Cheap Kentucky Home Insurance Rates & The Best Companies

The person next door spends an average of $90 a month.

Kentucky Home
Insurance

The person next door spends an average of 

$90 a month.

KENTUCKY STATS


On average, Kentuckians are paying $1,131 every month on homeownership costs. 


There are 2 million homes in the Bluegrass State, 67% of which are occupied by owners.

  • Population: 4,468,402
  • Average value of homes that's occupied by owners: $130,000 
  • Households: 1,724,514 
  • Average household income: $46,535
  • High school grad or higher, percent of people age 25 years +: 85% 
  • Average travel time to work: 23 min 

The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.

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If you're a resident of the great Bluegrass State, you may already know that Kentucky has some of the lowest cost of living in the country. You may also know that Kentucky also has a great variety of threats to your home, ranging from floods to tornadoes. Regardless of your location, tragedy can happen at any time. It's always best to have homeowners insurance, and luckily for you, Kentucky homeowners insurance can be affordable.


Purchasing a home gives you long-term relief as you have a place to call your own, but owning it in a place like Kentucky can also bring worry as the state is known for its high rates of natural disasters.


Kentucky is susceptible to disasters such as landslides, mudslides, tornadoes and floods. In 2008, the state was ripped apart by Hurricane Ike. The state even witnessed a massive disaster when the amount of snowfall broke all records in 2004. Kentucky is included in the top 10 states with the most natural disasters.


This is why many people get home insurance as soon as they make a purchase. After all, you never know when a disaster may strike and damage your new home, and repairs can be costly if you do not have insurance. It is crucial that you look into different companies that offer home insurance in Kentucky before you settle for one. By comparing quotes from different providers, you’ll get a sense of whose giving you a cheaper rate and whose over charging. Our online comparison tool will help you in your research by providing you with a  list of insurers in your area. Just simply collect the quotes and start sorting out the insurers who have the cheapest rates. Read more below to see how your quotes compare to Kentucky’s and the country’s average premiums.

Timelapse of Louisville, Kentucky via GIPHY

Kentucky Rates vs nationwide


When it comes to home insurance, Kentucky is ranked as the 27th most expensive state in the country by the Insurance Information Institute (III). According to its data, in 2016 (latest available data) the people living in the state paid $1,085 per year on average or $90 per month for home insurance premiums. On the other hand, the national median in 2016 is slightly above this number at $1,192. Hence, residents in Kentucky are lucky as they have comparatively cheaper rates as compared with what the average American is paying for home insurance.

Average Kentucky Home Insurance Premiums

 201620152014
Monthly average$90$88.5$85
Annual average$1,085$1,062$1,023
National annual average$1,192$1,173$1,132
Rank272724
Source: The annual average premiums came from the Insurance Information Institute's latest recorded data. We calculate the estimated monthly insurance costs based on the data provided.

Trusted Home Insurance companies in-State


State Farm


For over 50 years, State Farm has been known to be among the best home insurance companies in the country. In the state of Kentucky, the company holds a market share of 24 percent, occupying 1.4 percent more market share than its biggest competitor, Kentucky Farm Bureau. A good amount of homeowners living in KY prefer this company for their home insurance needs.


To measure exactly how good it is, we will take a look at the ratings given to it by different organizations that judge on the basis of financial strength and claim payment ability. S&P has given the company a rating of AA (Very Strong), which is very high and has been allotted on the basis of its reliable claim payouts. JD Power gave the company 1.1% above the average in terms of customer satisfaction. Furthermore, AM Best has rated the company with A++ (Superior) for financial strength, which is the highest rating it offers, as it holds a strong financial position and offers a great performance.


State Farm has been given a 3 (About average) out of 5 Power Circles Rating by JD Power for overall consumer satisfaction regarding price, policy offerings, claims, interaction and billing. There’s a reason why State Farm has gotten high ratings, so you can expect a good experience with the company.


Kentucky Farm


Kentucky Farm has been around for almost 70 years. It looks after the best interest of farmers, small business owners, fishers, and people living in mobile homes or minivans. It also looks to build a relationship with its customers. It is not only for homeowners but also for businesses and renters.


The company holds a market share of 22.6 percent because of which it has landed as the second most preferred insurance company in the state. One of the reasons it is loved by consumers is that it helps protect farmers, who are a major part of the state. It also offers many discounts which are valuable when the prices are so high. These discounts are especially applicable for houses that have been affected by natural disasters, which is vital for a state that is susceptible to calamities.


You will find a number of endorsements and discounts on its website. You will have to call up a local agent to get an estimate on costs and other information as you cannot find any quotes online. JD Power and Consumer Reports have not rated the company as it is a local and small organization.


However, it has been given a rating of A (Excellent) by AM Best, as the organization feels that Kentucky Farm has financial strength with the ability to fulfill obligations towards policyholders. Other than that, it has been given a rating of A+ by the Better Business Bureau. From the looks of it, consumers are highly satisfied with the services provided by the company and many feel that it looks into the best interests of homeowners, small business owners, local markets and farmers. 


Liberty Mutual


With the third largest market share at 10.3 percent, Liberty Mutual is a well-known business among homeowners in Kentucky as well as around the country. It is known to be one of the best in terms of discounts, easy processes, and resources. You can get your hands on all the information you would need from its website.


One of its best features is that it offers additions and upgrades in plans to cover rebuilding and replacing costs. As Liberty Mutual offers various discounts, you will most probably be able to save on premiums as well.


The company has a JD Power score of 3 (About average) out of 5. It also received an A (Excellent) from AM Best for its financial strength. Lastly, it received a score of 88 out of 100 from Consumer Reports. This shows people’s trust in the company and its services.

Kentucky Home Insurance Companies: Market Share and Summary of Ratings

RankInsurerMarket Share %AM BestS&PJD Power
1State Farm24.0A++AA3
2Kentucky Farm22.6ANRNR
3Liberty Mutual10.3AA3
4Allstate6.4A+AA3
5USAA4.8A++AA+5
6Travelers2.9AA3
7Auto-Owners2.6A++AA3
8Nationwide2.5A+A+3
9Cincinnati2.4A+A+4
10State Auto2.3A-NRNR
NR: Not rated
Source: Insurance Information Institute, AM Best, S&P, JD Power

Insurance laws for Kentucky homeowners


Kentucky, like most other states, has a law that outlines settlement practices when it comes to insurance policies. Kentucky follows the Unfair Claims Settlement Practices Act (UCSPA), which ensures that insurance companies follow the mandates provided. If the company fails to do so, the insured homeowner can recover 12 percent (per annum) prejudgment interest. This is in addition to the policy benefits that the company and homeowner have agreed upon. The act aims to protect the rights of insured people and to ensure that companies comply with their policies and agreements. 

Timelapse of Louisville, Kentucky via GIPHY

Average Costs

Kentucky home insurance is ranked nationally at number 27 out of 51 states, two years in a row from 2015 to 2016 (latest available data) according to III. Which means KY falls just below average cost in the United States. The average premium of homeowners insurance in Kentucky ranges was calculated to be $1,085, according to data gathered in 2016. Now, this may sound like a large number for the Bluegrass State, but when compared to Louisiana's average annual premium of $1,967, Kentucky's premiums are below average. Kentucky homeowners will pay almost half the price for premiums when compared to states like Texas, Florida, and Oklahoma. Kentucky homeowners insurance costs $107 less than the national average.


Homeowners insurance may seem like an unneeded added cost, but the possibility of damage to your home might be too great to ignore. Wind and hail damage account for most liability claims, and from 2011 to 2015, these types of claims were the most frequently reported. If you're uninsured, protect your home and investment with homeowners insurance.


Get cheap quotes With These Tips


There are many ways to make homeowners insurance more affordable for you and your family. Below are some of the ways to help lower the cost of premiums for your home.


Bundling


With some insurance companies, it is possible to lower your premium if you purchase a few types of insurance as a bundle. Ask your local insurance representative if there are any package deals that are being offered. You may be able to knock up to 10 percent off your premium by purchasing automotive insurance!


​Improve your credit


These days, your credit score can affect many aspects of your financial life, including your homeowners insurance premiums. Be sure to build and maintain a strong credit score by paying bills on time.


​Build a relationship


Insurance companies, like all companies, always try to make their customers feel valued. If you can stay with the same insurance company for a few years, you may be offered a discount because of your customer loyalty.


​Secure your home


When purchasing or building a home, consider how protected your home is physically from damage. If your home is in a flood plain, your premiums will be higher than a home in a safer area. Try to anticipate the dangers to your home, and if possible avoid them. You can also install screens to protect windows and doors, which may lower your risk of damage to your home. The safer the home, the less your premiums will be.


Give your local homeowners insurance representative a call today, and find out how you can protect your home, and your family, from unforeseen damage.



Resources:


United States Census Bureau  

Insurance Information Institute

Consumers Advocate

For more assistance, please contact your local state department of insurance:

Kentucky Department of Insurance

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