If you’re looking for ways to cut costs, finding the best deal on homeowners insurance is a great place to start. We evaluated average rates for some of the major home insurance companies in Arkansas to help you find cheap homeowners insurance.

Cheap Home Insurance in Arkansas Cost Comparison

Company Average annual home insurance cost in Arkansas
State Auto
$1,254
Farm Bureau Mutual of Arkansas
$2,181
$2,202
Shelter
$2,337
$2,458
$2,691
$3,643
$4,826
$3,655
Source: Quadrant Information Services, based on dwelling coverage of $300,000

If you’re on the lookout for home insurance at a reasonable rate, you’ll want to compare home insurance quotes from multiple companies. Home insurance costs can vary significantly from one insurance company to the next. You won’t know how much you can save until you shop around.

But don’t rely solely on price. The best home insurance companies will also offer coverages and home insurance discounts that match your needs.

Arkansas Homeowners Insurance Cost Factors

Your ability to get cheap homeowners insurance on Arkansas homeowners insurance will depend on several factors, such as:

  • The coverage amount and limits you choose for your policy
  • Your chosen deductible amount
  • The materials your home is made of
  • The age of your home
  • The expense to rebuild your home at today’s costs
  • The fire rating of your home’s location
  • The claims history of your home
  • Your personal claims history
  • Your credit
  • Your location

What Does Arkansas Homeowners Insurance Cover?

Your typical Arkansas home insurance policy (termed HO-3) protects your home for any issues that aren’t excluded in the policy. Common exclusions of an HO-3 policy include war, nuclear hazard, power failure, earthquakes, sinkholes, wear and tear, neglect and vermin and insect infestations.

Your personal property is covered for specific “perils” in a standard home insurance policy. Riot, vandalism, theft, tornadoes, fire and explosions are just some of the problems covered by home insurance.

In addition to knowing what home insurance covers, it’s also a good idea to familiarize yourself with how home insurance works to protect you. That way you can determine how much home insurance you need.

The main coverage areas of a standard homeowners policy include:

  • Dwelling: This pays to repair or rebuild your home if it’s damaged. It also covers attached structures, like a deck, porch or garage.
  • Other structures: This pays to repair or replace structures not attached to your home, like a guesthouse, fence or shed.
  • Personal property: This type of homeowners insurance pays to repair or replace your belongings after a problem like theft or fire. Your personal belongings include things like your electronics, appliances, clothing, furniture, rugs and jewelry.
  • Liability: This coverage pays, up to your policy limits, for property damage and injuries you accidentally do to others. For instance, if you accidentally throw a football through your neighbor’s window, your liability insurance will cover a settlement or court judgment against you. The coverage also covers your legal defense costs.
  • Medical payments to others: This covers small injury claims made by people not in your household, regardless of fault. For example, if a guest trips on a rug in your foyer and is hurt, medical payments coverage could pay for their visit to urgent care. Coverage amounts are on the smaller side, such as $1,000.
  • Additional living expenses: If you’re unable to live in your home due to an event covered by your policy (like a fire), additional living expenses coverage pays for extra costs you incur such as a hotel bill, meals out and other necessary services, like a pet boarding service.

What’s Not Covered by Homeowners Insurance in Arkansas?

Common exclusions found in a standard home insurance policy include issues such as floods, earth movement (earthquakes, sinkholes, mudslides or mudflows), power failure, neglect, wear and tear, vermin, birds, rodents and insect infestations and intentional loss.

It’s wise to read your policy closely to understand what is excluded from coverage.

Flood Insurance in Arkansas

Your standard homeowners insurance policy won’t cover flood damage. And with flooding becoming more frequent across the country, you may want to consider flood insurance if your Arkansas property is at risk.

Financial assistance from the government after a flood can be limited. It’s best to have your own flood insurance to look to. Most people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available if you shop around.

If you qualify, FEMA’s Individuals and Households Program (IHP) can provide monetary and direct assistance after a major disaster or emergency. This program helps people find housing after an event directly caused by a disaster and that’s not covered by insurance or other sources.

Earthquake Insurance in Arkansas

The Natural State may not be thought of as a hub for earthquakes, but Arkansas has its share of them. It is close enough to the New Madrid Seismic Zone (NMSZ) that the state is affected by earthquakes.

Arkansas has at least hundreds of faults, if not more. However, most earthquakes occurring in Arkansas are barely felt and cause slight to no damage. The NMSZ, though, is being watched since a major shock there would do some real harm to home and property.

If you are worried about earthquakes affecting your home and want coverage for any potential damage, you’ll need to buy a separate earthquake insurance policy. A standard home insurance policy doesn’t cover earthquakes.

Earthquake insurance typically covers:

  • Dwelling
  • Personal property
  • Other structures
  • Additional living expenses

Earthquake insurance may have a separate deductible from your home insurance, usually between 10% to 25% of the dwelling’s policy limit.

Tips for Buying Arkansas Homeowners Insurance

Whether you’re about to close on your first house or are thinking about switching home insurance companies, you want to find an affordable policy without sacrificing coverage. Here are guidelines for both newcomers and longtime homeowners:

  • Assess your rebuilding costs. Speak to a trusted contractor or your insurance company about what it would cost to rebuild your home with similar materials, based on labor costs in your area. You want your dwelling coverage amount to be at least equal to this estimate.
  • Evaluate how much liability protection you need. Look to buy an amount that matches the value of what could be taken from you in a lawsuit, or at least $300,000.
  • Review benefits of replacement cost instead of actual cash value. Do you want the amount you need to replace your items with new versions? If so, consider replacement cost coverage; otherwise actual cash value gives you a diminished value for your belongings.
  • Consider add-on coverage for your belongings. If you have expensive belongings, such as musical or sports equipment or jewelry, you should consider scheduling personal property for these pricey possessions. That way they will be insured for their full value.
  • Look for coverage gaps. Some home insurance companies offer add-on benefits, for instance, to help pay for damage from sewer backups. They can also provide higher landscaping limits for items such as trees and specialty plants. Your standard policy limits coverage to a percentage of your dwelling insurance amount.
  • Research financial ratings. Review financial strength ratings from companies such as A.M. Best or Standard & Poor’s. Some institutions may not offer you a mortgage unless your insurance company has at least an “A” financial strength rating.
  • Ask for discounts. Make sure you’re receiving all the discounts that match your homeowner profile. For example, you may get a discount for bundling your auto and home insurance from the same company, or for being part of an alumni group or living in a gated community.
  • Compare quotes from multiple insurance companies. The price for the same coverage, limits and deductibles can vary significantly from one insurer to the next. If you don’t shop around, you won’t know how much you can potentially save.

 

Methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.