Homeowners Insurance in Arkansas
From the breathtaking Ozark Mountains to the many lakes and rivers that define its landscape, Arkansas lives up to its nickname, the Natural State.
Whether you live in Little Rock, Fayetteville, or a quiet rural town in one of the happiest states of the country, Arkansas offers a beautiful place to call home. However, with that beauty also comes risks.
The state frequently experiences severe weather, including tornadoes and strong storms, which can cause significant property damage. Additionally, property crime is a concern, as Arkansas has 23% more property-related crime than the national average, ranking sixth highest in the nation.
Homeowners insurance can provide financial protection for your home and personal property in the event of certain covered losses, such as weather-related damage or theft.
This article will explain all you need to know about homeowners insurance in Arkansas, including how much it costs, factors that influence its rates, and more.
What is the average homeowners insurance cost in Arkansas?
Do you wonder how much average home insurance costs in Arkansas? The average cost of homeowners insurance in Arkansas is $3,355 per year, which is 75% higher than the national average of $1,915.
Homeowners insurance companies in Arkansas often determine your house insurance rates based on factors such as:
- ZIP code
- Home age and construction
- Coverage limits and deductible
- Insurance claim history
While most home insurance policies offer similar coverage, prices can vary because insurance carriers in Arkansas assess risk differently. Curious about Arkansas homeowners insurance costs over the past five years? The table below shows the average home insurance cost in Arkansas, but keep in mind that city-specific rates can vary based on population, property values, and local weather risks.
Year | Average Annual Premium |
|---|---|
2025 | $3,355 |
2024 | $3,948 |
2023 | $2,942 |
2022 | $2,447 |
2021 | $1,611 |
Arkansas Home Insurance Premiums
What factors influence your home insurance rate?
Some factors that affect your Arkansas home insurance rates are specific to you as a homeowner, while others are based on your home’s structure and location. Your policy details will also play a role in determining your premium.
In general, insurance companies calculate rates based on risk. If they believe you’re more likely to file a claim or experience damage from a covered event, you’ll likely pay higher-than-average premiums.
That said, here are some of the common factors that influence how much you’ll pay for home insurance in Arkansas:
- Location or zip code: Where your house or property is located affects your insurance costs. Factors such as local construction costs, building codes, weather risks, crime rates, and how close you are to a fire department all matter. For instance, if your neighborhood has a high rate of vandalism or theft, your premium may be higher than in a lower-crime area.
- Home age and condition: Older homes or those with outdated major systems (HVAC, roof, plumbing, and furnace) often have higher insurance rates since they may require more repairs.
- Credit score: Your insurance company will consider your credit score when assessing risk. A higher credit score suggests you’re more likely to pay premiums on time and keep up with home maintenance, which can lead to lower rates.
- Additional coverage (endorsements): If you add extra coverage for specific risks, such as flood insurance or high-value items, your homeowners insurance in Arkansas will increase.
- Deductible amount: Choosing a higher deductive may lower your insurance premium. However, you’ll have to pay more out of pocket before insurance kicks in.
- Claims history: People who have made multiple claims often pay high insurance rates.
Common insurance discounts in Arkansas
Whether you’re shopping for Arkansas home insurance or already have a policy, you know protecting your home is necessary. Homeowners insurance can offer financial protection against certain unexpected events, and it's often required by mortgage lenders as a condition for loan approval.
In an ideal world, you’ll never need to file a claim, which makes it natural to want to lower your insurance costs. Fortunately, there are numerous discounts available that could help reduce your premiums.
Here are a few common insurance discounts you’ll find in Arkansas.
- Home and auto bundling discount: If you purchase both home and auto insurance or renters insurance from the same company, you may qualify for a bundling discount. This can significantly lower overall costs and help you manage policies under one provider. Some homeowners in Arkansas save up to 10% by bundling their insurance.
- Paid in full discount: Paying your annual premium upfront instead of monthly installments could often result in a small discount.
- Claims-free discount: If you have gone several years without filing a house insurance claim in Arkansas, your insurer may reward you with lower premiums. This is often called a claims-free or no-claims discount.
- Loyalty discount: Stick with the same insurance company for five years or more, and you may qualify for a loyalty discount. However, you should still compare home insurance quotes in Arkansas regularly to ensure you get the best homeowners insurance at the best price.
- New home construction discount: Newly built homes often come with lower insurance rates because they have updated electrical systems, plumbing, and roofing. You may qualify for this discount if your home was built recently.
- Protective devices discount: Installing safety systems such as a central fire alarm, security system, or fire sprinklers could earn you a discount. If you have recently upgraded your home with protective devices, make sure to inform your insurer to take advantage of potential savings.
- Smart home discount: When you add smart home technology, such as smart locks, leak detectors, or gas sensors, chances are it could lead to savings. Some of the best homeowners insurance in Arkansas even offer discounts on smart home devices purchased through specific partners .
Tips for lowering home insurance rates
Most homeowners receive a policy renewal notice before the renewal date. This is the perfect time to review your home insurance coverage, premiums, and discounts to ensure you still get the best deal.
If you are looking for cheap homeowners insurance in Arkansas, here are some tips to help lower your costs:
- Limit your claims: Filing multiple claims within a short time may raise your premium and make your home seem risky to insure. Keep up with home maintenance: A well-maintained home is less likely to face coverage limitations or denied claims. Make sure to regularly inspect your roof, plumbing, and electrical systems to ensure they meet Arkansas homeowners insurance laws and guidelines.
- Reduce your risks: Arkansas – also called the Natural State – has seen an increase in tornadoes in recent years. Taking proactive steps to protect your home may lower your premium and qualify you for a mitigation discount.
- Ask about discounts: If your renewal premium is higher than expected, talk to your insurance provider about available discounts. Bundling your Arkansas homeowners insurance with auto coverage, installing security systems, or upgrading your home’s safety features could help you save big.
- Shop for policies early: You don’t have to wait until your renewal date to compare policies. Many providers offer an early-bird discount if you purchase a new policy weeks before your current one expires. With homeowners insurance in Arkansas, getting an estimate in advance can help you find the best house insurance policies.
What does Arkansas home insurance typically cover?
Homeowners insurance in Arkansas could protect your house and belongings from unforeseen events such as fire, theft, and storm damage. It may also provide liability coverage if someone gets injured on your property or you accidentally damage someone else's home.
Looking for the best home insurance in Arkansas? It’s important to understand what standard coverage includes.
Dwelling coverage
This coverage could help cover damage to your home and any attached structures. For example, if a tree falls on your roof during a storm, your dwelling policy may help cover the repair costs.
Personal property coverage
This coverage protects your personal property if it gets stolen or damaged in a covered event. If someone breaks into your home and steals your laptop, this coverage could help pay for a replacement.
Personal liability coverage
In case you accidentally damage someone else’s property or they get injured on your property, this coverage could help. For instance, if your child accidentally breaks a neighbor’s window, your insurance could help pay for the damages.
Other structures coverage
This coverage applies to detached structures like fences, garages, and sheds. If a car crashes into your fence, your AR home insurance could help cover the repair costs.
Loss of use coverage
If your home is damaged and uninhabitable, this coverage could help pay for the expenses of your temporary stay, such as hotel and meals, up to your policy limits.
Medical payments coverage
If a guest gets hurt while on your property, this coverage could help pay for their medical expenses. For instance, if your neighbor slips on your walkway, your insurance can help cover their hospital bills.
Compare policies from different providers to find the best and cheapest home insurance in Arkansas.
Additional Arkansas insurance coverage options
No matter whether you have homeowners insurance in Little Rock, Fayetteville, or Jonesboro, AR, it may not include all the protection you need. That’s where endorsements – optional add-ons – come in. These can help you build a more comprehensive policy to suit your specific needs.
Here are some common endorsements and standalone policies Arkansans should consider:
- Flood insurance: Standard home insurance in Arkansas typically does not cover flood damage. If you live in a flood-prone area, you may want to add a separate flood insurance policy. These are often backed by the National Flood Insurance Program (NFIP) but may also be available through private insurers.
- Scheduled personal property coverage: High-value items such as fine jewelry, collectibles, or electronics may not be fully covered under a standard policy. Adding scheduled personal property coverage ensures these items are protected up to their full value.
- Identity theft coverage: With identity theft on the rise, this coverage could help with expenses related to restoring your identity, such as legal fees and credit monitoring services.
- Umbrella insurance: If you exceed the liability limits on your home insurance policy, umbrella coverage provides additional protection to safeguard your assets.
- Sump pump and water backup coverage: Damage from sewage backup or sump pump overflow is not typically covered under a standard policy. Add this endorsement, as it could help protect your home from costly water damage due to heavy storms or drainage issues.
What coverage is recommended in Arkansas?
Given the state’s susceptibility to certain natural disasters, it’s advisable to consider:
- Windstorm and Tornado Coverage: Arkansas experiences frequent tornadoes and strong storms, which can cause severe damage. For instance, 168 severe storms occur every year in Arkansas. Even the best home insurance companies in Arkansas may have exclusions or high deductibles for wind damage, so it’s crucial to confirm your coverage.
- Flood Insurance: Standard homeowners insurance does not cover flooding, . Since heavy rains and flash floods are common in Arkansas, purchasing separate flood insurance through the National Flood Insurance Program (NFIP) or a private insurer is highly recommended.
- Replacement Cost Coverage: Instead of receiving the depreciated value of your home and belongings, this coverage ensures you get enough money to fully rebuild or replace damaged property without losing value over time.
Insuring your home in Arkansas
Finding homeowners insurance in Arkansas can be a straightforward process when you're familiar with the steps involved and understand your coverage needs.
Listed below are the steps to insure your home in Arkansas:
- Assess your coverage needs: First, evaluate the risks your home may face. Arkansas is prone to severe storms, tornadoes, and flooding, so you’ll want to consider additional coverage beyond a standard policy. Take inventory of your belongings to determine how much personal property coverage you need.
- Compare quotes from multiple insurers: The average cost of homeowners insurance in Arkansas can vary significantly between providers. Get quotes from different companies to find the best combination of price, coverage, and customer service. Many insurers offer online tools that allow you to get a quote in minutes.
- Understand policy terms and coverage limits: Carefully review what’s included in your policy. Make sure you understand coverage limits, deductibles, and any exclusions. If your home is in a high-risk area, you may need separate flood or windstorm insurance.
- Take advantage of discounts: Many insurance providers offer discounts for bundling policies, installing security systems, or having a claims-free history. Ask your insurer about available discounts to lower your premium.
- Finalize your policy and stay up to date: Once you’ve chosen a policy, review it annually to ensure it still meets your needs. If you make home improvements or purchase high-value items, you may need to update your coverage.
Is Arkansas homeowners insurance required by law?
Unlike car insurance, homeowners insurance in Arkansas is not required by law – or in any other state. However, if you have a mortgage, the lender may require you to carry a policy to protect their investment.
Insurance is still a smart choice if you own your home outright. The best home insurance in Arkansas could help protect your property from major risks such as fires, theft, and vandalism. Without coverage, you could face significant financial losses if disaster strikes.
That said, a standard homeowners policy doesn’t cover everything. Natural disasters like floods and earthquakes typically require separate insurance. If you live in an area prone to these risks, consider adding additional coverage to ensure you're fully protected.
Still have questions?
Want to know more about homeowners insurance in Arkansas? Here are some frequently asked questions:
Why is home insurance so high in Arkansas?
Home insurance rates in Arkansas are higher than the national average due to the state's frequent tornadoes, storms, and flooding risks. Additionally, rising construction costs and inflation have contributed to increasing premiums.
Are insurance companies pulling out of Arkansas?
Some insurers have scaled back operations in Arkansas due to the high number of claims, competitive market conditions, and rising costs of natural disaster damages. However, many companies still offer competitive coverage options in the state.
How much is homeowners insurance in Fayetteville, Arkansas?
The average cost of homeowners insurance in Fayetteville could vary depending on the home's age, location, and risk factors. However, it generally falls around $3,245 per year.
How much is Arkansas condo insurance?
Condo insurance in Arkansas typically costs $585 per year, depending on the level of coverage and location. This insurance covers personal property, liability, and any improvements inside the condo.
Is mortgage insurance required in Arkansas?
If you put less than 20% down on a home, lenders may require private mortgage insurance (PMI). This provides a safety net to the lender in case you default on your loan but does not replace homeowners insurance.
Looking for homeowners insurance in a different state?
If you seek homeowners insurance in another state, use the map below to find coverage options in your area. Each state will have unique factors influencing insurance rates, so comparing policies is important.
