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If you enjoy the outdoors, Arkansas may be the ideal home for your family or the perfect place to expand your real estate investment portfolio.

Also known as the Natural State, it's famous for its beautiful lakes, lush valleys, gorgeous rivers, and stunning mountainous peaks. Also, it's the only state that produces diamonds.

However, with these scenic wonders and impressive geographic features come the extreme weather and the natural events that have helped shape Arkansas.

While this state isn't prone to hurricanes or wildfires, other severe events are prominent, including tornadoes, high winds, floods, drought, and earthquakes.

Besides exploring Arkansas' natural beauty, you should find the best way to protect your investment, and a homeowners insurance policy is the most recommended option.

However, there are many homeowners insurance companies in this state. Which insurer offers the best policy? Can you find reasonable insurance premiums?

In this guide, you'll find key information and tips to choose homeowners insurance according to your needs and the most common natural events and hazards in Arkansas. Read on!

Understanding Homeowners Insurance in Arkansas

Whether you're a homeowner, investor, or property manager in Arkansas, a comprehensive homeowners insurance policy can help protect your home or rental unit.

A homeowners insurance policy won't prevent damage to your property or belongings. However, it acts as a financial safety net, paying for losses if something unexpected happens.

Average Home Insurance Costs in Arkansas

When it comes to determining the average cost of homeowners insurance in Arkansas, it's essential to consider different factors.

The state's natural or geographic features, the likelihood of severe weather, and how close the property is to a fire department can influence the cost of the policy.

In the last 60 years, the US government has declared almost 2,000 major disasters in 50 states and the District of Columbia. However, the latest figures show that a third of those events have occurred in just 10 states. Arkansas is one of them.

Although it isn't a coastal state, Arkansas has had 54 major disasters since 1953. The Natural State is often hit by tornadoes, flooding, heavy rain, snow, ice, and even tropical storm systems.

As a result, Arkansas has higher homeowners insurance premiums than other states, averaging $2,123 per year for $250,000 in dwelling coverage.

The average cost of homeowners insurance in Arkansas is almost 50% higher than the national average ($1,428).

However, the high risk of tornado damage may influence these rates. Neighboring states also have high homeowners insurance premiums. In Oklahoma, the average cost is $3,659 for $250,000 in dwelling coverage. Although slightly lower, Mississippi's average rate is also high at $1,900.

Many homeowners consider bundling with other types of insurance to get discounts and save on monthly costs. While it often refers to home and auto insurance, you may be eligible for multiple policy discounts if you purchase coverage from the same company.

If you're looking for the best option in the Arkansas home insurance market, don't hesitate to contact your insurance agent and ask for all the information you need to clarify your doubts.

Homeowners Insurance vs. Landlord Insurance

Both real estate investors and property managers should understand the difference between homeowners insurance and landlord insurance. We've also included valuable information on these terms.

Essentially, homeowners insurance focuses on the structure of a property and homeowners' belongings. While it can provide financial relief, this coverage might not be comprehensive enough for rental properties when the unexpected occurs.

Contrastingly, landlord insurance is tailored to the needs of people who own rental units. Besides providing structural protection, these policies cover the potential loss of rental income and liability in the event of an accident involving tenants.

Landlords need the right type of insurance to make sure they're well-protected against such hazards. In addition, it's important to review the insurance policies in detail to know their specific terms and conditions. A misunderstanding could result in denied claims and policy cancellation.

Landlords and property managers should be honest with their insurance companies and get guidance from experts in choosing the right coverage. Some might need an endorsement or separate policy based on their unique situation, for example.

However, a landlord can use homeowners insurance in some scenarios. These are the most common:

Vacant Property

Is your rental property vacant because you haven't found the right tenant? If it hasn't been rented out, you may need to maintain your homeowner's insurance. However, you should inform your insurer about the situation since a prolonged vacancy could affect your coverage.

Temporary Absence

Homeowners who won't live in their properties for short periods but plan to return later may also choose homeowners insurance.

However, you should report this to your insurance company and communicate your intentions to rent out the property to avoid issues that may affect your coverage.

Also, it's important to know that this option is recommended only when you plan to be absent for a short period. If you want to rent out a property long-term, you should switch to landlord insurance.

Transition Period

Do you plan to rent out your property, but you're living there until you find the ideal tenant? You may consider homeowners insurance during this transition period. However, you should switch to another policy once your house becomes a rental property.

Home Sharing

What if you plan to rent out only part of your property? What type of insurance coverage should you choose?

Some homeowners insurance providers offer home-sharing insurance, but it may vary from company to company.

If you plan to share your primary residence with a tenant or roommate, contact your insurance provider and request information about the coverage available for these situations. Also, you should consider liability coverage for incidents involving both guests and tenants.

Have you already purchased liability coverage? Call your insurance provider and ask if your current policy covers potential tenant-related risks.

When you share your property with a tenant, you should also consider potential rental income losses. Unlike landlord insurance, homeowners insurance doesn't offer coverage in these cases.

How to Choose an Arkansas Homeowners Insurance Company

Do you think a homeowners insurance policy is ideal for your property? Before choosing a policy, check these tips!

Unique Policy Needs for Arkansas Homeowners Insurance

Like any other state, Arkansas has unique hazards and common natural events. Therefore, homeowners should consider these aspects to choose a policy and purchase additional coverage if necessary.

As mentioned, the most common natural events in Arkansas include tornadoes, storms, high winds, floods, earthquakes, and drought.

Standard homeowners insurance policies include the following:

  • Personal property coverage
  • Dwelling coverage
  • Personal liability and medical payment to others
  • Wind and hail coverage
  • Hurricane coverage

*Tornado damage is often covered by standard policies.

Additionally, homeowners, property managers, and landlords who want a comprehensive and more specialized insurance policy may also consider the following coverages:

Flood Insurance

Most homeowners insurance policies don't cover flood damage. However, flash floods are quite common in Arkansas, even outside of risk areas. Therefore, you should consider this coverage to protect your property, belongings, and investment if this event occurs.

Many companies have partnered with the National Flood Insurance Program (NFIP) under the Federal Emergency Management Agency (FEMA) to provide flood insurance.

Personal Property Replacement Cost

Homeowners, landlords, and property managers may also consider this type of insurance to cover the costs of replacing items or belongings damaged or lost in a fire or theft.

Earthquake Insurance

Standard homeowners insurance policies don't cover earthquake damage. However, it may be essential in Arkansas.

Fortunately, many insurers offer earthquake coverage as standalone policies, covering damage caused by land movement.

Other Factors to Consider When Assessing Arkansas Home Insurance Companies

You have already considered the issues and potential challenges that Arkansas homeowners, landlords, and property managers may face. Now, it's time to choose the right insurance company. Check the tips below!

  • Consider your needs and other aspects that may determine if you should purchase additional coverage, such as your property's cost or location
  • Research Arkansas homeowners insurance companies to determine if they're reputable or get positive feedback from other policyholders
  • Compare different coverage options and choose the ones that cover the risks you're concerned about
  • Request quotes from different insurers and choose an option that fits your budget but provides enough coverage
  • Seek information about the company's financial situation from independent rating agencies, such as AM Best, to determine if it can meet claims obligations
  • Evaluate customer service by checking the company's reputation online
  • Request information about discounts and choose companies that can help you save on your premium without sacrificing comprehensive coverage
  • Reach out to your family and friends to ask for recommendations on insurance providers in Arkansas
  • Review the policy terms and conditions several times before making the final decision and purchasing a policy
  • Reach out to your chosen Arkansas home insurance company if you still have questions about its coverage options

If you consider these factors and take enough time to review each option, you'll choose the best policy according to your needs and enjoy the peace of mind you deserve.

Best Home Insurance Companies in Arkansas

Now that you know the recommendations for choosing the best homeowners insurance company in Arkansas, let's explore the different options you can find in this state:

1) Amica

Amica

Considered the best Arkansas home insurance company, Amica has served US homeowners for over a century. Additionally, this insurer has earned an A+ financial rating from AM Best and offers multiple insurance products.

Coverage and Features

This company offers two types of coverage: Standard Choice and Platinum Choice, covering both basic and additional features for a comprehensive policy.

Here are some coverages you can buy if you choose Amica:

  • Dwelling and other structures coverage
  • Personal belongings coverage
  • Temporary housing after a loss
  • Water backup coverage
  • Protection against damage to your computer equipment
  • Extended coverage for jewelry and other valuable items
  • Personal liability coverage
  • Loss of use
  • Dwelling replacement cost
  • Medical payment coverage
  • Credit card coverage
  • Loss assessment plan
  • Business property coverage

Additionally, Amica's policies are available in dividend and non-dividend versions to help policyholders save.

Discounts

This insurance company is also committed to helping policyholders save. These are some of the discounts Amica offers:

  • e-discount
  • Autopay
  • Claim-free
  • Loyalty
  • Multi-line
  • Automatic detection devices
  • Alarm system
  • New/remodeled home credit

Amica's discounts may vary from state to state. If you need more information on the options available in Arkansas, contact a company representative.

2) USAA

USAA

With an A++ financial strength rating by AM Best and comprehensive policies, USAA is considered one of the best Arkansas homeowners insurance companies. Plus, it offers great options for active or retired military members and their families if they live in this state.

Coverage and Features

USAA offers home insurance policies with basic features, including dwelling coverage and personal property liability. In addition, it provides additional coverages as part of its standard options. These are:

  • Loss of use
  • Identity theft
  • Replacement cost
  • Other structures coverage (to repair or replace structures that aren't directly attached to the dwelling)
  • Military uniforms

Also, while it doesn't offer many options, policyholders can purchase these additional coverages:

  • Earthquake coverage
  • Home-sharing coverage

Discounts

USAA also offers discounts to help you save on your premium. These are:

  • Bundle and save
  • Protective device credit
  • Claims-free discount

However, discounts may vary from state to state. Therefore, you should request this information from the insurance company.

3) State Farm

State Farm

If you're looking for a company with multiple insurance products and coverage options, State Farm may be the ideal choice. This insurer has earned an A++ financial strength rating from AM Best and offers flood insurance from the National Flood Insurance Program (NFIP).

Coverage and Features

State Farm has multiple standard options but also offers additional coverage for those who want to expand and customize their policies.

Here are some of the coverages State Farm offers:

  • Dwelling coverage
  • Personal property coverage
  • Additional living expenses (ALE)
  • Personal liability coverage
  • Medical payments
  • Coverage for valuable possessions
  • Water backup
  • Flood insurance from the NFIP
  • Ordinance or law coverage
  • Inflation guard
  • Cyber ÔÇőÔÇőEvent, Identity Restoration, and Fraud Loss Coverage (CEIDR)
  • Identity restoration coverage

Discounts

In addition, State Farm offers several discounts to help homeowners save on their premiums. These are:

  • Multi-policy
  • Roofing
  • Home security
  • Claims-free
  • Automatic sprinkler
  • Utility rating plan

4) Allstate

Allstate

Allstate, an insurance company founded in 1931, offers multiple insurance products with unique additional coverages for homeowners seeking comprehensive policies. Also, this insurer has interesting options for people who want to make their properties more eco-friendly.

Coverage and Features

This company has standard options but stands out among the competition for its original optional coverages. Overall, an Allstate policy may include the following:

  • Dwelling coverage
  • Liability protection
  • Personal property coverage
  • Guest medical protection
  • Flood insurance
  • Personal umbrella policy
  • HostAdvantage
  • Water backup
  • Identity theft restoration
  • Business property coverage
  • Scheduled personal property
  • Yard and garden coverage
  • Sports equipment
  • Electronic data recovery
  • Green improvement reimbursement
  • Musical instruments

Discounts

In addition, Allstate wants to help policyholders save on their premiums by offering the following discounts:

  • Multi-policy discount
  • Homebuyer discount
  • Responsible payment discount
  • Easy Pay Plan
  • Claim-free discount
  • Early signing discount
  • Protective device discount
  • Welcome and loyalty discount

5) Chubb

This global insurance company provides home insurance in 54 countries and territories, including the US. It's one of the nation's largest insurers and has earned an A++ financial rating from AM Best.

Coverage and Features

Chubb has standard policies with coverages that other companies offer as add-ons. That's a great advantage over the competition.

Here's a list of what Chubb's policies often include:

  • Dwelling coverage
  • Water backup
  • Personal property coverage
  • Dwelling extended replacement cost coverage
  • Cash settlements for people who want to rebuild their homes in another location after a total covered loss
  • Flood coverage
  • Earthquake coverage
  • Valuable article coverage

However, Chubb isn't the best option for homeowners who want to buy an insurance policy online since all potential policyholders must go through an agent.

Discounts

If you want to save on your premium, Chubb offers the following discounts:

  • Fire and security discounts
  • Multi-policy discounts
  • Claims-free discounts
  • New or renovated home discounts
  • Backup generator discounts

Other Notable Arkansas Home Insurance Companies

The insurers mentioned above are our top picks. However, other Arkansas homeowners insurance companies offer excellent coverage options, including the following:

  • Nationwide
  • Liberty Mutual
  • Progressive
  • Farmers Insurance

Remember to inquire about their policy terms, conditions, and costs before making a decision.

Conclusion

Living in Arkansas and enjoying the state's natural beauty feels like a dream. However, unforeseen events can bring many challenges for homeowners, landlords, and property managers.

That's why choosing the best homeowners insurance company is essential.

A comprehensive policy can give you the peace of mind you deserve by protecting your property and hard-earned money.

If you define your needs, assess your situation, and consider the state's unique characteristics, you'll be able to choose the right policy!

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

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