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Kentucky is a beautiful place to live. It is home to stunning natural surroundings, an excellent lifestyle, and even better bourbon! The Bluegrass State is a great place for buying property, but what about protecting the investment once you own it?
Alongside the picturesque parks, mountains, waterfalls, and caves comes the risk of extreme weather events- most notably tornadoes and heavy storms. People need to take steps to cover themselves in case the worst were to happen, and the way to do that is with homeowners insurance.
Homeowners insurance provides cover for Kentucky property owners from damage, theft, and extreme weather, but picking the best option can be tough. That is why we have created this guide on what to look for and some of the best companies in Kentucky to insure your home with.
We have picked five great Kentucky home insurance providers based on research regarding price policies, coverage options, and other important features.
Kentucky Homeowners Insurance Coverage Overview
As a Kentucky homeowner, landlord, or property manager, understanding homeowners insurance and how it helps to safeguard your investment is the first port of call for financially defending your properties.
It is extremely important to have a high-quality homeowners insurance policy to provide yourself with a buffer between your personal finances and unforeseen challenges and unexpected events that impact your home and everything in it.
What Is the Average Cost of Homeowners Insurance in Kentucky?
Based on data from the Quadrant Information Services, Kentucky home insurance costs an average rate of around $3600 per year. This is comparatively high against the national average cost of a little over $2400, but there is a good reason for that.
Although Kentucky lies a little outside the infamous Tornado Alley, it still has some of the highest recordings of extreme weather events in the country- including a recent violent and destructive tornado in 2021. Because of the significant risk to homes, the liability coverage is higher, so the overall cost increases.
Of course, the cost of homeowners insurance in Kentucky varies depending on the company you choose and the home insurance coverage options included in the policy. Other factors that impact the price of your homeowners insurance include:
- Location
- How much your property is worth
- The size of the property
- When the property was built
- The property's condition
- Your claims history
- Coverage features and limits
- Specific coverage add-ons
- Whether or not you take advantage of discounts and bundles
Many companies over basic homeowners insurance policies together with other packages such as car insurance- offering a discounted bundle price. There are generally optional coverage options you can add for extra- including flood insurance, personal liability coverage, and storm coverage. The more things you add and the higher your coverage limits, the more the insurance may cost. Older homes are also often more expensive to insure, as do homes with any high-risk structural features.
In Kentucky, home insurance is more expensive in the parts of the state with a higher risk of extreme weather- Jefferson County, for example.
The Difference Between Homeowners Insurance and Landlord Insurance
Depending on your role in property ownership or management, there are different types of insurance to consider. Many people have trouble distinguishing between homeowners insurance and landlord insurance, but there are some crucial differences you need to know about.
If you own your home and live in it personally, homeowners insurance is the way to go. It is predominantly designed to cover personal property, structural damage, and theft of your belongings. The only times you would need to consider landlord insurance for a home you own and do not rent would be when the property is vacant, you are considering renting it in the near future, or you are temporarily home-sharing. It is always best to speak with an insurance company to confirm the best option.
Those who rent out the properties they own to others usually require landlord insurance. It extends to cover the added liabilities that come with having tenants, including loss of rental income. You may need both insurances, but some landlord insurance policies are comprehensive enough to do both.
The Best Homeowners Insurance Companies in Kentucky: Five Top Picks
Here are our five top picks for Kentucky home insurance providers based on their features, coverage, and service. We have focused on what makes them great for this state as well as in general, and have shared details of some of the homeowners insurance discounts you may be able to benefit from if you choose them.
1: State Farm
State Farm is a leading multi-policy insurance company with an A++ AM Best Rating and is our first choice for Kentucky homeowners. It is a financially powerful and highly customizable insurance policy provider that is known and loved across the country for its comprehensive coverage options, competitive prices, and robust and reliable network of local agents who work closely with clients to provide an exceptional level of care.
Coverage and Features
This insurance company works in almost every state (not California) and offers dwelling coverage, personal property, personal liability coverage, loss of use, other structures, and some medical expenses.
One of the things that makes this a particularly good choice for Kentucky homeowners is the generous dwelling coverage limits. As long as you insure your home for the entire estimated rebuild cost, State Farm's increased dwelling limit will pay up to 20% more than the insurance coverage if your property is destroyed and costs more to rebuild than expected.
In general, it has an impressive selection of add-ons and extras that are beneficial in Kentucky in case of extreme weather. Even the simplest premiums offer generous coverage and personalized service from a local agent.
Here are some of the notable features available with a State Farm homeowners insurance policy in Kentucky.
- Sewer and drain coverage
- Flood insurance from the National Flood Insurance Program
- Earthquake coverage
- HVAC system upgrades
- Comprehensive water damage coverage
- Incidental business insurance for remote workers
- Dwelling foundation insurance
- Liability coverage for in-home carers
- Additional structures coverage for buildings not on your property's premises
State Farm also has a super handy app to let people check their policies, submit claims, and track communications.
Discounts
Using the State Farm discounts and bundles, you can save as much as $1127 on your annual premium. The range of discounts is not as wide as some other providers, but the ones on offer are genuinely beneficial to most owners. Here are some of the highlights.
- Multi-policy discounts: Save money when you combine home and auto insurance with State Farm.
- Home security: Discounts are available for homes that have monitoring systems such as smoke detectors and alarms.
- No-claims history bonus: If you go several years without making a claim, State Farm's insurance premiums are reduced.
- Utility updates: In some cases, homeowners may be eligible for a discount after they upgrade their utilities.
- Roofing discounts: If your Kentucky home has an impact-resistant roof installed, it could mean a discount on your policy.
2: Erie
Erie is arguably the best home insurance company in many ways, thanks to its generous policies and various discounts. It is only available in a few states, but luckily Kentucky is one of them!
Coverage and Features
Even the standard homeowners insurance policy with Erie is beyond what most providers offer. Here are some of the best features.
- Full replacement cost coverage
- Animal insurance in the standard policy
- Service line and utility damage coverage
- Assistance in replacing important documents
- Coverage for lost or stolen items
Discounts
Considering how robust the policies are, Erie is available at a great cost. To make it better, there are also some discounts you can take advantage of.
- Bundling discounts
- Reduced rates if you make wind mitigation efforts
- Autopay discounts
- Discounts for renewing in advance
- Savings on homes with smoke detectors, sprinklers, and security alarms
3: Nationwide
Nationwide is one of America's largest home insurance companies, offering excellent rates and well-rounded coverage. The brand is trusted, easy to work with, and provides a good choice of policy features that apply perfectly to Kentucky properties.
Coverage and Features
As a leading provider, Nationwide offers robust policies that cover all the essentials, including dwelling rebuild coverage, property damage and theft, and personal liability insurance. There are also plenty of additional options for coverage with generous limits.
- Enhanced roof replacement with better materials
- Water backup coverage
- Service line insurance
- Brand new belongings replacement
- Earthquake coverage
- Medical expenses for residents and guests
- Flood insurance from the National Flood Insurance Program
Local Nationwide agents are available to support clients with questions and claims, and there is an app you can use instead.
Discounts
Nationwide advertises many discounts, deals, and bundles online that Kentucky homeowners can benefit from.
- New home bonus: Nationwide insurance is cheaper for homes bought within 12 months of taking out the policy.
- Roofing discount: Properties with new roofs made from specific materials may qualify for discounted rates.
- Smart tech and security discounts: Some smart home technologies and security features, such as smoke detectors and burglar alarms, can reduce premiums with Nationwide.
- Gated community discounts
- No-claims bonus: Staying claim-free can reduce the cost over time.
- Auto insurance bundles: Insuring your home and car together gives you cheaper rates.
- Renovation credit: You may receive credit for updating your heating, plumbing, or cooling systems.
4: Chubb
Chubb is a premium homeowners insurance company that ticks all the boxes. Its policies are comprehensive and offer excellent protection in every circumstance. It is more expensive than the average policy, but the service is worth it.
Coverage and Features
One of the standout features of Chubb is an extension that covers your home for restoration to its original quality no matter how much it costs. Here are some other worthwhile features for Kentucky homeowners.
- Earthquake damage coverage
- Higher property insurance
- Home monitoring service in storm-prone areas
- Post-storm tree removal
- Cash settlements up to the policy's value
- Risk consultation services
Discounts
There are some discounts available when you insure your home through Chubb, but not as many as some other providers.
- New and renovated homes receive lower rates.
- Discounts are available for homeowners with monitored security systems and certain safety features.
- You can save money by bundling your home insurance with auto insurance coverage.
5: Farmers
Farmers is a versatile, money-saving insurance option for Kentucky homeowners. Despite having higher policy rates, the many discounts and deals make it a great choice.
Coverage and Features
There are three tiers in the standard Farmers homeowners insurance policy, but you can add plenty of extras to customize the plan to suit you. Two of the best qualities of Farmers homeowners insurance are the personal property replacement cost coverage and extended home rebuild coverage limits that cover you even if the costs exceed your policy. Here are some of the other features of note.
- Eco-rebuild bonus (an additional $25,000 if you rebuild using green materials)
- Equipment breakdown
- Water backup and pump failure coverage
- Service line insurance
- Home share coverage
Another bonus of using Farmers is the claims forgiveness policy, which stops your rates from going up if you claim after five years.
Discounts
Like the other providers on our list, Farmers offers a few different ways to save money when you insure your home with them. There are many offers, so here are some of the highlights.
- No-claims bonus: Your premiums will reduce after three years claim-free, and your rate is secured even if you claim after five years.
- No smokers bonus: Rates are cheaper in smoke-free homes (minimum of two years).
- Bundle discounts: Save money by combining your home and auto insurance coverage through Farmers.
- New home bonus: Homes fewer than 14 years old receive lower policy rates.
- Profession-based discounts: Farmer offers special rates to teachers, firefighters, and doctors- amongst other professions- including retirees.
- Automatic payment bonus: You can save by paying in full, signing up for automatic payments, and consistently paying your bills on time.
- Discounts for fortified homes: Kentucky homeowners who fortify their windows, foundations, roofs, or walls may receive discounted rates.
Some Other Kentucky Homeowners Insurance Companies to Consider
- Allstate
- Liberty Mutual
- Cincinnati Insurance
- Amica
Conclusion
There are plenty of great options for homeowners in Kentucky who want to insure their properties and protect their investments. Always shop around for quotes and think about the things that matter most to you when assessing which company to pick.
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