Home insurance in Kentucky costs about $189 monthly or $2,267 annually on average. Residents pay $31 less per month, or $368 less annually, than the national average, making it the 22nd most expensive state for home insurance.
Average Home Insurance Cost in Kentucky
Updated: November 13, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Dec 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in Kentucky range from $1,383 to $29,067.
Kentucky's home insurance premiums are the 22nd most expensive in the country, at 14% below the national average.
To find the best home insurance in Kentucky, determine your coverage needs, research providers and costs, and gather multiple quotes.
How Much Is Home Insurance in Kentucky?
| Kentucky Average | $189 | $2,267 | -14% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K dwelling, $125K personal property and $200K liability coverage with a $1,000 deductible.
Average Home Insurance Cost By City
Depending on your city, various risk factors, including your property's age, weather-related factors and home valuations, change and affect home insurance costs. The average monthly home insurance cost in Lexington-Fayette is around $152; in Bowling Green, it's much higher at $191.
| Bowling Green | $191 | $2,294 |
| Lexington-Fayette | $152 | $1,828 |
| Louisville/Jefferson | $186 | $2,227 |
*These rates represent a home built in 2000 out of frame with $250K dwelling, $125K personal property and $200K liability coverage with a $1,000 deductible.
Why Is Home Insurance so Expensive in Kentucky?
Home insurance is expensive in Kentucky mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs and state insurance laws. Here's each factor in detail.
Rising Claims
An increase in insurance claims within a region signals higher risks to insurers, prompting them to raise premiums to cover potential payouts.
High Weather Risks
Areas prone to severe weather, such as hurricanes or floods, face higher home insurance costs due to the increased likelihood of damage.
Rising Material and Labor Costs
When the cost to repair or rebuild homes goes up, insurance companies adjust premiums to reflect these higher expenses.
State Insurance Laws
State-specific regulations can affect insurance operations and costs, leading to variations in premiums across different regions.
What Affects Kentucky Home Insurance Costs?
Like for most home insurance companies, regardless of state, pricing is mostly affected by these factors:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
We've highlighted below how much each factor affects rates specific to Kentucky for these major factors.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in Kentucky, with rates varying by up to 16%. Weather risks, home value and population density in your area play a major role in determining costs.
| Lowest | Lexington-Fayette | $157 | $1,879 |
| Highest | Kentucky Very Small Tier Aggregate | $207 | $2,484 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices are the second most influential factor in Kentucky home insurance rates, averaging from $1,153 to $7,543 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $96 | $1,153 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $629 | $7,543 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the third most influential factor in Kentucky homeowners insurance rates, averaging from $84 to $206 per month. These factors affect replacement costs and the risk of damage or theft, leading to different rates.
| Lowest | New | Superior | Tile | $84 | $1,003 |
| Highest | Old | Frame | Shake-Treated | $206 | $2,476 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in Kentucky home insurance rates, with prices ranging from 14% below to 24% above the state average.
| Lowest | Cincinnati Insurance | $162 | $1,947 |
| Highest | Encompass | $235 | $2,818 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, lowering your home insurance costs. Premiums vary by up to 130%, with annual average rates ranging from $1,855 to $10,490.
| Lowest | Excellent | $155 | $1,855 |
| Highest | Poor | $874 | $10,490 |
How Much Does Claims History Affect Home Insurance Costs?
In Kentucky, claims history has a smaller impact on homeowners insurance premiums than other factors, affecting rates by up to 18% or about $502 annually. Filing more claims increases perceived risk, leading to higher premiums. With a claim-free history, you could pay around $2,267 annually, while two claims in the past five years might increase your rate to $3,268.
| Lowest | Claim free for 5+ years | $189 | $2,267 |
| Highest | 2 claims in past 5 years | $272 | $3,268 |
Tips to Save on Kentucky Home Insurance
With high home insurance costs in Kentucky, save on premiums, whether purchasing a new home or cutting costs on your current one. Here are tips to help you secure the best and cheapest home insurance in Kentucky for your needs.
- 1Find How Much Coverage You Need Beforehand
Determine how much home insurance you need before buying to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2Research Costs and Discounts Beforehand
To know whether you're getting a good deal, understand average costs for you and your home specifically. Ask about all home insurance discounts with agents since insurers aren't required to apply some of their reductions unless you ask them for home policies.
- 3Compare Multiple Providers Through Different Avenues
Compare multiple insurers apples to apples to find the best coverage for your needs. Use various methods, including online comparison sites, brokers, provider websites and agents, as quotes vary significantly across these channels.
- 4Consider Bundling Policies
Bundling policies leads to significant savings. For example, combining home and auto insurance can save up to xx% on home insurance and $xx annually on both policies. Combine home and auto insurance for the best savings.
- 5Reduce Your Personal Risk Profile
To get cheaper premiums on your home, make improvements like adding storm shutters or home security systems. Improving your credit score can also decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6See if You're Eligible for State Programs
Certain states offer programs to help get affordable coverage if you're denied traditional home insurance. Kentucky offers the TFPA policy to insure you if traditional insurers deny you coverage. TFPA plans don't offer the same coverage amount as traditional policies, but they meet mortgage requirements.
Kentucky Home Insurance Calculator: Bottom Line
Home insurance costs depend on several factors, with location and coverage level being the most important. To secure the best rates, research your needs and average prices, then use our estimate tool to find the best deal.
Homeowners Insurance Calculator Kentucky: FAQ
MoneyGeek answers common questions about home insurance in Kentucky.
How much does homeowners insurance cost in Kentucky?
Kentucky's average monthly home insurance cost is $189 for a dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level and provider. Your credit score and home details also play a crucial role.
How We Determined Our Kentucky Home Insurance Estimates
Kentucky homeowners pay below-average premiums compared to the national average, but costs vary between cities due to weather risks and population density. We designed our research to capture real-world costs across Kentucky's diverse geography, from lower-cost Lexington-Fayette to higher-cost Bowling Green.
Our research approach: We collected quotes using a base profile representing a typical Kentucky home: $250,000 dwelling coverage (protecting a moderately valued Kentucky home), $125,000 personal property coverage (covering typical household belongings), $200,000 liability coverage (standard protection for lawsuits), a home built in 2000 (representing Kentucky's median home age), frame construction (the most common building type), composition roof (standard roofing material), a $1,000 deductible (balancing affordable premiums with manageable out-of-pocket costs), no claims in the past 5+ years (representing stable homeowners without recent losses) and fire protection level of 3 (typical for Kentucky homes with nearby fire stations).
Why these factors matter for Kentucky homeowners: Location is the biggest factor affecting rates, with costs varying by up to 16% between areas due to weather risks, home values and population density. Coverage choices are the second most influential factor, with premiums ranging from $1,153 to $7,543 annually depending on limits and deductibles. Home details like age, construction and roof type are the third most influential factor, with newer homes and superior materials costing less to insure. Provider choice is the fourth factor, with prices ranging from 14% below to 24% above the state average. Credit is also critical, with premiums varying by up to 130% based on credit score, making good credit essential for affordable Kentucky home insurance.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.