8 Best Homeowners Insurance Companies in Kentucky of 2023

Owning a home in Kentucky warrants serious consideration of homeowners insurance. This type of insurance covers various aspects, from replacing personal belongings damaged by fire to rebuilding your home after a natural disaster. It can also provide compensation for liability claims and cover living expenses if your house becomes uninhabitable.

Finding the right insurance provider can be challenging with numerous options available. However, by focusing on affordability, customer service, reimbursement speed, and user-friendly platforms, you'll be one step closer to identifying the right insurer.

Each company offers distinct coverage and features. We've analyzed rates and benefits from the top homeowners insurance providers in Kentucky to help you find affordable options with suitable coverage to meet your needs.

Compare Homeowners Insurance Rates in KY

The Best Homeowners Insurance in Kentucky

• Allstate: Best Policy Overall
• Liberty Mutual: Best for Discounts
• Nationwide: Best Policy for Coverage Options
• State Farm: Best Policy That’s Easy to Reach
• Travelers: The Policy with the Most Experience
• Chubb: Best for the Add-Ons Covered in Basic Policy
• State Auto: Most Affordable Policy
• Safeco: Best for Replacement Cost

Allstate: Best Policy Overall

From 24/7 customer service and comprehensive policy coverage to helpful discounts and a variety of add-on options, Allstate is great for any homeowners in Kentucky looking to protect their house overall.

They have a great online presence that includes a home value estimation tool to help you better understand how much coverage you need.

You’ll have to do a home inventory, but this way, you are on the safe side if a covered peril damages or destroys your belongings because your insurer will know exactly what needs to be replaced.

Coverage in home insurance is everything; if you purchase a basic policy without any additional insurance, you may be out of luck if a natural disaster strikes.

The many add-on coverages include:

• Identity theft restoration
• Water backup
• Scheduled personal property
• Sports equipment
• Green improvement reimbursement
• Yard and garden
• Electronic data recovery

Plus, here’s what’s exclusive to Allstate:

Offers a unique discount to non-smoking Kentucky residents.

Has an earthquake coverage add-on for either 10% or 25% of the dwelling limit.

Features the Claim RateGuard benefit, which keeps insurance premiums from increasing after you file a claim.

And here are some ways to lower your premium, otherwise known as discounts:

• Multi-policy
• Responsible payment
• Claim-free
• New home buyer
• Automatic payments
• Protective devices
• Early signing

However, an Allstate policy can be expensive.

The national average for homeowners insurance is $1,310 per year for $250K in dwelling coverage.

For the same dwelling coverage, Allstate’s premium is $1,460 annually.

Read a full Allstate homeowners insurance review.

Liberty Mutual: The Best Homeowners Insurance for Discounts

Liberty Mutual’s average homeowners insurance premium in Kentucky is $1,190, which is average in price.

But Liberty Mutual offers some unique discounts that homeowners would be hard-pressed to find anywhere else, including their paperless policy discount and insured-to-value discount.     

These discounts will reduce the high premium and include:

Other discounts include:

• Automatic monthly transfer from your bank.
• Discount if you are active members of the military and veterans.
• New roof.

Read a full Liberty Mutual home insurance review.

Nationwide: Best Policy for Coverage Options

Nationwide is very affordable, with a premium rate lower than the national average.

Besides being known for its low premium, Nationwide is also known for its wide range of coverage. The company has the most coverage compared to other insurers.

Some coverages don’t always come standard with other companies. For example, ordinance or law insurance pays to rebuild your home to current building codes after a covered loss and after you had made upgrades or changes (like structural) since it was built.

The company’s credit card coverage helps pay for unauthorized transactions or ATM activity and reimbursement for forged checks.

Personal Property Coverage

For additional personal property insurance, Nationwide allows you to provide higher coverage levels for jewelry, art, and other valuables that may exceed the limits of a standard policy.

Replacement Cost

This increases the amount covered by your standard policy by up to 20% if your home needs to be rebuilt after a loss.

Water Backup

This covers repairs following a septic system backup or sump pump failure that are not covered by a standard policy.

Better Roof Replacement

This helps when a covered peril damages your roof and Nationwide pays to replace it with a new, stronger one and with the use of better materials to make it more resistant to the next storm.

State Farm: Best Policy That’s Easy to Reach

State Farm offers home insurance coverage at a level one would expect from one of the country's largest and most successful insurers. It has incredible customer service, affordable premiums, and a website that’s easy to navigate.

State Farm is also best in its class for being a national carrier that you can connect easily to so you can review your policy or make a claim.

Read a full State Farm homeowners insurance review.

Travelers: The Policy with the Most Experience

Travelers has over 160 years of experience in the insurance industry.

In addition, a trusted source gave Travelers a score of 93.6 out of 100 due to its trustworthiness, reputation, and experience.

What this means is that Travelers has great customer service and a strong financial strength that guarantees it can pay out a claim after you make one and on time.

The company has an impressive nine deductible options that will keep your premium adaptable based on a policyholder’s selection.

Of note is the company’s decreasing deductible benefit, which credits you with $100 towards your deductible each year if you don’t file a claim.

A few other benefits that are unique include:

Unlike other insurers, Travelers doesn’t have a separate deductible for wind and hail, which can save you money on out-of-pocket costs after these natural disasters ruin your home or personal property.

If your home equipment fails or breaks down, you can purchase an add-on to have them repaired or fixed. This includes major appliances and systems, such as your home's refrigerator, stove, HVAC, and other systems.

Chubb: Best for the Add-Ons Covered in Basic Policy

Chubb policyholders pay a high premium. The cost, which is $1,830, is higher than the state of Kentucky average and the national average.

However, Chubb was designed for the high-net-worth in mind and typically insures homes over a million and higher.

However, Chubb’s Masterpiece policy includes high-end features that come standard and which many other companies charge extra for.

Extended Replacement Cost

Extended replacement cost means your home will be repaired or rebuilt to its original condition even if the price exceeds your policy limits.

Temporary Living Arrangements

Loss of use is standard in a basic policy, but Chubb goes the extra mile and will help you find a place to stay where you'll be comfortable, such as a hotel.

If you have children in school, Chubb will find a similar home you can inhabit to guarantee your children won’t miss school after a covered peril.

Cash Settlement

In the event of a covered total loss, if you decide not to rebuild or to rebuild at another location, Chubb offers a cash settlement up to your policy limit.

Replacement Cost Coverage

If your belongings are destroyed during a covered peril or due to theft, the insurer will cover your items for the amount it costs to replace them today.

This means without deduction for depreciation, up to the limit you chose on your policy. And Chubb doesn't require you to replace your items. The company offers you a cash settlement instead.

Items covered include appliances, custom cabinets in kitchens, flooring, and carpentry.

Extra Coverage

Chubb offers extra coverage at no additional cost to you. These are unique and include tree removal after a storm, restoration of electronic data destroyed by a computer virus, or lock replacement if your keys are lost or stolen.

State Auto: Most Affordable Policy

State Auto home insurance is one of the most affordable policies for most policyholders in Kentucky.

Rather than getting add-ons or endorsements, State Auto, in addition to its standard policy, offers packages at all levels of coverage.

The best thing about the Standard Package is that it includes replacement cost value, which pays for brand-new items that are damaged or stolen instead of their depreciated value, or ACV.

Protection Plus

Includes lock replacement and freezer or refrigerator content if food is spoiled due to refrigerator breakdown or from a power outage.

The HomeXtended policy, which is an optional endorsement, includes extra and expanded coverage for your home and your high-end personal belongings.

It also covers up to $5,000 of business equipment like computers and printers if used in your home for business purposes.

And mortgage and related extra expenses help pay for appraisal and application fees after you find a new home and get a new mortgage.

Finally, the Premier Plan includes everything under the Protection Plus package and the HomeXtended endorsement and extra coverage for valuable items like jewelry and fine art.

Safeco: Best Homeowners Insurance for Replacement Cost

A subsidiary of Liberty Mutual, Safeco’s homeowners insurance is essential for Kentucky homeowners to have due to wind damage caused by tornadoes and water damage caused by heavy rain.

In fact, Kentucky’s high premium is due to the state’s risk of weather-related property damage.

Having said that, Safeco’s premium of $1,575 is cheaper than the Kentucky premium rate.

So, Safeco is the way to go for natural disasters because it offers replacement cost coverage.

Replacement cost means that the cost to replace an item will be of similar type and quality, which means that the insurer will reimburse your belongings using today’s prices.

This is unlike ACV, or actual cost value, where you get the depreciated value of your property that will not fully cover replacing it.

Replacement cost, which you purchase as an endorsement, is important because it will increase your home’s coverage limits an additional 25% or 50% if the cost to rebuild the house exceeds your dwelling coverage.

In addition, Safeco offers some attractive optional coverages that you pay for as add-ons. These include:

Identity Recovery

For only $1 per month, Safeco will reclaim your identity and offer up to $25,000 in expenses or lost wages that result from identity fraud.

Valuable Article

You can schedule your high-value items so that you won’t have to pay a portion of out-of-pocket expenses because the basic policy only covers up to the policy limits.

Equipment Breakdown

Like identity coverage, equipment breakdown is also cheap to have as an endorsement.

For $2 per month, if your refrigerator or other household appliance breaks down or stops working, Safeco will cover the repairs or have them replaced.

Why Trust Us When Shopping for Home Insurance?

Our Methodology

We thoroughly researched 20 of the top homeowners insurance companies in the state and narrowed the list down to those that operated in Kentucky.

We rated them on criteria that included discounts, coverage, technology, customer reviews, and price.

We surveyed insurance coverage prices for the major cities in Kentucky. These included Louisville, Lexington, Bowling Green, Covington, Richmond, Georgetown, Henderson, and Elizabethtown.

How We Ranked and Picked the Best Homeowners Insurance Companies in Kentucky

We gathered information from multiple trusted rating companies and insurance companies to narrow down the needs of Kentucky residents by prioritizing the following:

Customer Reviews

Customer reviews act as indicators of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.

Insurers with a good number of quality consumer ratings and reviews were included in our list.

Price

We looked at insurance companies that had low premiums.

In addition, if a premium was costly, but the insurer offered discounts to lower it, thereby making the policy affordable, we looked at how many discounts the insurer had.

Technology

Using technology is often synonymous with you saving time. So, if an insurer had a useful and easy-to-use website and app, and both saved you time because, for example, you could make a claim anywhere and at any time of the day, we put that company on our list.

Discounts

How many discounts can lower your premium? The more discounts an insurer had, the better your cost.

Coverage

A standard homeowners insurance policy does not have enough coverage to make it comprehensive.

And as there isn’t one company to fit everyone’s needs, we evaluated companies by the number of coverage options that were available to policyholders. 

If the insurer didn’t have enough coverage, we considered add-ons or endorsements that increased your coverage so that the full amount of your personal belongings that were damaged due to a covered peril would be reimbursed to you.

Locations

We surveyed insurance coverage prices in Louisville, Lexington, Bowling Green, Owensboro, and Covington.

Do You Need Homeowners Insurance if I live in Kentucky?

Homeowners insurance coverage is not required by law.

However, if you have a mortgage, the lender will most likely require you to insure your home to protect its investment.

But even if you don’t have a mortgage, it’s best to get a policy because then your house and its contents are protected.

Kentucky Home Insurance Coverage

Here’s what Kentucky home insurance typically covers for a standard insurance policy.

Dwelling

This covers damage to your house. For example, the insurer will cover the cost of rebuilding your home if it’s destroyed in a fire or other covered peril.

Learn more about what is covered by home fire insurance.

Other Structures

This covers stand-alone structures on your property, like a fence, shed, or detached garage.

Liability

If you cause bodily injury or property damage to another person unintentionally or through neglect, your policy will pay for medical bills, any necessary repairs or replacements, and legal fees if you’re sued.

Medical

Your insurer will pay if someone is injured on your property and needs medical treatment, regardless of who’s at fault. It also pays if you, a family member, or a pet like a dog injures someone elsewhere.

Personal Property

This policy pays to repair or replace stolen or damaged belongings in a covered peril, whether in your home or on a trip.

Loss of Use

If a covered event destroys your home to the point that it is unhabitable, loss of use will pay for your temporary living expenses, such as staying at hotels or motels or having meals at restaurants.

How Much Does Homeowners Insurance Cost in Kentucky?

The national average for homeowners insurance is $1,310 per year for $250K in dwelling coverage.

The average premium in Kentucky is $1,840 per year. It is cheaper than the national average.

The cheapest homeowners insurance company in Kentucky is State Auto. It is less than $1,000 a month with 250,000 dwelling coverage, beating out the average premium in Kentucky and the average premium nationwide.

What Natural Disasters Affect Your Premiums?

In general, homeowners in Kentucky pay higher premiums due to the state's risk of natural disasters.

In fact, Kentucky made the list of the ten states with the most natural disasters.

A homeowners insurance policy typically covers natural disasters caused by an explosion, fire, lightning, hail, windstorm or winds, hurricanes, tornadoes, extreme cold, volcanoes, and theft.

The natural disasters that occur in Kentucky include the following:

• Hurricanes
• Heavy wind
• Earthquakes
• Flooding
• Landslides
• Severe winter storms
• Tornadoes

A standard policy generally covers most of the above natural disasters, so adding wind coverage, for example, as an endorsement is not necessary.

Also, adding hurricane coverage is not necessary unless you want to increase the coverage so it’s comprehensive and you won’t have to pay out-of-pocket.

So, you'll be covered if a hurricane rips the roof off your home.

This means that most of the natural disasters that occur in Kentucky are covered under a basic policy.

What Natural Disasters in Kentucky are Not Included in a Standard Policy?

Homeowners insurance usually does not cover natural disasters like earthquakes and floods.

Earthquakes

Kentucky is known for its severe earthquakes, so it’s best to purchase an earthquake policy to cover damage to your home and belongings when this natural disaster strikes.

Flooding

Flooding due to hurricanes, tropical storms, and storm surges, for example, is a reason why your personal property can get damaged or even destroyed.

A home insurance policy, no matter where you live or which insurance you choose, never covers flooding.

And most insurers don’t pay for water damage due to floods.

An example is that while an insurer may cover water damage if your roof leaks due to a hurricane, it won’t cover flood damage from the same hurricane.

For coverage, you need to add flood insurance to your policy.

But remember adding flood and earthquake coverage can increase your premium in a very big way.

In Kentucky, the average annual cost offlood insurance is very high, around $1,100 per year.

And the average cost of earthquake insurance is $800 per year.

See the best flood insurance companies for your home.

Why Are Earthquake and Flood Deductibles So High?

Earthquakes and flood deductibles are high because the damage from them tends to be catastrophic, making them a higher risk for insurers.

To cover costs, insurers need to make deductibles high.

What Determines Your Premium?

It’s important to note that your quoted policy will be different than someone else’s quoted policy, even if all you need is a basic plan.

That’s because all customers are different and have different needs that could affect their premiums.

A homeowner who owns an old home with existing conditions will pay a higher premium if the systems and appliances in the house are not updated or have not been recently repaired, making insurers worry that the condition of the home means more claims.

In contrast, if your home is new or recently renovated, you’ll pay a lower premium because a new home will usually have new systems, appliances, and other features.

As such, there’s less of a chance that homeowners will make a claim.

For example, if homeowners install a new roof or make alterations to their house that could protect it from natural disasters is a step in the right direction.

Here are other things that could affect your premium.

House

• The distance of your house is near a fire hydrant or fire station.
• The building materials used to build or renovate your home.
• The size of your mortgage and how much you owe.
• The square footage of your house.
• The age, condition, and cost of your home.

This includes outdoor structures on your property that are not attached to your house. These include a detached garage, a shed, a pool house, and more.

Safe Neighborhood

If you live in a safe, crime-free neighborhood and you have installed security cameras or alarm systems and deadbolts in your house, you’ll pay less.

High-Priced Possessions

You'll pay more if you plan on insuring high-value personal belongings with additional coverage. Additional coverage, or an add-on, mostly comes with a fee for most insurers.

No Flood Area

If you live in a neighborhood that is not prone to flooding, your rate will be low.

Credit Score

You'll get a cheaper rate if you have a high credit score, say starting at 700 and going higher.

If your score is low, around 650 and below, the insurer will quote you a higher premium.

Deductible

If you raise your deductible, your rate will be lowered.

Claims History

If you have never made a claim before with another insurer and then move on to a new insurer with a clean record, your rate will go down.

How Do You Find a Homeowners Insurance That’s Right for You?

The most effective way to find a right policy is to get quotes from as many insurers as possible.

Affordability

Once you get multiple quotes, you can compare them to choose which is the cheapest.

Research

Once you find a company you like, research it thoroughly to see what coverage it has and what coverage it doesn’t have.

Coverage matters. You’re paying for something you don’t need if you buy too much. The coverage should reflect your needs and wants.

Online Presence

If you can’t get a quote using an insurer’s website and need to contact a customer service rep to get the info, then that can speak to the company’s inadequate online presence.

Most policies will allow you to get a quote online, so that’s something to consider.

The point here is that if an insurer has an online presence that enables you to find as much information as you need for your policy or allows you to easily make a claim or pay your bill, then that’s a company you’d want to work with.

And that’s because a website or app allows you to save time and provides great convenience.

You can, for example, document a claim whenever you feel like it, at any time of the day, or whenever it is convenient.

Speak to an Agent

If you need to speak to an agent, you can get a more informed view of what your premium will cost and any discounts that can lower it.

Ask About Discounts

Pay attention to companies that have many discounts to reduce your monthly premium.

Don’t Consider Price Alone

The insurer you select should also have friendly reps and high-quality customer service.

You can ascertain how good a company is after talking to several agents when getting policy quotes.

Is the tone of their voice pleasant? Do they explain the policy with patience and answer your questions in an informative and helpful way?

Also, try to find information about a company relating to how fast it can reimburse you for a claim and how easy it is to make a claim. If the claims process is lagging or slow, or if reimbursement takes a long time, that’s a company you don’t want.

Also, look at AM Best, which rates an insurer's financial strength. If AM Best gives the insurer an A rating or better (A++ is the best), then the company will most likely reimburse you after a claim in a timely and efficient manner.

Coverage

You should also look at what coverage the company has to offer.

You can do this if the company has a website or you can call a rep.

Look at the coverage that is unique to the company and only offered by other insurers at a cost.

For example, an insurer you'll want to consider a basic policy where replacement cost comes standard. Most companies offer replacement cost as an added cost.

Are There Ways to Reduce the Cost of Homeowners Insurance?

The biggest way to reduce the cost of your premium is to ask your insurer for discounts.

The most important discount to get is a multi-policy discount. If you bundle your homeowners insurance with your auto from the same company or add on additional insurance like life insurance, you’ll get a high percentage off your premium.

Here are the most common homeowners insurance discounts or ways to lower your premium:

Raise Your Deductible

The standard deductible in the home insurance industry is usually at least $500.

If you can afford to raise your deductible to $1,000, you may save as much as 25%.

The higher your deductible, the more money you can save on your premiums.

Credit Score

Increasing your credit score by paying down credit cards or reducing overall debt.

Remodeling Your Home

Making updates to your home that significantly alters it in a useful way, such as remodeling a bathroom, will get you a discount.

That’s because the plumbing in the new bath will be new and has less of a chance of breaking or having a water overflow.

Loyalty Discount

If you remain with the same insurer for a long time, such as six or five years, you’ll get a loyalty discount or some sort of saving on your policy.

Being Claims-Free

Insurers love policyholders who are low maintenance and haven’t made a claim for a set time determined by the insurers. So, you qualify for a discount for being claims-free.

Turning Your Home into a Safe House

Homeowners insurance companies love it when you install security devices in your home because that lowers theft or burglaries.

This, in turn, makes insurers feel secure because a safe house reduces claims.

Some security measures you should add to your home include a monitored burglar system or a monitored security system. Fire alarms, secured windows, deadbolts, and more reduce your premium.

In addition, if you live near a fire hydrant or close to a fire department, the insurer will also lower your premium because this makes a fire department respond to a fire more quickly and get to your home as quickly as possible can.

This means less damage to your home from a fire, which makes your claim smaller and insurers get peace of mind.

Living in a Gated Community

An insurance company likes it when a homeowner lives in a house in a gated community or lives in a condo or co-op with 24/7 doormen because this lessens the chance for a break-in.

Mature Homeowner’s Discount

Most burglaries happen during the day, not the night, because that’s the time when homeowners are at work.

But if you are retired, you may be home all day, and this lessens the chance of your home being burglarized.

Non-Smoker Discount

An insurer’s enemy is fire. If your house burns down due to a fire, the claim to renovate or remodel the house can be very high for the insurer.

If you smoke, you increase your chances that a cigarette can cause fires.

So, you get a discount if you don’t smoke.

Home Improvements

If you make your home stronger in terms of safety, longevity, or structure, you qualify for discounts because the chances of making a claim are reduced.

Here are some home improvements that make a difference:

Impact-Resistant Roof

Getting an impact-resistant roof lessens the chance of hail causing damage to your roof.

For example, if hail can punch a bunch of holes in your roof, this could lead to your roof leaking.

Systems Improvements

Water shutoff devices, new plumbing, and updating or getting a new HVAC system can lead to a lower premium.

Keep in mind that you need to qualify for a discount. So. look for a company that offers discounts that are specific to your needs and which you can take advantage of.

So, if you had to be claims-free with a provider for six consecutive years and then moved to a new insurance company that would give you a discount for being clean, this is just nearly impossible to achieve.

You had to have made a claim, even if it was only once, if you were a human being.

Does a Homeowners Insurance Policy Cover Appliances?

A basic homeowner insurance policy will repair or replace an appliance provided that the damage was due to a covered peril.

But if the appliance is at the end of its lifetime and is so old that the parts to fix the appliance are no longer being made, the insurer will not cover it.

And if the damage to your appliance is due to your negligence and poor maintenance, you also won’t be covered.

See the best home warranty companies for your appliances.

How Much Homeowners Insurance Do You Need?

A standard policy will only cover a limited expense that’s not up to the full value of your most prized possessions.

For example, a standard homeowners insurance policy will only pay up to the policy limit if you have an expensive property like jewelry.

Then you will not be reimbursed up to the full value of your jewelry and may have to pay out of pocket to make up the difference.

But if you schedule your items, this will ensure that your jewelry is fully protected.

This will increase your premium but will fully cover your jewelry.

Scheduling means you can increase the coverage amounts of your insurance policy for your jewelry, artwork, or other high-cost belongings.

A scheduled personal property endorsement can also reduce or even eliminate the deductible.

Even after you schedule, it’s possible you can’t come to a consensus on how much additional insurance you should get.

If this is true, you should do a home inventory.

A home inventory is a catalog of all your belongings. It should include items in your house, yard, garage, car, and office.

You can start a home inventory if you know how much you paid for each item.

If you don’t recall the price of an item like your laptop, go online to find a similar one.

In some cases, you’ll find that you have more precious belongings than you thought you had. That’s just one reason why a home inventory is helpful.

After making a list of the belongings you need coverage for, add to that the cost of each belonging to help your insurer correctly calculate your reimbursement payout after a covered loss.

You should be able to give your insurer as much information you can.

The most important thing to do is to take photos of the items you need coverage for.

Also of importance is giving your insurer a description of your item, the make and model of your item, the original cost, the approximate date of purchase if you don’t know the exact time, and, finally, the receipt.

It’s hard to keep track of receipts, but for expensive items, you should always keep them in case a loss occurs.

The result of a home inventory is that it should tell you exactly how much coverage you need.

It is also helpful to your insurance company.

If a covered peril destroys your belongings, the company will know exactly which items were destroyed or damaged and how much it needs to reimburse you for replacing the items.

How Do I Get Homeowners Insurance in Kentucky?

Getting a quote first is the starting point.

You can get the quote on a company’s website or by talking to an agent or customer service rep.

Once again, get multiple quotes to see which one is the most affordable to you or if you like what a company has to offer, such as the availability of its agents.

After you decide on a company, you will need the following information to apply:

Home Info

Details about your home. Is it brand new? If not, how old is it or what year was it built? Did you make structural changes? Did you remodel your kitchen or bathroom? What age is your roof?

Personal Info

Your name, address, and date of birth. Some companies will want your social security number.

An idea of the coverage you would like to buy, such as getting earthquake insurance since Kentucky experiences this natural disaster many times a year.

The last thing you need to do is to talk to an agent or rep who will go through everything you need to know about purchasing a policy.