The Best (And Cheapest) Kentucky Homeowners Insurance Companies

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Our choices for the best insurance companies in Kentucky are Kentucky Farm Bureau, Travelers and USAA, based on customer feedback, though homeowners coverage needs vary and no single company is the best fit for everyone. Given these factors, below we've also provided recommendations for the best home insurance companies in Kentucky for specific types of customers.

If you're shopping based on price, we also dug into the data on home insurance costs in Kentucky. Based on our research, the average cost of homeowners insurance in Kentucky is $1,832 per year.

Our research incorporates data from 96 cities to calculate home insurance costs across the state. In these cities, we found that Nationwide averaged the lowest annual rates in the state. Read more about our findings below, or use our quote tool above to find the best home insurance quotes in your area.

Best homeowners insurance companies in Kentucky

  • Kentucky Farm Bureau
  • Travelers
  • USAA

From Lexington to Louisville, shopping for the best home insurance company in Kentucky will involve balancing your preferences for coverage features, price, stability and customer service. We've emphasized customer service in our analysis, comparing the largest homeowners insurance companies in the Bluegrass State using customer complaints. By this standard, the top-rated homeowners insurance companies in Kentucky are the the Kentucky Farm Bureau, Travelers and USAA.

The worst-rated large insurance companies in the state are Liberty Mutual, Allstate and Nationwide. However, Kentucky residents are generally satisfied with their home insurance service: All 10 largest companies receive a customer complaint ratio below the national median of 1.0.

Customer service rankCompanyMarket shareComplaint ratio
1Kentucky Farm Bureau19.5%0.15
2Travelers4.1%0.18
3USAA6.3%0.2
4Cincinnati Financial3.4%0.24
5State Farm24.1%0.26
6Auto-Owners Insurance4.1%0.28
7State Auto Mutual1.9%0.32
8Nationwide4%0.41
8Allstate7.4%0.41
10Liberty Mutual7.7%0.69
Methodology noted at the bottom of the page

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Kentucky homeowners insurance company reviews

State Farm, Kentucky Farm Bureau and Liberty Mutual are the three largest providers of home insurance in Kentucky. We researched these insurers, focusing on policy coverage, discounts and customer experience to provide our recommendation for which insurance company would best serve different types of customers. All three companies receive an A.M. Best Financial Strength Rating ranging from A to A++, which means they're sure to be able to pay your claims.

State Farm: Best for accessibility and coverage options

State Farm is the largest homeowners insurance company in Kentucky, providing a bit under a quarter of all homeowners insurance in the state. Where State Farm stands out is variety of coverages. State Farm has a long list of coverage options that range from the extended coverage limits for high-value items such as jewelry, furs and guns, to unique protections like waterbed liability coverage.

The ability to file claims through multiple methods—in person with a State Farm local agent, over the phone or through a mobile app—means State Farm can be reached whenever you need them. This accessibility has led to a strong customer complaint ratio compared to the national median, though it only ranks fifth of the top 10 insurers in the state.

Kentucky Farm Bureau Mutual Insurance: Best for customer service

Kentucky Farm Bureau the second biggest homeowners insurance provider in the state and the only insurance company in this group solely focused on providing services for Kentucky residents. With agent availability in all 120 counties, the Farm Bureau's local touch resulted in the lowest customer complaint ratio of the insurers we researched, meaning excellent service for you. However, if you want a quote, you must contact an agent, as the Farm Bureau has no online quote tool.

The Farm Bureau also boasts great discounts. For example, the insurer offers a superior home construction discount, so if your home is constructed with fire-resistant materials, there is a competitive 15% discount on your annual premium.

Only farm bureau members can purchase insurance from the Kentucky Farm Bureau, so you'll have to pay an annual membership fee on top of an annual premium. Once you are a Kentucky Farm Bureau member, however, you have access to a variety of discounts and benefits that range from food to travel.

USAA: Best for Military members and their families

USAA is known to provide some of the best insurance service in the nation. However, these products are only available to active or retired military members and their families. USAA's Kentucky homeowner's insurance policies are no exception.

USAA not only has one of the lowest complaint ratios in Kentucky, but some of the broadest standard coverage options. Standard coverages include identity theft and dwelling coverage at replacement cost valuation, both of which are generally paid add-ons with other insurers.

Despite its good customer service, there are no local offices with insurance agents to assist you in person. Instead, a variety of options such as phone, email, online or mobile app are offered for claims or quotes.

Cheapest home insurance companies in Kentucky

We gathered quotes for our sample home across 96 cities from State Farm, Allstate and Nationwide. Quotes from each company were averaged to find which insurance companies had the best home insurance rates in Kentucky. The graph and table below show the average annual costs to insure our sample home by company and the state average:

Insurance companyAverage quote
Nationwide$1,757
Allstate$1,760
Kentucky state average$1,832
State Farm$1,977
Best Home Insurance Companies in Kentucky

Best homeowners insurance rates in Kentucky's largest cities

We evaluated homeowners insurance rates across the largest cities in Kentucky. Our study implemented control variables to gather quotes that can be compared to one another. On average, homeowners in the 10 largest cities pay 15% less than the rest of the state on homeowners insurance. The cost for home insurance in the 10 largest cities based on our study was an average of $1,563 per year.

CityAverage quote
Covington$1,154
Georgetown$1,374
Louisville$1,503
Henderson$1,517
Bowling Green$1,535
Richmond$1,573
Lexington$1,623
Florence$1,669
Owensboro$1,806
Kentucky state average$1,832
Hopkinsville$1,876

Least expensive homeowners insurance in Kentucky: by city

The graph and table below show the five best cities for home insurance of all 96 cities which were part of this study. The cities are listed in order of mean price starting with the lowest average home insurance quote and ascending. Covington is the cheapest city in Kentucky for homeowners insurance based on our study. Residents pay $1,154 annually on average, which is $679 lower than the state average.

CityAverage quote
Covington$1,154
Ashland$1,286
Frankfort$1,300
Cynthiana$1,355
Georgetown$1,374
Kentucky state average$1,832
Top 5 best cities in Kentucky for homeowners insurance

Most expensive homeowners insurance in Kentucky: by city

The graph and table below show the five most expensive places of all 96 cities that were part of this study. The cities are listed in order of price and represent the average home insurance rate in each city based on our study. The most expensive city for homeowners insurance was Providence, where our research found an average annual rate of $2,791, which is $959 greater than the state average.

CityAverage quote
Kentucky state average$1,832
Marion$2,569
Madisonville$2,614
Princeton$2,615
Russellville$2,715
Providence$2,791
Top 5 most expensive cities in Kentucky for homeowners insurance

What does Kentucky homeowners insurance cover?

Homeowners insurance policies in Kentucky and elsewhere include four main coverages: dwelling, personal property, personal liability and additional living expenses.

Dwelling coverage will compensate you if the structure of your home is damaged by a covered event. The structure of a home includes its floors, walls and roof. You should always have a policy with enough dwelling coverage to cover the costs of completely rebuilding the home.

Personal property coverage pays you back for damage costs of theft of your belongings, from your clothes to your home entertainment system. Personal property coverage limits can usually be adjusted to ensure you fully cover the value of all your things.

Personal liability coverage compensates you for the costs of lawsuits related to bodily injury or property damages. It covers the cost of legal defenses and prejudgment interest up to policy limits, which generally start at $100,000.

Loss of use coverage, also referred to as additional living expenses coverage, will reimburse you for expenses incurred living outside your home after a covered event. However, only expenses above and beyond your normal expenses will be covered. For example, if you live in Bowling Green and a falling tree damages your roof, forcing you to stay at a hotel, this coverage covers those expenses and other unusual costs resulting from the event, such as additional transportation costs.

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. The average cost of flood insurance in South Carolina is $971 per year.

Purchasing flood insurance will only be required if either:

  • 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 putting their address into the FEMA Flood Map Service Center.

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

Owner-occupied housing unitsHome insurance policies in force (share of housing units)Flood insurance policies in force (share of housing units)
1,155,5576934,101 (81%)21,161 (1.8%)
Owner-occupied housing unit numbers are taken from the United States Census Bureau, home and condo insurance policies in force are taken from the NAIC and flood insurance policies in force are taken from FEMA.

If your lender doesn't require you to buy a flood insurance policy, you won'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 look to buy a Preferred Risk Policy, a cheaper policy that the NFIP sells for $108 per year at its lowest coverage levels.

Is homeowners insurance required in Kentucky?

Legally, there is no requirement to buy a homeowners insurance policy in Kentucky or any other state. However, mortgage lenders almost always require borrowers to buy a policy, and considering that most homeowners borrow to finance their home purchase, home insurance is basically a requirement.

If you pay for your home in cash or have paid off your mortgage, you won't have to buy a home insurance policy, but we highly recommend it regardless. Home insurance provides vital financial protection against costly damage to your home, and without it, you're risking the wealth accumulated through the ownership of your property.

Methodology

We studied 96 cities, spread out geographically all throughout the state of Kentucky. The sample home we looked at was built in the year 2000 and had 2,000 square feet. The property cost $200,000 and had an attached garage. Quotes for this home were obtained from State Farm, Allstate and Nationwide insurance companies. The rates were then averaged to arrive at a mean for each city. To see an alphabetical list of all the cities included in the comparison analysis, please see below. We've displayed all cities from Albany to Winchester with the average annual cost of insurance for the benchmark property and how much each city costs relative to the statewide average.

RankCityAverage Insurance RateCost Compared to Average
78Albany$2,06113%
2Ashland1,286-30%
26Barbourville1,577-14%
25Bardstown1,577-14%
30Bedford1,638-11%
65Benton1,9144%
18Bowling Green1,535-16%
19Brandenburg1,537-16%
38Brooksville1,702-7%
28Burkesville1,591-13%
83Cadiz2,13917%
48Calhoun1,817-1%
54Calvert City1,8672%
36Campbellsville1,682-8%
50Clay City1,820-1%
41Columbia1,744-5%
66Corbin1,9185%
1Covington1,154-37%
4Cynthiana1,355-26%
37Danville1,697-7%
70Dawson Springs1,9587%
88Eddyville2,28625%
80Elizabethtown2,10015%
61Eminence1,8903%
6Falmouth1,375-25%
32Florence1,669-9%
3Frankfort1,300-29%
56Franklin1,8732%
5Georgetown1,374-25%
86Glasgow2,24322%
68Grayson1,9527%
44Greensburg1,796-2%
16Harlan1,530-17%
8Harrodsburg1,429-22%
62Hartford1,8933%
52Hawesville1,8662%
40Hazard1,729-6%
14Henderson1,517-17%
71Hindman1,9607%
51Hodgenville1,8511%
57Hopkinsville1,8762%
81Horse Cave2,11115%
85Irvine2,17519%
73Jackson1,9838%
64Jamestown1,9114%
84La Center2,14117%
89Lagrange2,42532%
34Lancaster1,675-9%
10Lawrenceburg1,486-19%
60Lebanon1,8893%
79Leitchfield2,08014%
29Lexington1,623-11%
59Liberty1,8843%
43London1,778-3%
77Louisa2,04712%
12Louisville1,503-18%
93Madisonville2,61443%
92Marion2,56940%
9Maysville1,431-22%
35Middlesborough1,679-8%
39Monticello1,707-7%
72Morehead1,9768%
58Morganfield1,8823%
27Mt Sterling1,588-13%
63Murray1,8943%
33Nicholasville1,670-9%
45Owensboro1,806-1%
13Owenton1,515-17%
69Paducah1,9587%
91Paintsville2,48536%
22Pikeville1,554-15%
47Prestonsburg1,810-1%
94Princeton2,61543%
96Providence2,79152%
24Richmond1,573-14%
67Russell Springs1,9195%
95Russellville2,71548%
76Salyersville2,04412%
82Scottsville2,13517%
87Sebree2,28425%
46Shelbyville1,806-1%
42Shepherdsville1,764-4%
90Smithland2,45934%
31Somerset1,656-10%
74Springfield2,02911%
53Stanford1,8662%
75Sturgis2,03811%
49Taylorsville1,818-1%
55Tompkinsville1,8682%
23Vanceburg1,565-15%
21Versailles1,549-15%
17Warsaw1,533-16%
20Whitesburg1,537-16%
11Whitley City1,502-18%
15Williamstown1,529-17%
7Winchester1,377-25%

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