Home insurance costs in Arkansas 2021

Home insurance costs in Arkansas

If you live in Arkansas, known also as ‘’the natural State’’, you have mountains, rivers, woods, and lakes, with lots of activities to be practiced, on top of beautiful cities where you can find a very good education and several opportunities of business. Here the cost of living is also low, compared to many other States: all this makes it quite ideal to find a home and can be, provided that you have some knowledge around it. House is your most valuable asset, and you want to protect it. Due to its position, Arkansas has witnessed and faces yearly extreme weather phenomenons, so it is critical to have the right knowledge about how to properly insure your house from those and other common perils.

The most significant hazards in Arkansas are tornadoes, hurricanes, floods consequent to rainstorms, hail; snowstorms in the winter season. This environmental situation is due to the proximity to the Gulf of Mexico, from where heat currents periodically mix with cooler winds.

Wind is a peril commonly covered by home insurance, and you will find it explicitly on the paperwork of insurance policies. There are possibilities for wind damaging your home directly, such as by crashing your roof, or to cause harm indirectly by for instance making a tree fall over your house; however, a basic policy will provide coverage only from minor wind-related events, while specific insurance for major damages, such those caused from hurricanes and tornadoes, will be required.

The average cost of a homeowners insurance policy in Arkansas is $2,321, as of the last quarter of 2021, according to our analysis*: this amount can be justified partly by the number and severity of storms that are interesting the State every year. Other factors are involved in calculating the premium, above all the location of your house and its features. Also, keep in mind that every insurance company considers somewhat differently how a thing will impact the policy cost. In the table below, you can get an idea of how much you can spend if you reside in a certain city, but still consider even in the same city there are variables that may modify the premium to a remarkable degree.

City Country Home median value Square ft Premium
Little Rock
Pulaski
$155,000
1465
$2,310
Fort Smith
Sebastian
$125,000
1420
$2,250
Fayetteville
Washington.
$175,000
1755
$2,305
Springdale
Washington
$170,000
1680
2,345
Jonesboro
Craighead
$150,000
1500
$2,585
Rogers
Benton
$195,000
1850
$2,360
Conway
Faulkner
$145,000
1800
$2,610
North Little Rock.
Pulaski
$105,000
1450
$2,395
Bentonville
Benton
$200,000
1735
$2,240
Benton
Saline
$150,000
1500
$2,775
Pine Bluff
Jefferson
$100,000
1800
$2,535

All the premiums are intended for houses equipped with at least three beds and two bathrooms, insured on proper dwelling coverages for their worth, which is representative of the median home value for a given city; the size considered is average for that city. Premiums are averaged from quotes we got from major insurance companies like Allstate, Amica, Chubb, Farmers, Liberty Mutual, Progressive, Statefarm, Travelers, and USAA.

What coverages do you need in Arkansas?

 

Weather is a relevant thing in Arkansas: frequency and severity of tornadoes and floods make grow the filing of claims for damages through the State; as well as this contributes to higher than national average premiums, you may get discounts for taking precautions against wind and hail damage, such as fortifying your roof and windows.

Heavy rains are also frequent in Arkansas. According to public weather estimates, the average annual rainfall is almost 50 inches, which means it rains a lot, more than in most other States. That has some implications: risk of floods and roof damage, both greatly feared by insurers, who thus will charge a fat premium if they detected such risk involving your house.

Flooding is a common issue, for houses in the Arkansas and other rivers proximity, and as a consequence of rains and hurricanes; as for flood coverage, policies provided by local private insurance companies offer more flexibility when it comes to coverage limits and waiting periods, but homes at very high risk of flood damage may be denied of insurance. Flood insurance is a standalone policy, and while it is not mandatory, is recommended: its cost varies upon the size of your house and the level of risk area on which it’s placed.

Arkansas is located in the seismic zone of New Madrid, therefore earthquakes can be experienced here. Such a peril can’t be covered by a common H0-3 policy, but you should get earthquake insurance apart, provided the house is made of materials more prone to giving up to damage; you may also find it useful to see maps of risks, for instance the ones on the FEMA website.

Unlike many other states, however, Arkansas law does not require coverage for additional structures on your property that are not the primary residence. That means you may have to get separate add-on coverage for a detached garage, tool shed, art studio, etc.

How much is flood insurance in Arkansas?

 

Buying flood insurance from the National Flood Insurance Program will cost you around $875 per year in Arkansas: while it surely totals a fat premium, it pays for a likely and devastating risk for your home. A flood itself creates a lot of damage even if a few inches of water got inside the house; when you know that major floods can happen, you get the idea. In Arkansas, there are several high-risk areas (next to Mississippi and Little Missouri rivers) and it has been estimated that up to 25% of claims are made from low-risk areas.

Other factors intrinsic to your house must be taken into account:

  • Age of house: many houses in Arkansas are more than forty years, which means they may not meet the safety requirements for getting the most common H0-3 policy. You will obtain an H0-8, but the overall coverage will be probably limited, and the premium relatively high. If you bought an old house, upgrading some of its components, for instance, the roof, is a good move for re-assessment of risk profile, which leads insurers to lower the premium; otherwise refurbishing or retrofitting the house can do the trick.
  • Quality of roof: this is indeed seen as a relevant component of your home. For Arkansas homeowners, the best improvement is, by all means, making it waterproof: some houses, especially old ones, have roofs that probably can’t bear loads of water from heavy rains over time. Metal is the most resistant material in this case; poor materials mean a higher premium or even none at all.

Crime in Arkansas: the number of annual property crimes overweighs 85,000 according to publicly available official data, which is quite high, with Little Rock., Pine Bluff, and Jacksonville figuring among the least safe cities. Claims about crime in the neighborhood or your house, and at a larger scale in the county of residence, is a factor that increases how much you will pay on a policy. What you can do about is some measures as installing an intrusion detection system, reinforcing the ways of access to the inside of your home.

The credit score is another great factor determining the rate of your policy. The average score for Arkansas is 683 (source: experian.com) which is considered as ‘good’: if you have lower than 670 you can expect higher than average premiums, depending on how much you are under that score. That means: a good financial condition is evaluated as a low profile risk, which in turn equals a cheaper premium.

So, if you want to save on home insurance in Arkansas, you have to manage the above-mentioned issues. To resume, you may want to do these things: first of all shop around for comparison, choose a higher deductible, try to improve your credit score, bundle home insurance with auto insurance, then renew the policy with the same company (provided you were fine with it).

Now, check out the coverages you need to properly insure your home by using the estimator, which will give you also a prediction of your annual premium based on the parameters you set. Then, when you are ready, get quotes from the best insurance companies on the market.

*Methodology: we aggregated and averaged multiple quotes for every city of the State, assuming a 35 years old individual, married, with a good credit score. Our effort is to keep data always updated and the most accurate possible, so as to satisfy at best the consumer’s expectations.