Best and Cheapest Home Companies in Kentucky (2026)
Allstate usually has the cheapest home insurance rates in Kentucky, at an average of $1,805/yr. | ||
Kentucky home insurance costs an average of $3,158/yr, which makes it the 10th-most expensive state in the country. | ||
People living near Kentucky's northwestern border often pay more for home insurance, with average rates above $4,500/yr. |
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Who has the best cheap home insurance in KY?
Who has the cheapest home insurance in KY?
Allstate has the cheapest home insurance for most people in Kentucky.
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- Allstate's average rate of $1,805 per year for home insurance with $350,000 of dwelling coverage is the cheapest option in Kentucky. That's about 43% less than average statewide.
- State Farm is the cheapest company if you have a high-value home. A policy with $1 million of dwelling coverage costs around $3,660 per year from State Farm. That's considerably less than most of the other large companies in the state, often at least $2,000 per year cheaper.
- Progressive often has the cheapest rates for brand new homes, at around $1,053 per year for $350,000 of dwelling coverage.
Cheap home insurance in Kentucky
Key takeaways
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Allstate and State Farm are usually the cheapest options, depending on how expensive your house is.
Allstate is a better option for midpriced or less expensive homes, while State Farm is cheaper as homes get more pricey. Allstate has also raised rates relatively slowly in recent years, only about 30.5% since 2021. That's less than other large companies, such as State Farm, at 55.7%, and Progressive, at 71.9%.
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Home insurance rates in Kentucky have gone up by nearly 50% during the past five years. That's a little higher than the national average of 48%.
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Kentucky homeowners closer to the Ohio and Mississippi rivers on the state's western borders tend to pay more than people elsewhere in the state.
That might be because the area is somewhat prone to earthquakes, sitting on a fault line, and can experience floods. Some of the cheapest home insurance rates can be found in the state's northeast corner, just over the border from Cincinnati and Ohio.
Best home insurance in Kentucky for most people: Allstate
| Editor rating | |
| Annual cost | $1,805 |
| Monthly cost | $150 |
| Customer complaints |
Pros & cons
- Low rates
- Good coverage options
- Mixed customer service ratings
- Not the cheapest option for a new home
Why is Allstate the best?
Allstate offers some of the lowest home insurance rates among large companies in Kentucky. That's especially true if your home is on the less expensive side to rebuild.
How much is Allstate Insurance in Kentucky?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $1,028 | 54% cheaper |
| $350,000 | $1,805 | 43% cheaper |
| $500,000 | $2,747 | 32% cheaper |
| $1 million | $5,977 | 17% cheaper |
Allstate also has a wide range of coverage options you can add, including some you won't find with every company. Those include coverage for musical instruments and sports equipment, protection for business property, and protection for your yard and garden landscaping.
Potential issues
Allstate's customer service for home insurance is a mixed bag, so you might have a longer wait or a more complicated process if something happens to your home.
The company gets complaints at a higher rate than average for a company its size. And Allstate's ratings from J.D. Power are average to below average for customer satisfaction and satisfaction with the claims process.
Allstate can also be more expensive than Progressive and State Farm if you have a new home. So it's a good idea to look at all three companies to make sure you're getting the best rates.
Best home insurance in Kentucky for bundling: State Farm
| Editor rating | |
| Annual cost | $2,092 |
| Monthly cost | $174 |
| Customer complaints |
Pros & cons
- Strong choice for bundling home and auto
- Cheap rates for expensive homes
- Wide range of add-on coverages
- Customer service can be hit or miss
- Few other discount options
Why is State Farm the best?
State Farm has cheap rates for Kentucky home insurance and cheap car insurance in Kentucky. If you want to bundle your home and auto, it's a good choice. State Farm's bundle discounts can save you more than 20% on your combined rates.
Average bundle discounts
State Farm | 23% |
|---|---|
| Allstate | 21% |
| Nationwide | 19% |
| Farmers | 15% |
Discount numbers are averaged from thousands of home and auto quotes from across Illinois, Pennsylvania and Texas.
The company also has the cheapest rates among major companies in the state for more expensive homes. State Farm rates for homes that cost $500,000 or $1 million to repair are 38%-49% cheaper than the state average.
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $500,000 | $2,527 | 38% cheaper |
| $1 million | $3,660 | 49% cheaper |
Potential issues
Beyond getting a large bundle discount, you won't have that many other ways to cut your rates with State Farm. The company offers a few options, but fewer than other large companies, such as Allstate, Auto Owners and Farmers. You might be able to lower what you pay enough to make another company cheaper than State Farm.
State Farm has also seen its customer service reputation become a bit more mixed in recent years. The company gets 23% more complaints than an average company its size, according to the National Association of Insurance Commissioners (NAIC). But J.D. Power rated State Farm as one of the best home insurance companies nationally for customer satisfaction.
Best insurance company for new homes in KY: Progressive
| Editor rating | |
| Annual cost | $3,847 |
| Monthly cost | $321 |
| Customer complaints |
Pros & cons
- Low rates for new homes
- Lots of options for discounts
- Inconsistent customer service
- Not many extra coverage options
Why is Progressive the best?
Progressive has the cheapest home insurance rates for new homes among major companies in Kentucky. The company's average rate of $1,053 per year is around one-third cheaper than the state average.
Progressive offers discounts for having a more recently built home and if you've recently bought your home.
You can also lower those rates even more with Progressive's wide range of discounts. You can get a break on your rates for getting a quote 10 or more days before your coverage starts, getting burglar and fire alarms, or bundling with car insurance.
Potential issues
One of the biggest downsides of Progressive in Kentucky is that the company doesn't have the best customer service. The company gets 17% more home insurance complaints than an average company its size. It also didn't score well on J.D. Power's overall customer satisfaction study, but it did better in terms of satisfaction with its claims process.
The company also offers relatively few extra coverage options. Beyond the basic coverages offered with most policies, you can only add water backup coverage and personal injury coverage, which pays if you're the defendant in certain types of lawsuits.
Compare rates for new homes
Who has the cheapest rates for new homes in Kentucky?
Company | Annual rate | ||
|---|---|---|---|
| Progressive | $1,053 | |
| State Farm | $1,168 | |
| Allstate | $1,381 | |
| Cincinnati | $1,539 | |
| Grange | $1,550 | |
What are the best-rated homeowners insurance companies in Kentucky?
Allstate and State Farm are the best-rated home insurance companies in Kentucky.
Both companies have cheap rates and good options for coverage, and Allstate also has a wide range of discounts. Progressive, Auto-Owners and Cincinnati Financial are well-rated for their customer service, with good scores from J.D. Power and fairly low rates of complaints, according to the National Association of Insurance Commissioners (NAIC).
Company |
Rating
|
Complaints
|
|---|---|---|
| Allstate | Average | |
| State Farm | Average | |
| Westfield | Low | |
| Auto-Owners | Low | |
| Cincinnati | Low |
What is the average cost of home insurance in KY?
The average cost of home insurance in Kentucky is $3,158 per year.
That's 32% more expensive than the national average, which is $2,395.
Average cost of home insurance in KY by dwelling coverage amount
Dwelling coverage | Average rate |
|---|---|
| $200,000 | $2,231 |
| $350,000 | $3,158 |
| $500,000 | $4,059 |
| $1 million | $7,189 |
Kentucky has more expensive homeowners insurance than most states in the region.
States such as Indiana and Ohio, or even Illinois, Virginia and West Virginia, have lower rates. Tennessee home insurance, however, is more expensive.
Kentucky tends to experience a range of natural disasters, including snowstorms and flooding.
Kentucky home insurance rates by city
Fort Thomas, a Cincinnati suburb on the Ohio River, is the cheapest city in Kentucky for home insurance.
In Fort Thomas, the average rate is $2,315 per year for insurance.
Grand Rivers, a small town with artificial lakes on two sides, is the most expensive town in Kentucky for home insurance. The average rate of $4,803 per year is likely because the entire town is so close to the water.
Allstate is the cheapest option in the majority of the state's cities, about 65%. That includes Lexington and Louisville, the largest cities in the state. State Farm is usually the cheapest option in the rest of the state.
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Cost of KY home insurance by city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Aberdeen | $3,415 | Allstate | $1,925 |
| Adairville | $3,458 | Allstate | $1,925 |
| Adams | $3,693 | State Farm | $2,064 |
| Adolphus | $3,246 | Allstate | $1,564 |
| Ages Brookside | $3,538 | State Farm | $2,213 |
Rates are for a policy with $350,000 of dwelling coverage.
What home insurance do I need in Kentucky?
Wind damage, including from tornadoes, causes the most damage to homes in Kentucky.
Flooding, earthquakes, ice storms and thunderstorms with hail can also cause significant damage across the state.
Does home insurance in Kentucky cover tornadoes?
Home insurance almost always covers tornado damage. More money is spent by insurance companies repairing wind damage than any other cause in Kentucky, with tornadoes becoming more common in Kentucky as "Tornado Alley" shifts to the east. Kentucky had 53 tornadoes in 2025.
Even though tornado damage is covered, you might pay a higher "wind/hail" deductible when you file a claim. If you're shopping for insurance, pay attention to the deductible options so that you know what you would have to pay if a tornado hit your home. If you already have a policy, check your documents or talk to your agent to see if you have a wind/hail deductible.
Does Kentucky home insurance cover earthquakes?
Home insurance does not automatically cover earthquake damage. You have to buy an earthquake add-on to have coverage. If you're in an area with a high risk for earthquakes, you might need a separate earthquake policy.
Kentucky lies close to a few different fault lines, specifically with the western part of the state on the New Madrid Seismic Zone. Although Kentucky hasn't had a large earthquake in a while, the state does experience smaller earthquakes, including a 3.1 quake in late 2025.
Does Kentucky home insurance cover hail?
Home insurance almost always covers damage from hail. Heavy hail can damage your roof or break windows, and can impact structures attached to your home like sheds or gazebos.
Kentucky experienced 150 severe hailstorms in 2025, 24 with hailstones 2 inches across or greater. Most of them happen between mid-March and late May.
Does home insurance in Kentucky cover flooding?
Home insurance never covers damage from floods. You have to buy a separate flood insurance policy if you want coverage for flood damage.
The eastern part of the state saw more than $34 million of flood insurance claims paid out in just two counties from 2020 to 2025. You can use the flood zone tool from the Federal Emergency Management Agency (FEMA) to figure out how likely your home is to flood.
How to save on home insurance in Kentucky
Kentucky home insurance rates can be expensive, depending on where you live in the state. But you might be able to get a lower rate.
Shop around. Comparing home insurance quotes can save you thousands of dollars per year. Different insurance companies charge different rates for the same coverage. Shopping around lets you find the cheapest rate for the coverage you need.
Maintain your roof. Old or worn-down roofs are more likely to be damaged, and could even let in water that damages your ceiling or walls. If you keep your roof in good condition, you'll lower your risk of needing to file a claim, which reduces your rates. And if you replace your roof, you'll probably get a home insurance discount.
Install a water sensor. A water sensor can alert you when water is somewhere in your home that it shouldn't be, like in your basement or bathrooms. Sensors can help you catch leaks, overflows and floods while you still have a chance to lessen the damage. Some insurance companies will give a discount for these sensors.
Change in Kentucky home insurance costs over time
Home insurance prices have gone up close to 50% in Kentucky over the last five years.
That includes jumps of 10% or more each of the past three years.
The biggest increase over the five-year period was from Progressive at 71.9%, followed closely by Auto Owners, at 67.6%.
USAA had the smallest increase, at 22.4%.
How much has home insurance gone up in KY over the past five years?
Year | Avg. rate increase |
|---|---|
| 2021 | 1.30% |
| 2022 | 4.37% |
| 2023 | 11.53% |
| 2024 | 13.01% |
| 2025 | 10.28% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Frequently asked questions
How much is home insurance in Kentucky?
The average cost of home insurance in Kentucky is $3,158 per year for $350,000 in dwelling coverage. But rates depend on where you live, how much coverage you need, if you have a history of home insurance claims and more. Your price will probably be different.
Who has the cheapest home insurance in Kentucky?
Allstate has the cheapest home insurance in Kentucky, with an average rate of $1,805 per year for $350,000 in dwelling coverage. That's far cheaper than the state average.
Who has the best home insurance in Kentucky?
Allstate has the best home insurance in Kentucky because of its low rates and good customer service. But if you want to bundle home and car insurance, State Farm is a great choice. Progressive is good if you have a new home.
Methodology
To find the best homeowners insurance in Kentucky, ValuePenguin gathered quotes in every ZIP code in the state from the largest homeowners insurance companies. Rates are for a 1,953 square foot home built 45 years ago, based on the average home age and size in Kentucky.
ValuePenguin sourced quotes for properties at four levels of dwelling coverage to understand the cost of coverage for a variety of homes.
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
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 will be different.
Each company's customer service was ranked by comparing the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power's home insurance customer satisfaction and claims satisfaction rankings, and ValuePenguin editor's ratings.
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Other sources include the Federal Emergency Management Agency (FEMA), the USGS earthquake map, KY.gov, NOAA, the Kentucky Geological Survey and the Storm Prediction Center.
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
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.
