Best homeowners insurance in Arkansas of 2022

Davel5957/Getty Images

Homeowners insurance is typically required by mortgage companies and recommended by experts because of the invaluable financial protection it provides. Residents of Arkansas are not strangers to natural disasters. Because of its close proximity to the Gulf of Mexico and what has been historically known as “Tornado Alley,” Arkansas experiences hurricanes and around 33 tornadoes a year, which can result in costly damages and claims.

For this reason, the average cost of homeowners insurance in Arkansas is above average compared to the rest of the U.S. Homeowners insurance premiums in Arkansas average $2,142 per year for $250,000 in dwelling coverage. While this may be on the high side, you can find the most competitive rate for your situation by comparing quotes from some of the best homeowners insurance companies in Arkansas.

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 providers in your area. The benefit of comparing quotes 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 own 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
Allstate $2,092 882/1,000
Auto-Owners $2,151 900/1,000
Farmers $4,076 884/1,000
State Farm $2,236 880/1,000
USAA* $1,519 905/1,000

*USAA is not officially ranked by J.D. Power due to eligibility restrictions.

Allstate

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

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

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

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

USAA

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. This is above the national average of $1,312 per year. 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

Each state presents different risks to homeowners. When looking for the best homeowners insurance, it’s important to take local geographical considerations into account. Here are a few common causes of loss in Arkansas and some additional coverages you may want to consider.

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 may be required by your lender as it pays for damage caused by natural disasters. It includes dwelling coverage, which protects aspects of your home’s structure like the roof or the walls if they are impacted by covered natural disasters like snow or heavy rain and wind. 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 a value of over your policy limits for personal property, 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.

You can also find other coverage options for specific needs, such as optional coverage for structures that are not attached to your home like farm buildings, fences or sheds. Other coverage options may include ordinance and law coverage, which accounts for additional costs incurred to bring your structure up to local building codes in the course of repairs.

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 value of your home, your ZIP code, your deductible and what type of discounts you can get.

How do I get homeowners insurance in Arkansas?

The first step to getting Arkansas home insurance is to know how much your home is worth. However, you do not have to calculate this on your own, as most home insurers have systems in place that determine your home’s value in the underwriting process. A home appraisal can also help give you a good idea of the approximate value. From there, you can obtain an online quote from one or more insurance providers. You can also use the Arkansas Insurance Department as a reference guide for any questions you have that are particular to the state.

What do I need to obtain a quote for homeowners insurance?

The information that each insurance provider needs to give you an accurate quote varies. Most companies require some personal information like your exact address, date of birth, Social Security number, marital status and current insurance information (if you have an active policy). You will also likely need to provide your contact information, information about your job and details about other residents who live in your home.

Methodology

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.