The Best Homeowners Insurance in Arkansas for 2023 – NerdWallet

The average cost of homeowners insurance in Arkansas is $3,020 per year, or about $252 per month, according to a NerdWallet analysis. That’s more than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in Arkansas. Our sample rates are for a homeowner with good credit and $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible. Your rates will be different.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

See more details about each company to help you decide which one is best for you.

America’s largest home insurer celebrated its 100th anniversary in 2022. One useful endorsement you may be able to add to a State Farm policy is an inflation guard rider, which automatically increases your policy limits to make sure your coverage doesn’t fall short.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

We like Nationwide for its wide variety of coverage options. For example, its standard homeowners insurance policy generally includes ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can add other coverage for things like identity theft and damage from backed-up sewers and drains.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.

USAA sells homeowners insurance to veterans, active military and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.

Homeowners in Arkansas can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart home devices. These include water leak sensors, cameras and thermostats.

The average annual cost of home insurance in Arkansas is $3,020. That’s 66% more than the national average of $1,820.

In most U.S. states, including Arkansas, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Arkansas, those with poor credit pay an average of $6,850 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s more than double what those with good credit pay.

How much you pay for homeowners insurance in Arkansas depends on where you live. For instance, the average cost of home insurance in Little Rock is $2,740 per year, while homeowners in Fayetteville pay $2,590 per year, on average.

Here are the insurers we found with average annual rates below the Arkansas average of $3,020.

From big natural disasters like tornadoes and wildfires to more common, storm-related risks like flooding and hail, here’s what Arkansans should be looking for when shopping for home insurance.

Arkansas is becoming a part of Tornado Alley, the geographic stretch with the highest frequencies of tornadoes in the U.S. Tornadoes and wind storms can damage homes and roofs, sometimes even destroying them.

Wind damage, including any caused by tornadoes, is often included in a standard homeowners insurance policy. Read your policy closely, though, as you may have a separate wind deductible. These are often a flat rate, such as $1,000, or a percentage of your dwelling coverage. For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for wind claims. So if your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $2,500 of wind damage yourself.

Heavy rainfall or rapid snowmelt can overflow rivers, streams, or lakes throughout Arkansas. RiskFactor.com, a website from the nonprofit First Street Foundation, estimates that over 200,000 properties have an above 26% chance of being severely impacted by flooding in the next 30 years.

Standard homeowners insurance policies typically don’t cover flood damage. As a result, homeowners in flood-prone areas may need to purchase separate flood insurance to protect their property from water damage.

Remember that while you can purchase flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Hailstorms are frequent in Arkansas throughout the spring and summer storm seasons. Homeowners may have to deal with hail damage to roofs, windows and siding, leading to costly repairs or replacements.

Hail damage is typically included in your standard home insurance policy, but make sure to read your policy closely, as it may come with a separate deductible.

While not a common risk in Arkansas, wildfires can still be a danger for homeowners, particularly in dry and wooded areas. Homes can be destroyed or damaged by flames, smoke and heat. Luckily, standard home insurance policies cover damage from wildfires.

Pay particular attention to your dwelling coverage limit. This is the amount the insurance company will pay to rebuild your house. A significant fire can destroy your whole home, so talk with your insurer to ensure you have enough coverage to rebuild if necessary.

While generally uncommon in Arkansas, earthquakes are still a risk factor for homeowners to consider when shopping for insurance. As part of the New Madrid Seismic Zone, minor earthquakes are not infrequent. These quakes can cause substantial damage to structures and personal belongings.

Standard homeowners insurance policies don’t typically cover structural damage due to an earthquake. Review your policy carefully, and if you live in an area with higher risk, consider purchasing additional earthquake insurance.

When purchasing earthquake insurance, pay attention to the deductibles, so you know the potential out-of-pocket costs. Your earthquake insurance often has a separate deductible, which can be around 5% to 25% of the coverage on your policy. For example, if you have a 20% deductible on $200,000 of coverage, you would need to pay a $40,000 deductible for earthquake damage before your insurance kicks in.

The Arkansas Insurance Department regulates the state’s insurance industry and provides helpful information, as well as consumer protection. If you need to file a complaint against your insurance company, you can do so using the online Consumer Complaint Form.

If you have questions about filing a complaint or about insurance protections the Arkansas Insurance Department can offer, contact the Consumer Services division at 800-852-5494 or by email at [email protected]

Amanda Shapland contributed to this story.