Homeowners Insurance Laws in Kentucky
As of October 2010, Kentuckians paid an average of $765 in homeowners insurance per year, per property, according to the website HomeInsurance.com. Kentuckians spent nearly $100 more than the national average, which for the same month equaled approximately $670. The rates for homeowners insurance in Kentucky vary by county, with some areas, such as the flood-susceptible Ashland, carrying higher premiums.
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Kentucky Coverage
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Kentucky homeowners insurance covers disasters such as hail, fire, theft, vandalism, falling objects, vehicle or aircraft crashes and smoke damage. Depending on where you live within the state, your premium may be higher in certain high-crime areas or in places where natural disasters are common.
Basic Plans
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A basic HO-1 homeowners policy in Kentucky covers the physical dwelling of the home, as well as other structures on the property such as sheds or detached garages. If any personal belongings are destroyed in a disaster, your policy will generally provide for replacement of your possessions, along with any relocation, food and housing expenses if you need a temporary place to stay after the event. Kentucky homeowners insurance policies also offer personal liability protection and medical coverage, which kick in if a person other than the policy holder or a family member is injured in the home.
State Regulation
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In the U.S., your bank lender typically requires homeowners insurance if there is a mortgage on your home, but there are no state-mandated coverage laws in Kentucky or any other state. The amount of coverage you purchase also depends upon your mortgage agreement, so shopping around for an affordable bank lender can help you save on homeowners insurance.
Flood and Earthquake Protection
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In Kentucky, floods are the number-one cause of home damage in the state, but they are not covered as part of your homeowners insurance policy, reports the Federal Emergency Management Agency, or FEMA. To protect your home from flood damage, FEMA recommends purchasing flood insurance from the National Flood Insurance Program, or NFIP. For a link to the NFIP website, which provides rate information for all areas of Kentucky, see Resources. The website Insure.com also recommends that Kentucky homeowners purchase additional earthquake coverage, as parts of the state are just above the New Madrid Fault, and most policies do not cover it.
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