Insurance FAQs

Home insurance in Lexington, KY typically costs between $1,200 and $2,200 per year, depending on your home’s size, age, construction type, and your chosen coverage limits. Factors like your roof age, proximity to a fire station, and your claims history also affect your rate. As an independent agency, Nova Insurance Group compares rates from multiple carriers to find you the best price. The best way to get an accurate number is a quick quote — it takes about 10 minutes.

A standard home insurance policy in Kentucky covers four main areas: your dwelling (the physical structure of your home), your personal belongings (furniture, electronics, clothing, etc.), liability protection (if someone is injured on your property), and additional living expenses (hotel and meal costs if your home becomes unlivable due to a covered loss). It’s important to know what’s NOT covered by default — flood damage and earthquake damage typically require separate policies.

No — standard home insurance policies do not cover flood damage. This surprises many Kentucky homeowners, especially those near creeks, rivers, or low-lying areas around Lexington. Flood insurance is purchased separately through the National Flood Insurance Program (NFIP) or private flood carriers. Even if you’re not in a high-risk flood zone, flooding can happen anywhere — and just one inch of water can cause tens of thousands of dollars in damage. Nova Insurance Group can help you determine your flood risk and find affordable flood coverage.

Actual cash value (ACV) pays you what your belongings are worth today, after depreciation — so a 10-year-old couch might only get you $50 even if it costs $600 to replace. Replacement cost coverage pays what it actually costs to buy a new equivalent item today, with no depreciation deducted. We always recommend replacement cost coverage for your home and personal property — the premium difference is usually small, but the protection difference can be tens of thousands of dollars after a major claim.

You should review your home insurance any time you make a significant change to your property or life situation. Common triggers include: completing a major renovation or addition, purchasing expensive jewelry, art, or electronics, getting married or divorced, starting a home-based business, installing a pool or trampoline, or when your policy renews each year. Nova Insurance Group recommends an annual coverage review for all of our Lexington, KY clients to make sure your policy keeps up with the value of your home.

It can, depending on the type and size of the claim and your carrier’s policies. Typically, one small claim may not affect your rate significantly, but multiple claims in a short period can lead to a premium increase or, in some cases, non-renewal. Before filing a claim, it’s worth calling us to talk through the situation — sometimes it makes more financial sense to pay out of pocket for smaller repairs to protect your long-term rate. We can help you make that decision.

Kentucky requires all drivers to carry a minimum of 25/50/25 liability coverage — that’s $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, which means you can choose whether or not to include Personal Injury Protection (PIP) on your policy. While these are the legal minimums, most insurance professionals — including our team at Nova Insurance Group — recommend higher limits to protect your assets if you’re involved in a serious accident.

There are several effective ways to lower your auto insurance rate in Kentucky. Bundling your auto and home insurance with the same carrier typically saves 10-20%. Maintaining a clean driving record, taking a defensive driving course, raising your deductible, and qualifying for good student or low-mileage discounts can all reduce your premium. As an independent agency, Nova Insurance Group shops your rate across multiple carriers every renewal to make sure you’re always getting the best available price.

A speeding ticket or at-fault accident will typically cause your rate to increase at your next renewal, often by 15-40% depending on the severity. The increase can stay on your record for 3-5 years. However, not all carriers treat violations the same way — some are much more forgiving than others. If your rate goes up significantly after a violation, call us. As an independent agency, we can shop your coverage across multiple carriers and often find a better rate than what your current company is offering.

While uninsured motorist coverage isn’t technically required in Kentucky, we strongly recommend it. Approximately 1 in 6 drivers on Kentucky roads is uninsured. If an uninsured driver hits you and causes injuries or damages, uninsured motorist coverage steps in to pay your medical bills and repair costs that the at-fault driver cannot pay. It’s one of the most valuable and affordable coverages available, and we consider it essential for Lexington, KY drivers.

Yes, and it’s important to add them as soon as they have their license. Teens can be added to your existing policy, which is typically more affordable than getting them their own policy. The cost varies widely based on your carrier, the teen’s driving record, their grades (good student discounts apply), and the vehicle they’ll be driving. Many carriers offer significant discounts for teens who maintain a B average or better. Call us and we’ll compare rates across our carrier network to find the best option for your family.

Gap insurance covers the difference between what you owe on your car loan or lease and what your car is actually worth if it’s totaled or stolen. New vehicles can lose 20-30% of their value in the first year, so if you financed your car with little or no down payment, you could owe more than the car is worth. Gap insurance protects you from being stuck making payments on a car you no longer have. We generally recommend it for anyone who financed a vehicle in the past 1-3 years.

A common rule of thumb is to carry life insurance equal to 10-12 times your annual income, but the right amount depends on your specific situation. Key factors include your outstanding debts (mortgage, car loans, student loans), the number of dependents you support, your spouse’s income, your children’s future education costs, and any final expenses you want covered. Nova Insurance Group offers free life insurance needs analysis for Lexington, KY families — we’ll help you figure out the right number without any pressure.

Term life insurance covers you for a specific period — typically 10, 20, or 30 years — and pays a death benefit if you pass away during that term. It’s straightforward and very affordable, making it the right choice for most families. Whole life insurance lasts your entire lifetime and builds cash value over time, but it costs significantly more. Most financial professionals recommend term life for the core of your coverage, with whole life used for specific estate planning or long-term needs. We’ll help you understand which option fits your goals and budget.

Yes — in many cases, you can still get life insurance even with health conditions like diabetes, high blood pressure, or a history of cancer. The rate you pay will depend on the type and severity of your condition, how well it’s managed, and which carrier you choose. Some carriers are much more favorable toward certain conditions than others. As an independent agency, Nova Insurance Group works with many different life insurance carriers and can find the one most likely to offer you the best rate for your situation.

The best time to buy life insurance is as soon as you need it — and the younger and healthier you are when you buy, the lower your rate will be for the life of the policy. Major life events that signal it’s time to review your coverage include: getting married, having a child, buying a home, starting a business, or receiving a significant income increase. If you’re in the Lexington, KY area and have never had a life insurance review, we recommend scheduling a conversation with our team — it takes about 15-20 minutes and could make an enormous difference for your family’s financial security.

Group life insurance provided by an employer typically does NOT follow you when you leave — it ends when your employment ends. This is an important gap that many people don’t realize until it’s too late. If you rely on your employer for life insurance coverage, we strongly recommend getting an individual policy that you own and control regardless of where you work. Individual policies are often more affordable than people expect, especially if you’re in good health.

When a loved one passes away, filing a life insurance claim is a straightforward process. You’ll need to contact the insurance carrier, complete a claim form, and provide a certified copy of the death certificate. In most cases, carriers pay claims within 7-10 business days once all documents are received. One of the advantages of working with Nova Insurance Group is that we’re here to guide your family through this process during a difficult time — you don’t have to navigate it alone.

The right coverage depends on your business type, size, and industry, but most Kentucky businesses should have at minimum: General Liability Insurance (protects against third-party injury and property damage claims), Commercial Property Insurance (covers your building, equipment, and inventory), and if you have employees, Workers’ Compensation (required by law in Kentucky for most businesses with one or more employees). Many small businesses in the Lexington, KY area benefit from a Business Owners Policy (BOP), which bundles several essential coverages at a discounted rate.

Yes — Kentucky law requires most businesses with one or more employees to carry Workers’ Compensation insurance. Workers’ Comp covers medical expenses and lost wages for employees who are injured on the job, and also protects your business from lawsuits related to workplace injuries. Failure to carry required Workers’ Comp coverage can result in significant fines and legal liability. Nova Insurance Group can help you find the right Workers’ Comp coverage for your Lexington, KY business at a competitive rate.

A Business Owners Policy (BOP) is a bundled insurance package designed for small and medium-sized businesses that combines General Liability, Commercial Property, and Business Interruption Insurance in one policy — typically at a lower cost than buying each coverage separately. A BOP is a great fit for businesses that operate from a physical location, have business property to protect, and have relatively straightforward operations. It may not be sufficient for higher-risk industries or businesses with more complex needs. We’ll help you evaluate whether a BOP is the right foundation for your coverage.

General Liability insurance (GL) protects your business against claims from third parties — customers, vendors, or the general public — for bodily injury, property damage, or personal and advertising injury caused by your business operations or products. For example, if a customer slips and falls in your store, GL pays for their medical bills and legal defense if they sue. It also covers damage your employees cause to a client’s property while on the job. General Liability is the foundation of almost every business insurance program.

Business insurance costs vary widely depending on your industry, revenue, number of employees, claims history, and coverage limits. A small retail shop or consulting firm might pay $500-$1,500 per year for a basic BOP, while a contractor or manufacturer may pay significantly more. The best way to get an accurate figure is to request a quote from Nova Insurance Group — we’ll shop your coverage across multiple carriers and find the right combination of protection and price for your Lexington, KY business.

Generally, no. Standard homeowner’s insurance specifically excludes business activities and business property. If you run a business from your home — even part-time — and a client is injured at your home, or your business equipment is damaged or stolen, your homeowner’s policy likely will not cover it. Home-based business coverage can typically be added as an endorsement to your homeowner’s policy for very little additional cost, or you may need a separate business policy depending on your situation. This is one of the most commonly overlooked coverage gaps we see in Lexington.

An annuity is a financial product issued by an insurance company that is designed to provide a steady income stream, typically during retirement. You make a lump-sum payment or a series of payments, and in return, the insurer promises to make periodic payments to you beginning either immediately or at a future date. Annuities are primarily used to reduce the risk of outliving your money in retirement. Nova Insurance Group works with multiple highly-rated carriers to help Lexington, KY residents find annuity solutions that fit their retirement goals.

A fixed annuity guarantees a set interest rate for a specific period, giving you predictable, stable growth regardless of market conditions — similar to a CD but with additional insurance benefits. A variable annuity ties your returns to investment subaccounts (like mutual funds), meaning your value can grow more in strong markets but can also lose value in down markets. A third popular option is the fixed indexed annuity, which offers growth potential linked to a market index (like the S&P 500) while protecting your principal from market losses. We help clients understand which type aligns best with their risk tolerance and retirement timeline.

Annuities can be an excellent retirement planning tool for the right person — particularly those who want guaranteed lifetime income, are concerned about outliving their savings, or have already maxed out their 401(k) and IRA contributions and are looking for additional tax-deferred growth. However, annuities are not right for everyone. They often come with surrender charges if you need access to your money early, and some have higher fees than other investment options. We always recommend a thorough review of your full financial picture before recommending an annuity.

No — annuities and life insurance serve different purposes and should not be used interchangeably. Life insurance is designed to provide a death benefit to your beneficiaries when you pass away. An annuity is designed to provide income to YOU during your lifetime. Some annuities do offer a death benefit feature, but it is not a substitute for proper life insurance coverage. Most comprehensive retirement plans include both life insurance and an annuity component working together. Nova Insurance Group can help you understand how both fit into your overall financial security plan.

What happens at death depends on the type of annuity and the payout option you selected. If you pass away during the accumulation phase (before income payments begin), most annuities will pay the remaining value to your named beneficiary — avoiding probate. If you’re in the income phase, your beneficiary may receive continued payments, a lump sum, or nothing, depending on the payout option you chose. Options like “joint and survivor” or “period certain” allow you to ensure your spouse or heirs are protected. This is an important conversation to have when setting up your annuity, and our team walks every client through these choices carefully.

Annuities grow on a tax-deferred basis, meaning you don’t pay taxes on the earnings until you withdraw money. When you do withdraw, the earnings portion is taxed as ordinary income (not at capital gains rates). If you withdraw money before age 59½, you may also owe a 10% IRS early withdrawal penalty in addition to income tax. Annuities purchased inside an IRA or 401(k) are taxed differently than those purchased outside of retirement accounts. Because annuity taxation can be complex, we always recommend speaking with a tax advisor in addition to our insurance team.