belongings. If you have pricey property such as expensive jewelry, antiques, sporting or musical equipment, you might want to schedule personal property in order to have them adequately covered.
  • Think about the benefits of replacement cost instead of actual cash value. Decide if replacement cost coverage is better for your home and belongings. With it, you’ll get the amount you need to replace your home and items with new versions, unlike actual cash value coverage, which pays only for depreciated values.
  • Determine how much liability coverage you need. It’s smart to buy a liability amount that matches your net worth, or the value of the assets that could be taken from you in a lawsuit. At least $300,000 is a good starting point.
  • Look for coverage gaps to fill. Many home insurance companies offer add-on benefits that you may want to take advantage of. For instance, coverage for sump pump backup is often available.
  • Research financial ratings. Check financial strength ratings from companies such as A.M. Best or Standard & Poor’s. Some financial institutions won’t finance your mortgage unless your insurance company has at least an “A” financial strength rating.
  • Ask for discounts. Talk to your agent to make sure you’re getting all the discounts you’re eligible for. For example, make sure you get a bundling discount if you have your home and auto policies with the same company. If you install a water leak detection system or a security system, see if you can get a discount from your home insurance company.
  • Compare quotes from multiple insurance companies. The cost for the same home coverage can vary significantly among insurance companies. If you don’t take the time to compare home insurance quotes, you won’t know how much you can potentially save.

Methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.