Homeowners Insurance in Kentucky

What factors influence my home insurance rate?

The average home insurance cost in Kentucky depends on several factors. Here are some common elements that can affect Kentucky homeowners insurance rates:

• Coverage: One of the first things that may influence your home insurance rate is coverage type. The coverage you select, such as actual cash value or replacement cost value, and how much protection you want for your belongings and liability can all impact your rate. 
• Deductibles: If you choose lower deductibles, your annual premiums will likely be higher.
• Home construction: A home made of wood usually costs more to insure than one made of brick or stone.
• Home age: Newer homes often have lower premiums than older homes.
• Credit: If you have poor credit, your premiums might be higher.
• Claims history: Your insurance may cost more if you have filed an insurance claim in the last three to five years.
• Home-based business: Running a business from home can increase your premium to cover inventory and equipment.
• Swimming pool: Having a pool may raise your liability coverage due to the risk of injuries.

Common insurance discounts in Kentucky

The average cost of homeowners insurance in Kentucky can be higher than in most other U.S. states. However, you can save on your annual premiums by leveraging insurance discounts. 

Each Kentucky home insurance provider offers different discounts. However, here are a few common ones you can use:

• Protective devices: Homeowners who install smart home devices like security systems, fire alarms, or smoke detectors may get a discount. These safety features help reduce the risk of damage or injury. You'll usually need proof that they're installed to get the discount.
• Gated community: If you reside in a gated community, you may qualify for a discount.
• New home: New homes often meet the latest Kentucky homeowners insurance laws and building codes and use modern materials, which lowers repair costs and risks. Due to this, insurance providers often offer discounts for new homes.
• Bundling: You can save money by getting more than one type of insurance from the same company, such as combining your home and auto insurance.
• Continuous coverage: If you have kept your insurance coverage without gaps for a long time, you may get a loyalty discount. Insurance carriers often prefer homeowners who stay insured over time.
• Green home: Some insurance companies provide discounts for homes with eco-friendly features.

Tips for lowering home insurance rates

When you buy or renew your homeowners insurance in KY, there are simple ways to lower your annual premiums. Follow the tips to the T to save some dollars and lower your home insurance rates:

• Review and update coverage: Make sure your policy fits your current needs. Your home's value and belongings can change over time, so it's best to update your coverage if necessary.
• Increase your deductible: Choosing a higher deductible can lower your premium. Just be sure it's an amount you can afford if you need to file a claim. According to the Insurance Information Institute (III), raising your deductible from $500 to $1,000 could save you up to 25% on your premium.
• Look for discounts: Ask your insurer about discounts for installing security systems, staying claims-free, or bundling home and auto insurance.
• Improve your home safety: Adding burglar alarms, smoke detectors, and weatherproofing can lower your risk of claims and may get you a discount.
• Check your credit score: A better credit score can sometimes mean lower insurance rates, so it's worth improving your credit if required.
• Keep your house in good shape: Fixing uneven stairs, loose decking, or cracked pavement can help prevent accidents and save money. Trimming tree branches near your roof can reduce the risk of storm damage, resulting in lower premiums.
• Stay loyal: If you stick with the same insurer for five to 10 years, you could earn a 5-10% discount.
• Shop around: Want to reduce your annual insurance premium? Don't settle for the first homeowners insurance quotes in Kentucky. Explore different insurance companies and change providers if required 

What does Kentucky home insurance cover?

Standard home insurance in Louisville, KY, or any other city in Kentucky helps protect your home and belongings. An HO-3 policy is a common type that covers damage to your house and your personal items.

Here's what a standard KY homeowners insurance policy usually includes:

Dwelling coverage 

Dwelling coverage helps pay for repairs or rebuilding if your home is damaged. It covers perils such as theft, vandalism, fire, and bad weather like wind, lightning, or hail. 

Moreover, the policy also covers damage from external forces, such as a falling tree branch.

Personal property 

Personal property coverage within your KY homeowners insurance covers your belongings inside your home. It may include furniture, clothes, heating and cooling systems, and kitchen appliances. 

If you have valuable items like art or jewelry, you may need additional coverage for them.

Other structures 

Other structures coverage protects buildings separate from your home, such as a garage or shed. It also covers outdoor grills, fireplaces, swing sets, and fences.  

Sometimes, the policy even includes a pool or trampoline. However, these high-risk items may need extra liability coverage.

Loss of use 

If you need to stay somewhere else while your home is being repaired, loss of use coverage helps pay for your living costs, such as hotel stays and meals. 

However, there might be limits on how much and long this coverage applies, so check your policy details.

Personal liability protection 

Personal liability coverage helps if someone gets hurt on your property and sues you. It can cover medical bills and your legal fees.

Medical payments 

This covers medical costs if someone outside your household gets hurt on your property. It pays for necessary treatments and copays within a year of the accident.

This coverage usually has a limit, but you can increase it if needed.

Additional Kentucky insurance coverage options

Since 1953, Kentucky has had 67 federally declared disasters, 32 of which occurred after 2000. 

Because Kentucky experiences many weather-related disasters, homeowners might need additional insurance coverage. This can be added to their policy as an insurance rider (also called endorsement) or bought as a separate policy.

Here are some additional coverage options homeowners in the state of Kentucky should consider:

Flood insurance

Whether it's Kentucky condo insurance or home insurance, standard policies don't cover flood damage. To get flood coverage, you need to buy it separately or sometimes add it to your policy. 

You can easily buy flood insurance through FEMA's National Flood Insurance Program (NFIP) or from private companies.

Water backup coverage

If water backs up into your home from a sewer or drain, this additional coverage can help pay for repairs. It usually occurs in basements or crawl spaces during heavy rains but can also occur from any blocked sewer or drain.

Earthquake insurance

Although Kentucky hasn't had any major damaging earthquakes in over 200 years, this doesn't mean you should forget about them.

Kentucky is in one of the most active earthquake zones in the country. This is why many experts believe it's not a question of if an earthquake will happen but when.

That's why you should consider earthquake coverage.

It can cover damage from the quake and aftershocks, loss of personal items, rebuilding costs, and temporary living expenses if your home is unsafe. 

Some companies offer earthquake insurance as an add-on, while others provide it as a separate policy.

Identity theft coverage

Identity theft isn't caused by weather, but it's becoming more common. Adding this coverage can help with the costs of fixing a stolen identity.

Windstorm insurance

Windstorm insurance helps with damage from hurricanes or tornadoes. It can cover structural damage, loss of personal items, rebuilding costs, and living expenses if you need to move out. 

Like earthquake insurance, you can seek windstorm coverage as a separate policy or an add-on. 

What coverage is recommended in Kentucky?

In Kentucky, it's highly recommended to consider adding the following coverage options to your homeowners insurance policy:

Flood insurance

Homeowners insurance in Lexington, KY, or elsewhere typically doesn't cover flood damage. 

Floods can occur in many places in Kentucky, from towns along the Ohio River to city areas that might face flash floods. Floods can still happen even if you're not in a flood zone.

According to FEMA, one inch of floodwater can cause up to $25,000 in damage. That's why it's really important to have flood insurance to protect your home and belongings from flood damage.

Scheduled personal property

Scheduled personal property is for valuable items worth more than your regular policy covers. 

With this additional coverage, you can protect jewelry, watches, computers, and collectibles. However, you may have to provide receipts or appraisals to get this coverage.

Insuring your home in Kentucky

Although purchasing the best homeowners insurance in Kentucky may seem complicated, it's rather simple. 

Follow the steps to insure your home in Kentucky:

• Determine your coverage: Decide how much coverage you need. You don't want too much (which costs more) or too little (which could leave you paying out-of-pocket). Make sure to communicate with a licensed agent and build a home inventory.
• Set your priorities: Consider what you want in an insurance company besides low rates. Do you need 24/7 customer service? Maybe you want extra coverage options for a high-value home. Knowing your priorities will help you choose the right company.
• Get homeowners insurance quotes in KY: Once you know what coverage and benefits you need, gather quotes. Some companies offer online quotes, but it can also help to talk to an agent. Ask for similar coverage levels from each company to compare rates accurately.
• Contact the company and apply: Once ready, contact the company to start the application process. Some companies may require a home inspection to check the condition of your home. Find out what inspections, if any, are needed.

Is Kentucky homeowners insurance required by law?

You're not legally required to have home insurance, but your mortgage company will likely insist on it until you pay off the home. 

Even if you own your home outright, homeowners insurance in Kentucky can still offer valuable financial protection.

Looking for homeowners insurance in a different state?

If you search for home insurance outside Kentucky, use the interactive map below to find information specific to your state.