Best homeowners insurance in Arkansas for 2023

USAA

Best for military-focused coverage options

Rating: 3.7 stars out of 5

3.7 Bankrate Score

JD Power: 884/1,000 AM Best: A++

Average annual premium

^$ 1,604 for $250k dwelling coverage

USAA Review Get a personalized quote

Average annual premium

^$ 1,604 for $250k dwelling coverage

USAA Review Get a personalized quote

• Overview
• Pros and cons
• Average annual premium by city

Why USAA made our list: For active or retired military members and their families living in Arkansas, USAA may be a great homeowners insurance provider to consider. Policies include coverage for military uniforms, and USAA is also a lender of Veterans Administration loans. Although it is technically not eligible for ranking, USAA consistently scores highly on J.D. Power customer satisfaction studies. In addition to low average rates, policyholders may earn a discount for installing protective devices and maintaining continuous coverage with USAA.

Who USAA may be good for: If you are stationed at Pine Bluff, Fort Chaffee or Camp Joseph Robinson, or if you are retired from an Arkansas military installation, USAA may be a great homeowners insurance company for you.

Pros

• Consistently high rankings for customer service with J.D. Power
• Low average rates in Arkansas

Cons

• Only sells policies to military members, veterans and their immediate families
• Policies are only available online or over the phone

Arkansas city	USAA avg. annual premium for 250K dwelling
Conway	$1,401
Fort Smith	$1,601
Jonesboro	$1,331
Little Rock	$1,531
North Little Rock	$1,467

Travelers

Best for low average rates

Rating: 3.3 stars out of 5

3.3 Bankrate Score

JD Power: 794/1,000 AM Best: A++

Average annual premium

^$ 1,755 for $250k dwelling coverage

Travelers Review Get a personalized quote

Average annual premium

^$ 1,755 for $250k dwelling coverage

Travelers Review Get a personalized quote

• Overview
• Pros and cons
• Average annual premium by city

Why Travelers made our list: For shoppers on a budget, Travelers' offers low average rates in Arkansas. Your own rate with the company may be improved with discounts, which include a claims-free discount, home buyer discount and a green home discount for anyone with a LEED-certified home. You may be able to customize your policy with a long list of endorsements, including water backup, jewelry and valuable items coverage and identity fraud coverage. Travelers came in below average in both the J.D. Power 2022 Home Insurance Study and the 2023 Property Claims Satisfaction Study; you may want to speak with existing policyholders about their experience if customer service is a priority for you. 

Who Travelers may be good for: Travelers' low average rates may make it a good option for homeowners on a tight budget. It might also be a good choice for shoppers looking to customize their insurance policy with unique endorsements.

Pros

• Extensive endorsement list 
• Unique green home endorsement and discount

Cons

• Below-average ranking in J.D. Power's 2022 Home Insurance Study
• Below-average ranking in J.D. Power's 2022 Property Claims Satisfaction Study 
• Compare rates by city

Arkansas city	Travelers avg. annual premium for 250K dwelling
Conway	$1,810
Fort Smith	$1,798
Jonesboro	$1,466
Little Rock	$1,684
North Little Rock	$1,687

State Farm

Best for local agents

Rating: 3.2 stars out of 5

3.2 Bankrate Score

JD Power: 829/1,000 AM Best: A++

Average annual premium

^$ 2,285 for $250k dwelling coverage

State Farm Review Get a personalized quote

Average annual premium

^$ 2,285 for $250k dwelling coverage

State Farm Review Get a personalized quote

• Overview
• Pros and cons
• Average annual premium by city

Why State Farm made our list: State Farm may be a good option for those who want a more personal insurance experience. The company has a large number of local agents who may be able to assist with purchasing home insurance face-to-face. Working with a local agent may help ensure you're taking advantage of all potential discounts, like bundling and new roof savings. For shoppers who prefer a virtual experience, State Farm does offer a robust digital app and website, but its average rates are higher than average in Arkansas, which may not suit homeowners on a strict budget. 

Who State Farm may be good for: Policyholders who value customer service may appreciate State Farm's local agent availability and robust digital tools.

Pros

• Many local agents available for in-person service
• Above-average J.D. Power score for customer satisfaction

Cons

• Average rates are not as low as some competitors
• Discounts and endorsements may not be as plentiful as some competitors

Arkansas city	State Farm avg. annual premium for 250K dwelling
Conway	$2,167
Fort Smith	$2,083
Jonesboro	$2,365
Little Rock	$2,142
North Little Rock	$2,136

Encompass

Best for convenient coverage packages

Rating: 3.2 stars out of 5

3.2 Bankrate Score

JD Power: Not rated AM Best: A+

Average annual premium

^$ 1,781 for $250k dwelling coverage

Encompass Review Get a personalized quote

Average annual premium

^$ 1,781 for $250k dwelling coverage

Encompass Review Get a personalized quote

• Overview
• Pros and cons
• Average annual premium by city

Why Encompass made our list: Encompass Insurance is a subsidiary of Allstate with some unique features that may make it attractive to Arkansas homeowners. Encompass policies come in three levels: Special, Deluxe and Elite. At the higher levels, your policy includes 200 percent extended dwelling coverage. Encompass is a more regional carrier, but it offers a fairly comprehensive list of discounts with potential savings for protective devices, new homebuyers, renovations and more. However, Encompass does not offer online quoting or claims filing, so it may not be a good option for shoppers who value digital tools.

Who Encompass may be good for: If simplified, pre-packaged home insurance options are appealing to you, and you prefer to handle your insurance needs in person or over the phone, Encompass may be a great choice for your home insurance.

Pros

• Policy packages offer simplified coverage choices for shoppers
• Discount list is robust for a smaller carrier

Cons

• Online quoting and claims filing are not available 
• Parent company, Allstate, is rated below average for customer satisfaction by J.D. Power

Arkansas city	Encompass avg. annual premium for 250K dwelling
Conway	$1,563
Fort Smith	$1,883
Jonesboro	$1,739
Little Rock	$1,780
North Little Rock	$1,768

Auto-Owners

Best for unique endorsement options

Rating: 3.2 stars out of 5

3.2 Bankrate Score

JD Power: 825/1,000 AM Best: A++

Average annual premium

^$ 2,376 for $250k dwelling coverage

Auto-Owners Review Get a personalized quote

Average annual premium

^$ 2,376 for $250k dwelling coverage

Auto-Owners Review Get a personalized quote

• Overview
• Pros and cons
• Average annual premium by city

Why Auto-Owners made our list: Auto-Owners is a regional carrier with coverage available in 26 states. Although Auto-Owners does not have the same robust digital tools as some competitors, it does have a long list of endorsements for potential policy customization. Add-ons include cyber protection, identity theft coverage and guaranteed home replacement. For shoppers who prefer simplicity, Auto-Owners offers the Homeowners Plus bundle, which is a package of various endorsements, including coverage for damage caused by household appliances. Auto-Owners' rates are not as competitive as some other carriers in Arkansas, but policyholders may be able to lower their rates with discounts for advanced quoting, backup generators and being mortgage-free. 

Who Auto-Owners may be good for: Policyholders who are willing to pay a bit more for extensive endorsement options might pick Auto-Owners as their company of choice.

Pros

• Extensive list of endorsements
• Relatively unique list of discounts for potential savings

Cons

• Digital tools not as extensive as other companies
• Average Arkansas premium may not be as competitive as other carriers

Arkansas city	Auto-Owners avg. annual premium for 250K dwelling
Conway	$2,283
Fort Smith	$2,449
Jonesboro	$2,258
Little Rock	$2,239
North Little Rock	$2,234

• Arkansas home insurance rates methodology

  Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
  • Coverage F, Medical Payments: $1,000

  The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

  These are sample rates and should be used for comparative purposes only. Your quotes will differ.

• Bankrate score methodology

  Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

  Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

• What is the best homeowners insurance company in Arkansas?

  The best homeowners insurance company will likely vary based on your needs and preferences. To find the best company for you, most insurance professionals recommend narrowing down what you want in a company and requesting quotes from carriers that meet your preferences. This way you may be able to see which company offers you the coverage you need at the best price.

• What is the cheapest homeowners insurance company in Arkansas?

  There is no single insurance company that will always have the lowest prices at all times for all homeowners. Every company has its own method of determining rates, using factors such as your location, credit rating and the age and condition of your home to determine your rate. It can be helpful to gather several quotes from insurers to see who offers you the most affordable coverage.

• Why is Arkansas home insurance so expensive?

  Insurers are in the business of risk, and if your home is in a region that sees a higher level of risk, you will likely pay more for coverage. Arkansas is prone to a number of types of natural disasters, including tornadoes and blizzards, which may be partially responsible for the high average rates in the state. The rate of damaging weather patterns is increasing in the state, so it's possible that rates may rise in the coming years.

• Is home insurance required in Arkansas?

  Unlike car insurance, homeowners insurance is not mandated by law in Arkansas, or in any state. However, if you have a mortgage on your home, your lender may require it. Even if you don't carry a mortgage, most insurance experts recommend having a policy in place to protect your financial investment in your home in the event of a covered incident.