Kentucky renters pay an average of $21 a month for a standard renters insurance policy. Renters insurance provides coverage for your belongings, costs arising from damage or injury you're responsible for and additional living costs if you have to relocate while repairs to your rental home are made.
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How much does renters insurance cost in Kentucky?
The average cost of renters insurance in Kentucky is $246 a year, or $21a month. This is slightly higher than the national average home insurance rate of $18 a month. Factors that can affect your renters insurance rate include:
- Your ZIP code
- How much personal property coverage you choose
- Your personal claim history
- Your policy's deductible
Below is a table showing how getting different amounts of personal property coverage can affect your average annual cost of renters insurance:
| Coverage amount | Annual cost |
|---|---|
| $13,999 and under | $132 |
| $14,000 - $19,999 | $145 |
| $20,000 - $25,999 | $163 |
| $26,000 - $31,999 | $178 |
| $32,000 - $37,999 | $171 |
| $38,000 - $43,999 | $199 |
| $44,000 - $49,999 | $194 |
| $50,000 - $74,999 | $230 |
| $75,000 - $99,999 | $290 |
| $100,000 and over | $437 |
| Source: National Association of Insurance Commissioners (2019) | |
Before buying a renters insurance policy, make sure you know how much personal property coverage you'll need. The best way to find that dollar amount is to make an inventory list. This list should include the makes and model numbers of your belongings, as well as their replacement cost. This will help make sure you do not purchase too much or too little renters insurance coverage. Furthermore, it may help speed up filing a claim.
What are the best renters insurance companies in Kentucky?
The price point is going to be a consideration when you buy a renters insurance policy. There are other factors to consider as well, such as a provider's customer satisfaction and complaint trends.
J.D. Power is a marketing research firm that puts out an annual property claims satisfaction study that analyzes insurance companies' claims resolution, policy offerings, price point and interaction trends. Its 2022 study put the average ranking at 871. The higher an insurance provider's ranking, the better its overall customer satisfaction.
The National Association of Insurance Commissioners (NAIC) compiles a complaint index that reflects how many claims-related complaints an insurer receives in relation to its size. The average complaint index is 1.0. The lower an insurance company's complaint index ranking, the better its standing. The table below shows the current standings of the major renters insurance providers in Kentucky, along with their J.D. Annual Property Claims Satisfaction Study and NAIC Complaint Index ratings.
| Company | J.D. Power | NAIC |
|---|---|---|
| Allstate | 870 | 0.76 |
| Farmers | 884 | 0.04 |
| Liberty Mutual | 876 | 0.23 |
| Nationwide | 878 | 0.03 |
| Progressive | 874 | 0.2 |
| State Farm | 876 | 2.67 |
| Travelers | 852 | 0.02 |
| USAA | 893 | 0.6 |
| Sources: 2022 J.D. Power U.S. Property Claims Satisfaction Study and NAIC Complaint Index | ||
How to get renters insurance in Kentucky
If you're looking to get a renters insurance policy, an important step is to compare quotes from multiple providers. You will need to look at different coverage types that make up the policy while doing this. They are:
Personal property coverage
In simple terms, personal property coverage takes care of repairing or replacing your belongings that are damaged or destroyed. This can include your possessions that are damaged, destroyed or stolen from storage, or from your car.
Kentucky gets a fair share of flooding, and you should consider this when getting insurance for your rental home. Standard renters insurance excludes flood damage, so consider adding on a renters flood insurance policy.
Additional living expenses (ALE) coverage
ALE, also known as "loss of use," coverage pays for living cost differences that can occur if damage to your rental requires you to move out temporarily. ALE covers expenses such as:
- Additional rent costs
- Longer commute costs
- Restaurant meals
- Laundry
- Temporary furniture rental
Personal liability coverage
If you are responsible for an injury or property damage, personal liability coverage takes care of repair, replacement and/or medical costs. Most renters insurance policies default to a $100,000 limit when you purchase one, but you'll want to consider raising that rate. A long stay in a hospital or a drawn-out court case can burn through that amount quickly, leaving you to pay the rest yourself. To maintain your financial peace of mind, consider increasing your personal liability coverage to at least $300,000.
Medical payments coverage
This coverage type is much like personal liability, except it only covers costs resulting from a guest getting injured in your rental. Medical payments coverage usually maxes out at $5,000.
Do I need to have renters insurance in Kentucky?
You are not required by law to have renters insurance, but your landlord can require you to have a policy as part of your lease agreement. While splitting renters insurance with roommates may sound like a good way to cut costs, it isn't in your best interest. You would be sharing your coverage limits with them as well, which can severely cut down your chances of a full replacement of your belongings if you lose everything in a fire.
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