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Kentucky homeowners continue to benefit from relatively low homeowners insurance costs compared with much of the U.S.
While insurance premiums are rising sharply in coastal and climate-vulnerable states, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Kentucky households remain on the affordable side of the spectrum.
Kentucky’s Insurance Costs Stay Affordable
According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Kentucky homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage also average $1,000–$1,499. Overall statewide costs fall into the $1,000–$1,499 range.
Kentucky has 1,270,744 insured homeowner households in total—695,632 with a mortgage and 575,112 without. Among mortgaged owners, 68,706 pay less than $100 annually and 30,364 pay $4,000 or more. Among those without a mortgage, 152,092 pay less than $100 and 21,217 pay $4,000 or more.
Compared with nearby states, Kentucky is on the lower end. Indiana, Illinois, and Ohio homeowners with a mortgage all average $1,000–$1,499, aligning with Kentucky. Tennessee also falls into the same range. By contrast, Missouri homeowners with a mortgage typically pay $1,500–$1,999, while West Virginia’s non-mortgaged homeowners average just $800–$999, slightly lower than Kentucky. This makes Kentucky one of the more affordable states in the region, though not the very lowest.
Climate Risks Across the Region
The Realtor.com 2025 Climate Risk Report highlights how climate risks are driving premiums in other states. Miami, for example, has the highest insurance burden in the nation, with average annual premiums of $22,718, or 3.7% of median home value. Florida metros like Cape Coral and Tampa also rank among the most expensive.
Kentucky does not appear in the report’s rankings of metros with the steepest insurance burdens or most severe flood, hurricane, or wildfire exposures. However, the state is vulnerable to tornadoes, flooding along river systems, and severe thunderstorms.
These events may not place Kentucky in the same category as Gulf or West Coast states, but they remain significant risks for homeowners.
A National Affordability Struggle
Even with Kentucky’s relatively low costs, affordability remains a growing national concern. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already struggled with renewing or obtaining coverage.
Premium hikes are also influencing buyer behavior. Nearly 30% of homebuyers said they had completely changed the areas they were searching in because of insurance challenges, while another quarter said they had overhauled their strategies altogether. Even more striking, 58% of homeowners nationwide said they would consider dropping their coverage altogether if costs rose too high, with younger generations the most likely to take that risk.
For Kentucky homeowners, the relatively low costs provide stability at a time when insurance affordability is one of the top issues in housing markets across the country. Still, with climate risks intensifying nationally, maintaining that advantage may become more difficult in the years ahead.
This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.