The average annual cost of a $300,000 home insurance policy in Lexington, Kentucky, is $2,353. As Lexington is considered one of the most affordable cities in the country to buy a home, its housing costs fall below the national average. Insurance prices are also lower than the average Kentucky homeowners insurance rate of $2,625 for the same coverage.

While housing in Lexington is affordable, the city is at risk for severe weather like tornadoes, especially during the spring and summer months. Comparing homeowners insurance quotes can help you get the coverage you need to fit your budget.

Best home insurance companies in Lexington

Lexington has a strong insurance market with plenty of high-quality home insurance companies to choose from. The best insurance company for you will depend on your home, your budget, and the type of coverage you’re looking for.

Best company for discounts: Allstate

Best company for local service: Kentucky Farm Bureau

Best company for high-value homes: Travelers

Cheapest home insurance in Lexington

If cheap home insurance in Lexington is your priority, Westfield stands out with an average annual rate of $1,105 for a policy with $300,000 in dwelling coverage with a $1,000 deductible. The following table reflects several home insurance companies’ average annual premiums for the same coverage and deductible.

How much is home insurance in Lexington?

In Lexington, homeowners pay an average home insurance cost of $2,353 annually for $300,000 in dwelling coverage. But the exact cost of coverage varies depending on your home’s age, condition, construction, deductible, and ZIP code. Insurance companies also consider your credit and claims history.2

Cost of home insurance by dwelling coverage in Kentucky

Dwelling insurance protects the structure of your home, as well as certain attached structures, like a garage. The amount of dwelling coverage you choose affects your home insurance premium significantly. To ensure your home is sufficiently protected, your insurer may conduct a replacement cost analysis to estimate how much it would cost to rebuild your home using similar materials.

The more dwelling coverage you have, the more your insurer may have to pay if you file a claim, resulting in higher premiums. The table below outlines the average annual premiums for different coverage limits in Kentucky, each with a $1,000 deductible.

Cost of homeowners insurance by deductible amount

Your deductible is the amount your insurer subtracts from your payout for a claim.3 Choosing a higher deductible usually results in lower monthly premiums.

Insurance premiums for $300,000 in coverage with two different deductible amounts are shown in the table below.

Average cost of home insurance in other cities in Kentucky

Home insurance rates in Kentucky can vary widely by city and ZIP code. Factors like tornado risk, proximity to a fire station, and local crime rates all influence insurance premiums. For instance, Louisville has higher average annual home insurance premiums than other Kentucky — possibly due to higher crime rates and a history of flooding.

The following table shows average annual premiums for $300,000 in dwelling coverage with a $1,000 deductible in several Kentucky cities.

What to know about owning a home in Lexington

Several factors can influence your home insurance needs if you own a home in Lexington: 

It’s also important to review your liability coverage limits.4 This coverage protects you financially if someone is injured on your property. It also provides coverage if you damage someone else’s property.