One of the most common questions new homeowners ask is: am I covered for enough? The honest answer is — most people aren’t sure, and a lot of them are underinsured without knowing it. Here’s how to think through the right coverage amounts for your Kentucky home.
Dwelling Coverage: Replacement Cost, Not Market Value
Your dwelling coverage should be based on what it would cost to rebuild your home from scratch — not what you paid for it, and not what it would sell for today. These numbers can be very different. In Kentucky, construction costs have risen significantly in recent years, meaning older policies set before that increase may no longer cover a full rebuild.
A local agent can run a replacement cost estimate based on your home’s square footage, construction type, and features. This is the most important number to get right.
Personal Property: More Than You Think
Standard policies cover your belongings inside the home — furniture, clothing, electronics, appliances. The typical amount is 50–70% of your dwelling coverage, but that’s a formula, not a guarantee it’s enough for your situation. Do a quick mental walkthrough of your home and think about what it would cost to replace everything. Most people significantly underestimate this number.
High-value items like jewelry, firearms, and collectibles often have separate sub-limits. Ask your agent about scheduling those items individually.
Liability Coverage: The Default Is Often Too Low
Most standard policies come with $100,000 in liability coverage. For most Kentucky homeowners, that’s not enough. If someone is injured on your property and sues, medical bills and legal costs can exceed that limit quickly. The good news: increasing liability to $300,000 or even $500,000 typically adds very little to your premium. If you have significant assets, consider an umbrella policy on top.
Common liability exposures in Kentucky suburbs: dog bites, swimming pools, trampolines, and injuries during home renovation work.
Additional Living Expenses
If a covered event — fire, storm damage, tornado — makes your home uninhabitable, additional living expenses (ALE) coverage pays for temporary housing, meals, and other costs while repairs happen. Kentucky’s storm season makes this coverage meaningful. Make sure your ALE limit is realistic for your area.
What Affects Your Premium
The main factors: age of home, roof age and material, claims history, your credit score, location (proximity to fire stations, flood zones), and whether you bundle with auto. If you’re in Shepherdsville, Jeffersontown, or another area we serve, your specific location affects your rate.
Talk to a Local Agent
The right coverage amount isn’t a formula — it’s a conversation. Call (502) 214-3200 or get a quote online and we’ll walk through the numbers for your specific home.
