Cincinnati Insurance and Allstate offer the cheapest home insurance in Kentucky, with statewide rates that average $118 and $122 a month, respectively. Price is important, but customer service and other factors also matter. Here’s the information you need to find the best homeowners insurance in Kentucky.
In this article
How much is home insurance in Kentucky?
The average cost of homeowners insurance in Kentucky is $2,414 a year, or $201 a month, according to our analysis of quotes for a typical home in every ZIP code in the state.
The average cost of home insurance in Kentucky is 38% higher than the national average of $146 a month. Among U.S. states, Kentucky has the 10th highest average home insurance rate.
Which are the cheapest home insurance companies in Kentucky?
Cincinnati Insurance offers the cheapest home insurance in Kentucky, charging an average $118 a month. The next best rates are available from Allstate, $122 a month, State Farm, $167 a month, and State Auto, $198 a month.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Cincinnati Insurance | $1,419 | $118 |
| Allstate | $1,465 | $122 |
| State Farm | $2,000 | $167 |
| State Auto | $2,382 | $198 |
| Average | $2,415 | $201 |
| Travelers | $3,609 | $301 |
| Kentucky Farm Bureau | $3,615 | $301 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Insurance companies analyze several factors about you and your home to determine your rate. These include:
- The age, location and construction style of your home
- The estimated cost of repairing or rebuilding your home
- Any safety or security features your home may have
- Your credit and insurance claims history
- The deductible and policy features you choose
- Any discounts you may qualify to receive
Since companies place different weights on each of these factors and offer different discounts, you may qualify for a significantly better rate with one company than you do with others.
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How to save on homeowners insurance
The best ways to save on homeowners insurance include comparing quotes to find the lowest rates and choosing a higher deductible.
Your deductible is the amount you pay on a claim before insurance funds kick in. If a hailstorm causes $5,000 damage to your home, and your policy has a $1,000 deductible, the first $1,000 in repairs comes out of your pocket, and the insurance company covers the remaining $4,000.
In Kentucky, increasing a policy’s deductible from $500 to $2,000 knocks $363 off the average annual cost of homeowners insurance, or about $30 a month.
| Deductible | Average annual rate | Average monthly rate |
|---|---|---|
| $500 | $2,531 | $211 |
| $1,000 | $2,415 | $201 |
| $1,500 | $2,296 | $191 |
| $2,000 | $2,168 | $181 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Since insurance companies in Kentucky use credit scoring to help determine your rate, you may often qualify for a lower home insurance rate by regularly paying your bills on time and avoiding excessive debt.
Which are Kentucky’s best homeowners insurance companies?
State Farm and State Auto have the best customer service ratings in Kentucky, but Allstate offers a combination of features that help make it the best overall home insurance company in the state.
Best overall: Allstate
Low rates, favorable customer service scores and flexible product offerings are among the qualities that make Allstate the best overall home insurance company in Kentucky.
Allstate’s standard homeowners policies meet the needs of most homeowners, while optional endorsements let you customize upgrades such as coverage for water and sewer backups and replacement cost coverage for your personal property.
Allstate’s optional Claim-Free Rewards and Deductible Rewards features provide additional savings when you avoid claims.
Best customer service: State Farm and State Auto
Among the companies in our analysis, State Farm has the highest overall customer satisfaction index ranking from J.D. Power, while State Auto has the best Complaint Index rating from the National Association of Insurance Commissioners (NAIC).
J.D. Power’s overall customer satisfaction index rankings are based on surveys asking customers to rate their home insurance company on interaction, policy offerings, price, billing process, policy information and claims.
State Farm has the highest satisfaction ranking, 835, followed by Allstate, 829 and Travelers, 800. The segment average is 825, based on a 1,000-point scale.
Cincinnati, State Auto and Kentucky Farm Bureau are not included in J.D. Power’s satisfaction index, but every insurance company has a Complaint Index rating from the NAIC.
The NAIC Complaint Index compares insurance companies by confirmed complaints, which are complaints that lead to a finding of fault. The National Complaint Index is 1.0. A company with a 2.0 Complaint Index has twice as many confirmed complaints as expected for a company of its size, while one with a 0.5 Complaint Index has half as many.
State Auto’s Complaint Index rating of 0.08 is lowest in our analysis, followed by Kentucky Farm Bureau, 0.1, and Travelers, 0.13. Each has about a tenth as many complaints as expected for a company of its respective size.
| Company | Overall satisfaction score | Complaint Index |
|---|---|---|
| Allstate | 829 | 0.43 |
| Cincinnati Insurance | Not included | 0.26 |
| Kentucky Farm Bureau | Not included | 0.1 |
| State Auto | Not included | 0.08 |
| State Farm | 835 | 1.01 |
| Travelers | 800 | 0.13 |
| Segment average/National Complaint Index | 825 | 1.0 |
| Sources: J.D. Power 2021 U.S. Home Insurance Study, National Association of Insurance Commissioners (2021 data) | ||
Most popular: State Farm
Even though State Farm does not have the lowest rates in our analysis, it is the state’s largest homeowners insurance company, with 24% market share based on written premium.
State Farm’s popularity is based on a variety of factors, including strong customer satisfaction and generous discounts for bundling your home and auto insurance. Homes with safety and security features and/or impact-resistant roofing may qualify for additional savings.
| Company | Market share by written premium |
|---|---|
| State Farm | 24% |
| Kentucky Farm Bureau | 21% |
| Liberty Mutual | 10% |
| Allstate | 7% |
| USAA | 6% |
| Source: National Association of Insurance Commissioners | |
Home insurance rates in Kentucky by city
Among Kentucky’s largest cities by population, average homeowners insurance rates range from $146 a month in Covington to $196 a month in Bowling Green. The average cost of home insurance in Louisville is $187 a month.
| City and population ranking | Average annual rate | Average monthly rate |
|---|---|---|
| 1. Louisville | $2,243 | $187 |
| 2. Lexington | $1,782 | $148 |
| 3. Bowling Green | $2,349 | $196 |
| 4. Owensboro | $2,085 | $174 |
| 5. Covington | $1,749 | $146 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Cincinnati Insurance offers the lowest home insurance rates in Louisville, Lexington and Bowling Green, while Allstate offers the second-lowest rates in each of these cities. The two companies are nearly tied for the lowest rate in Covington.
In Owensboro, Allstate has the cheapest rate, followed by Cincinnati Insurance and Travelers.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Cincinnati Insurance | $1,403 | $117 |
| Allstate | $1,454 | $121 |
| State Farm | $1,961 | $163 |
| City average | $2,243 | $187 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Cincinnati Insurance | $1,136 | $95 |
| Allstate | $1,190 | $99 |
| State Farm | $1,379 | $115 |
| State average | $1,782 | $148 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Cincinnati Insurance | $1,509 | $126 |
| Allstate | $1,536 | $128 |
| State Farm | $2,096 | $175 |
| City average | $2,349 | $196 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Allstate | $1,101 | $92 |
| Cincinnati Insurance | $1,467 | $122 |
| Travelers | $1,786 | $149 |
| City average | $2,085 | $174 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Cincinnati Insurance | $1,064 | $89 |
| Allstate | $1,065 | $89 |
| State Farm | $1,372 | $114 |
| City average | $1,749 | $146 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
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How do Kentucky’s homeowners insurance laws work?
Home insurance is not required by state law, but lenders typically require it for a mortgage. Considering the value of your home, home insurance is usually also worth getting if you own your home outright.
Standard home insurance covers many of the natural disasters that can occur in Kentucky, including tornadoes, thunderstorms and hail, but certain others, including floods, earthquakes and underground mine collapse, require separate coverage.
Flood insurance in Kentucky
Most flood insurance in Kentucky is purchased through the government-backed National Flood Insurance Program (NFIP), but it is also available from private companies.
The average cost of NFIP flood insurance in Kentucky is $1,191 a year, or $99 a month.
Flood insurance is only required for mortgages on homes in high-risk flood zones, but you can purchase it on an optional basis if you don’t have a mortgage and/or your home is in a low- or moderate-risk area.
If you’re not sure about your home’s flood risk, or the flood risk of a home you want to buy, you can find it in the Flood Map Service Center on the Federal Emergency Management Agency (FEMA) website. Any zone beginning with the letter A or V is high risk.
Home insurance for earthquakes and underground mine collapse
Although earth movements are generally not covered by home insurance, Kentucky laws require home insurance companies to make coverage available for earthquakes and underground mine collapse, also known as mine subsidence.
Throughout Kentucky, homeowners insurance companies are required to offer earthquake coverage as an endorsement to your policy. The endorsement adds to the cost of your policy, but you can reject the coverage. Some companies also offer earthquake insurance as a standalone policy.
In 37 of the counties located in Kentucky’s coal regions, homeowners insurance includes a mine-subsidence endorsement, but you can waive the coverage.
The endorsement provides up to $300,000 to repair damage caused by underground mine collapse, plus $25,000 for additional living expenses if the collapse leaves your home uninhabitable.
Mine subsidence occurs when underground voids created by mining operations collapse under the weight of the soils above them.
Frequently asked questions about Kentucky home insurance
How much is homeowners insurance in Kentucky?
The average cost of homeowners insurance in Kentucky is $2,414 a year, or $201 a month.
How much is flood insurance in Kentucky?
The average cost of flood insurance in Kentucky is $1,191 a year, or $99 a month, for policies obtained through the National Flood Insurance Program. Private flood insurance rates vary by company.
How does home insurance cover natural disasters in Kentucky?
Kentucky experiences powerful thunderstorms, hail and tornadoes, which are generally covered by homeowners insurance, as well as flooding and earthquakes, which require separate coverage. Homeowners insurance in the state’s coal mining areas includes coverage for underground mine collapse.
Methodology
We obtained quotes for a standard HO-3 homeowners insurance policy on a typical home in every ZIP code in Kentucky. Unless otherwise noted, standard policies included the following limits and deductibles:
- Dwelling coverage: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
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