The Best (And Cheapest) Kentucky Homeowners Insurance Companies

Find the Cheapest Homeowners Insurance Quotes in Your Area

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We looked at the best homeowners insurance companies in Kentucky and found that the cheapest rate is $878 per year for a typical homeowner. However, when buying a homeowners insurance policy, you should also look at the coverage options and customer service to find the best fit for you. Read on for our recommendations, or use the quote box above to find the best rates near you.

The Best Homeowners Insurance Companies in Kentucky

We took a deep look into the top-rated homeowners insurance companies in Kentucky in order to find the best combination of price, service and features. We have a recommendation we think is best for most people, plus alternate choices for those with more specialized insurance needs.

Best for most people: State Auto

State Auto's affordable rates and quality customer service make it our recommendation for most Kentuckians.

State Auto home insurance is our recommendation for most homeowners in Kentucky. It had one of the best rates we found for home insurance in Kentucky, alongside solid coverage options and well-regarded customer service. The average price we found for home insurance from State Auto was $994 per year, which is 29% less than the average cost across all other insurers we surveyed.

Besides typical home insurance, State Auto offers two levels of premium coverage packages: Protection Plus and Premier. These packages extend your coverage beyond what's provided in a standard home insurance policy. For example, Protection Plus includes watercraft and golf cart liability, while Premier also includes coverage for a vault in your home.

State Auto has dependable customer service. It received a complaint index of 0.23 from the National Association of Insurance Commissioners (NAIC), meaning it received fewer than one quarter as many complaints relative to its size as a typical insurance company in the U.S.

The biggest drawback to State Auto home insurance is that its online tools are fairly meager. State Auto homeowners insurance is only sold through their network of insurance agents. You can't get a quote online, and there aren't many options to manage your account on the company website. You can pay your bill and file a claim online, though.

Best for online tools: State Farm

State Farm's online tools are powerful and convenient, while its home insurance rates are better than average.

We recommend State Farm to Kentucky homeowners who want powerful online tools to manage their policies, as well as the stability and features you'd expect from the nation's largest insurer. Insurance shoppers can get an online quote from State Farm without having to meet with or call an insurance agent, making it a convenient option for people in rural areas or who can't meet with an agent. State Farm's website also lets you file a claim, pay bills and manage your policy on your computer or smartphone.

State Farm's home insurance rates are on the affordable side for Kentucky home owners. We found an average price of $1,225 per year, which is 13% less than the typical price among all insurers. We were very impressed with State Farm's customer service and financial stability ratings. It received a 0.20 complaint index from the NAIC, meaning that it receives one fifth as many complaints as a typical company. And State Farm has an A++ financial stability rating from AM Best Rating Services — the highest possible score.

The company also provides a wide range of other insurance and financial products, including auto and life insurance, so customers looking to manage all aspects of their financial life with one company can do so at State Farm.

Best for military families: USAA

USAA has unmatched customer service and great rates, plus special perks for active soldiers.

USAA is an excellent insurer for homeowners affiliated with the U.S. military in Kentucky. Its rock-bottom rates and great customer service are unmatched by any other company. USAA had the lowest rates of any company we surveyed, with a typical price of $878 per year. That's 38% less expensive than what we found statewide.

USAA also has consistently positive customer service reviews. It has an impressively low 0.15 NAIC complaint index, meaning that it receives about one-seventh the number of complaints as a typical homeowners insurance company. This suggests people tend to be happy with the service they receive from USAA.

Active members of the U.S. military will stand to benefit from USAA's wide range of coverage choices that specifically benefit them. For example, unlike most homeowners insurance policies, USAA's personal property coverage protects your belongings while you're in a warzone. USAA will also waive your deductible for any claim while you’re on active duty.

The only drawback to USAA is that it has very strict eligibility requirements. You can only join if you’re a current or former member of the U.S. military; or, if you have a direct family member who has USAA insurance.

The best-reviewed homeowners insurance companies in Kentucky

When selecting a home insurance company, it's essential to consider more than just price — customer service and financial stability are vitally important as well. When considering insurance companies' overall quality, we consider the National Association of Insurance Commissioners (NAIC) Complaint Index, J.D. Power Homeowners Insurance Survey and the AM Best Financial Strength Rating.

InsurerNAIC complaint indexJ.D. Power homeowners survey scoreAM Best financial strength rating
Auto Club Group0.66--A-
Auto-Owners Insurance Co0.214/5A++
Allstate0.313/5A+
Kentucky Farm Bureau0.11--A
Liberty Mutual0.532/5A
Nationwide0.242/5A+
State Auto0.23--A-
State Farm0.204/5A++
Travelers0.32/5A++
Erie0.25/5A+
Metropolitan0.232/5A
USAA0.155/5A++
Shelter0.34--A
Kentucky Growers Insurance Co----B++
American Family0.683/5A

An insurance company's NAIC complaint index compares the number of complaints it has received with the dollar amount of insurance premiums it has sold. A lower complaint index means that it has received fewer complaints relative to its size, with 1.0 being the national average.

The cheapest options for homeowners insurance in Kentucky

Finding the best price on homeowners insurance can save you hundreds of dollars per year. To find the most affordable option, we've collected rates from the top home insurance companies in Kentucky.

USAA had the lowest prices we found for homeowners insurance, with an average of $878 per year — that's 37.6% less expensive than the statewide average home insurance cost of $1,407 annually.

The second-most affordable home insurer was found was State Auto, with an annual price of $994 — it's $413 cheaper than the typical Kentucky price for home insurance. It's also the cheapest option available for people who aren't affiliated with the U.S. military.

Bar chart showing the cost of different home insurance companies in Kentucky

Common homeowners insurance perils in Kentucky

As a landlocked state in the south-central United States, Kentucky does not face as many perils as some states that lie along the coast, or which frequently experience wildfires. However, it does experience severe weather and other disasters, including tornadoes, floods and occasional earthquakes.

Is damage from tornadoes covered by home insurance?

Kentucky had 41 tornadoes in 2018 — the tenth-most of any state in the U.S. Tornadoes and other windstorms are among the most common causes of homeowners insurance claims. The good news is they're almost always covered by insurance. Wind is one of the named perils that appears on most homeowners insurance policies.

The most dangerous thing about tornadoes, especially relative to storms like hurricanes, is how suddenly they can appear. While meteorologists can predict where and when hurricanes will hit a few days in advance, tornadoes can pop up with little to no advance warning. If you're in an area put under tornado watch, head towards shelter and make sure you monitor the situation. If a tornado warning is issued, find shelter immediately in a basement or a room away from windows.

Do Kentucky homeowners need flood insurance?

Kentucky isn't a coastal state, but that doesn't mean its residents can't be vulnerable to flooding damage due to rising river levels or rainfall. And home insurance does not cover flood damage. Kentucky residents who want to protect their home and personal property against the cost of flood damage should definitely look into purchasing a separate flood insurance policy.

Purchasing flood insurance will only be required if:

  • Your lender requires it, or
  • You live in an area designated as a Special Flood Hazard Area (SFHA) by the federal government, and you have a mortgage from a federally regulated or insured lender.

Kentucky residents can determine their flood zone by searching for their address in the FEMA Flood Map Service Center.

Very few Kentucky residents are covered against flood damage. Kentuckians hold around 21,000 flood insurance policies, while there are about 1.1 million owner-occupied housing units in the state. This means less than 2% of homeowners have a flood insurance policy. Home insurance is much more prevalent, with about 81% of Kentucky homeowners holding a policy.

Column chart comparing the frequency of home insurance and flood insurance in Kentucky

However, the low proportion of Kentuckians who carry flood insurance is even more striking when you consider that there are 90,049 homes in Kentucky that exist within a 100-year floodplain — the area designated as a "high risk flood zone" by FEMA. Even if every flood insurance policy in Kentucky covers a home in a 100-year floodplain, only 23% of people in that area are protected if their homes are flooded.

If your lender doesn't require you to buy a flood insurance policy, you don't have to. But even those in lower-risk flood zones should consider buying flood insurance. Over 20% of flood insurance claims are for homes in moderate-to-low-risk zones, as flood damage isn't limited to the most vulnerable areas. Homeowners in lower-risk areas can buy a Preferred Risk Policy, which is a cheaper policy that the NFIP sells, and cost $108 per year at its lowest coverage levels.

Do Kentucky residents need earthquake insurance?

Earthquakes are not as common in Kentucky as they are along the Pacific coast of the U.S., but they do happen — especially in cities like Paducah along the New Madrid fault line, which is near the Mississippi River in the western part of the state.

Unfortunately, earthquake damage is very rarely covered by homeowners insurance. It's usually listed as a "named exclusion" on homeowners policies, meaning that you won't be able to use your insurance to pay for damage. Instead, you'll need to buy a separate earthquake insurance policy to cover the cost of damage to your property. You may also be able to purchase an earthquake endorsement from your regular home insurance company, if it's available.

Kentucky insurance rates: City-by-city breakdown

In addition to an overall statewide price analysis, we also collected insurance quotes for the major cities in Kentucky. For each city, we've included the typical rate, along with how it compares to the average cost of home insurance in Kentucky of $1,332.

CityAnnual premium% difference from state average
Louisville$1,243-11.7%
Lexington$1,002-28.8%
Bowling Green$1,319-6.3%
Owensboro$1,187-15.7%
Covington$1,026-27.1%
Hopkinsville$1,324-5.9%
Richmond$1,106-21.4%
Florence$1,021-27.4%
Georgetown$1,018-27.7%
Henderson$1,198-14.9%
Elizabethtown$1,233-12.4%
Nicholasville$1,089-22.6%
Jeffersontown$1,213-13.8%
Frankfort$1,060-24.7%
Paducah$1,353-3.8%
Independence$1,030-26.8%
Radcliff$1,261-10.4%
Ashland$1,195-15.1%
Madisonville$1,328-5.7%
Winchester$1,107-21.4%
Erlanger$1,021-27.4%
Murray$1,336-5.0%
St. Matthews$1,228-12.7%
Fort Thomas$971-31.0%
Danville$1,190-15.5%
Newport$984-30.1%
Shively$1,242-11.7%
Shelbyville$1,179-16.2%
Glasgow$1,354-3.8%
Berea$1,198-14.9%
Bardstown$1,251-11.1%
Shepherdsville$1,291-8.3%
Somerset$1,355-3.7%
Lyndon$1,222-13.2%
Lawrenceburg$1,131-19.6%
Mayfield$1,405-0.2%

Our research on home insurance isn't limited to cities in Kentucky. Read our national comparison page for a more detailed understanding of how much homeowners insurance costs in other states.

Methodology

We collected home insurance quotes for properties in every ZIP code in Kentucky from nine of the largest home insurance companies operating in the state. Our sample property was built in 1978 and insured for $141,000 of dwelling coverage.

Companies surveyed:

  • Auto Club Group
  • Auto-Owners Insurance Co
  • Kentucky Farm Bureau
  • Liberty Mutual
  • Nationwide
  • State Auto
  • State Farm
  • Travelers
  • USAA

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

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Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.