Question 1

What is the minimum auto insurance required in Kentucky?

Accepted Answer

Kentucky requires minimum liability coverage of 25/50/25 — $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage. Kentucky is also a choice no-fault state requiring Personal Injury Protection (PIP) of at least $10,000 unless you opt out in writing.

Question 2

Does home insurance cover flood damage in Kentucky?

Accepted Answer

Standard homeowners insurance policies do NOT cover flood damage. Flood insurance is a separate policy, typically purchased through the National Flood Insurance Program (NFIP) or a private carrier. Given Kentucky's history of flooding, we strongly recommend evaluating your flood risk.

Question 3

What is an independent insurance agency?

Accepted Answer

An independent insurance agency represents multiple insurance carriers, not just one. This means they can shop your coverage across companies like Nationwide, Travelers, Liberty Mutual, and more to find you the best combination of coverage and price. They work for you — not the insurance company.

Question 4

Is workers compensation insurance required in Kentucky?

Accepted Answer

Yes. Kentucky law requires most employers to carry workers compensation insurance. It covers medical expenses and lost wages for employees injured on the job and protects employers from most employee lawsuits related to workplace injuries.

Question 5

What does choice no-fault mean for Kentucky drivers?

Accepted Answer

Kentucky is a choice no-fault state, meaning drivers can choose between the no-fault system (where your own PIP coverage pays your medical expenses regardless of fault) or the traditional tort system (where the at-fault driver's liability insurance pays). You can opt out of no-fault in writing.

Question 6

How can I lower my auto insurance premium in Kentucky?

Accepted Answer

You can lower your auto insurance premium by bundling auto and home insurance, maintaining a clean driving record, increasing your deductible, taking a defensive driving course, asking about multi-vehicle or good student discounts, and working with an independent agent who can shop multiple carriers on your behalf.

Question 7

What is a Business Owner's Policy (BOP) and does my Kentucky business need one?

Accepted Answer

A Business Owner's Policy (BOP) bundles General Liability and Commercial Property insurance at a discounted rate. It is ideal for small to mid-size Kentucky businesses and is one of the most cost-effective ways to get comprehensive business coverage.

Question 8

Does my homeowners insurance cover my boat or ATV in Kentucky?

Accepted Answer

Standard homeowners policies typically provide very limited coverage for recreational vehicles — often only a small amount for property damage and usually no liability coverage when the vehicle is away from your property. A dedicated recreational vehicle policy provides comprehensive protection including physical damage, liability, and uninsured motorist coverage.

Question 9

What is a surety bond and does my Kentucky business need one?

Accepted Answer

A surety bond is a three-party agreement guaranteeing a business or individual will fulfill their obligations. Many Kentucky professions require bonds — contractors, auto dealers, mortgage brokers, and more. Unlike insurance, a surety bond protects the party requiring the bond, not the bondholder.

Question 10

Which insurance carriers does Diversified Insurance Partners work with?

Accepted Answer

Diversified Insurance Partners is appointed with Nationwide, Geico, Travelers, Liberty Mutual, Grange, National General, Encompass, Kentucky National, Stillwater, and Foremost, among others. This allows us to shop the market and find the best rates for each client's unique situation.

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