Best home insurance companies in Arkansas
If you are a resident looking for the best Arkansas homeowners insurance companies, you will likely find it helpful to compare options from available national and regional providers in your area. The benefit of conducting research is that you are more likely to find the best home insurance rates for your coverage needs. By utilizing 2021 J.D. Power U.S. Property Claims Satisfaction Study scores and Bankrate’s methodology, including analysis of 2021 average rates obtained from Quadrant Information Services, Bankrate’s insurance editorial team selected five companies to include in this review.
|Home insurance company||Average annual premium for $250k dwelling coverage||J.D. Power score|
*USAA is not officially ranked by J.D. Power due to eligibility restrictions.
Allstate homeowners insurance may be a perfect option for someone looking for affordable coverage because this company offers multiple discounts. Customers who bundle different policy types could get up to a 25% discount, as Allstate also offers auto, renters, condo, motorcycle, business, life, roadside and identity insurance. Allstate’s J.D. Power property claims satisfaction score does not rank as highly as some of the others on this list, at 882 out of 1,000 possible points. However, its score did not decrease at all from the 2020 J.D. Power Property Claims Satisfaction Study.
Learn more: Allstate Insurance review
Auto-Owners is one of the oldest insurance providers in the state. It has been around for over 100 years and has almost three million policyholders, but is available in only 26 states. Auto-Owners offers more than just home insurance. It offers car and life insurance as well, making it easy for policyholders to bundle and save.
Learn more: Auto-Owners Insurance review
Farmers specializes in large policy limits. If you have a large home that is increasing in value, this could be the best option for you, although it’s worth taking note that Farmers’ homeowners policies are the most expensive, on average, compared to other providers on this list. This could be offset by a multiple policy discount; Farmers also provides auto, life, business, recreational, motorcycle, umbrella and financial insurance. Farmers has local branches throughout Arkansas with locally-knowledgeable agents ready to help.
Learn more: Farmers Insurance review
State Farm may be an ideal option for those who want a more personal insurance experience. The company has a large number of local agents that can help serve as a first point of contact for any insurance needs or claims questions. However, compared to other carriers on this list, State Farm’s homeowners insurance policies and coverage options are fairly standard and its rates average the second most expensive, at $2,236 per year for $250,000 in dwelling coverage.
Learn more: State Farm Insurance review
For active or retired armed forces and their families living in Arkansas, USAA may be a great homeowners insurance provider to consider. With policies designed to take into account the demands of military life, homeowners can rest easy knowing their home is financially protected from covered losses. In addition to other insurance products, banking capabilities and investment guidance, USAA offers policyholders a unique portfolio of financial services. Although it consistently receives high scores in the J.D. Power home and auto studies, USAA is technically rank-ineligible because of its limited availability.
Learn more: USAA Insurance review
How much is homeowners insurance in Arkansas?
The average cost of homeowners insurance in Arkansas is $2,142 per year for $250,000 in dwelling coverage, 63% higher than the national average of $1,312. Arkansas’ higher average premium may be partly due to the frequency of natural disasters that lead to insurance claims. Compared to states like Delaware and New Hampshire which typically have fewer national disasters, Arkansas’ average rates are more expensive. The average annual rate for $250,000 of dwelling coverage in Delaware is $680, and is $724 in New Hampshire.
Home insurance in Arkansas
Because each state has different risk factors, Arkansas homeowners should consider the hazards that may impact their property when shopping for insurance coverage. Below are the common causes of loss in Arkansas and some additional coverage options you may want to consider if you live in the state.
Arkansas common causes of loss
Home insurance claims can occur for many reasons, and it can be helpful to speak with a licensed, local agent who is familiar with the most common risks in your immediate area. They can help you choose the right coverage options to protect yourself financially and provide valuable guidance in the event of a covered loss.
The following are common causes for homeowners claims in Arkansas:
- Earthquakes: Arkansas is susceptible to earthquakes due to its proximity to the New Madrid seismic zone. Earthquakes are not typically covered by a standard homeowners insurance policy, so check with your insurance agent if you are worried about this type of risk.
- Hail damage: Commonly associated with thunderstorms and hurricane activity, hail damage can often be addressed by roof insurance.
- Wind damage: Thunderstorms and proximity to hurricanes often results in damaging high winds in Arkansas.
- Theft or burglary: For property crime, Arkansas is statistically above-average in crime rates per 1,000 residents.
Home insurance coverage options in Arkansas
Finding the right Arkansas home insurance coverage can be made easier by understanding what a policy may or may not include. Here are the most common types of coverage that insurers may recommend based on Arkansas state risks:
- Hazard insurance: This coverage is typically included in a standard policy and is part of your dwelling coverage. It protects aspects of your home’s structure like the roof or the walls if they are impacted by a covered natural disaster such as a severe thunderstorm, hailstorm, windstorm, blizzard or fire. Hazard insurance also provides financial protection for your personal possessions damaged by a covered peril. However, not all hazards are covered automatically — flood and earthquake coverage must be purchased separately.
- Flood insurance: Homeowners may not realize flood damage is not a covered peril, leaving many to have to foot the bill for this type of loss out of their own financial resources if they don’t have a separate flood policy in place. Buying flood insurance is a good way to reduce the risk of financial loss due flood damage.
- Scheduled personal property: If you own items with an individual value of over $500, such as fine jewelry or electronics, you may not receive the item’s full value after a covered peril. Scheduled personal property ensures the higher-value items’ replacement cost is accounted for in your policy and may protect against additional perils.
Frequently asked questions
What is the cheapest homeowners insurance in Arkansas?
The cheapest homeowners insurance in Arkansas depends on a number of factors unique to you, including the age and replacement value of your home, where you live, proximity to a local fire station and fire hydrants, your deductible and what type of discounts you can get.
What are other coverage types typically included in a standard home insurance policy?
Most standard homeowners insurance policies typically include loss of use, which covers temporary living expenses up to your policy’s limits if you are displaced from your home due to a covered claim. Standard policies also include other structures coverage, which helps pay to repair or replace detached structures on your property, such as fences, sheds, gazebos, in-ground swimming pools and detached garages.
What do I need to obtain a quote for homeowners insurance?
Obtaining a homeowners insurance quote is a simple process and fairly consistent amongst property insurers. It requires some basic information such as the name of the applicant(s) and date of birth, location address, coverage start date, number of people residing in your household, mortgage lender information, insurance history, email address and phone number. You will also need details about your home, including square footage, construction materials and safety features. You can obtain quotes directly from an insurer online, by phone or in-person through a local agent.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- 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.