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Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Homeowners insurance is expensive, but going without it can cost homeowners even more. Those hoping to protect their home at the lowest cost should begin their search with the best homeowners insurance in Arkansas. Here's a look at which companies offer the best rates for several common scenarios.
The average Arkansas home insurance premium costs $2,983 per year, which is well above the national average. But those who choose Liberty Mutual only pay about $1,505 per year on average.
These companies also offer cheap homeowners insurance in Arkansas:
Liberty Mutual also offers the best homeowners insurance in Arkansas for new home construction. Its average annual premium for these homes is just $1,065 -- well under the state average of $1,455.
These companies also offer great deals on Arkansas home insurance for new construction:
Older homes cost about $2,965 per year to insure in Arkansas. But those who go with Liberty Mutual only pay about $1,454 per year on average. This is based on a 50-year-old home with no claim history.
These companies also offer some of the best rates on Arkansas home insurance for older homes:
Homeowners who have filed a claim pay about $3,145 annually for Arkansas home insurance. But those who choose Liberty Mutual pay less than half that. It only charges homeowners with a single claim on their record about $1,462 annually.
These insurers are also among the best homeowners insurance companies in Arkansas for homeowners with a claims history:
Arkansas home insurance premiums are well above the national average in all categories. The table below shows how its average rates for the categories above stack up to the rest of the country.
But it's important to note that these are only averages. A homeowner's actual rate will vary depending on the cost and construction of their home, their address, their claims history, and more.
| Average Rate Category | Arkansas | National Average |
|---|---|---|
| Overall | $2,983 | $1,725 |
| New home construction | $1,455 | $943 |
| Older homes | $2,965 | $1,658 |
| When making a claim | $3,145 | $1,803 |
Here are a few things that homeowners should be aware of when shopping for Arkansas home insurance.
The typical Arkansas home only costs about $149,120, according to The Ascent's research on average home price by state. Meanwhile, the national average home price is $293,349. This could work in Arkansas homeowners' favor.
A lower home price isn't a guarantee of lower home insurance costs, but the two often go hand in hand. A smaller home is usually cheaper to rebuild than a larger one, so many homeowners are able to get by with less home insurance coverage. However, the flip side is also true. Homeowners with homes that cost a lot more than the state average can expect to pay more for Arkansas home insurance.
The five cities with the highest average Arkansas home insurance rates (listed in the table below) are all in the eastern half of Arkansas. And many of the cities with the cheapest average rates are in the western half of the state. But location, or even the size of a city, isn't always an accurate predictor of average home insurance rates.
Here's a look at some of the most common homeowners insurance claims in Arkansas.
Arkansas's position in Tornado Alley means that homeowners have to be prepared for strong winds and devastating tornadoes. These storms can damage personal property left outside, shatter windows, tear shingles off of roofs, or even bring down an entire building.
That's why it's important for homeowners to ensure they have adequate homeowners insurance to replace the full cost of their home in the event of an accident. Failure to do so could result in some costly bills.
Tornadoes and severe thunderstorms often bring hail. In 2021, several cities in Arkansas saw golf-ball sized hail or larger. This is also enough to break windows and damage roofs or personal property left outdoors.
Because these claims are so costly, many home insurers now require homeowners to pay a separate wind and hail deductible before they pay anything out for a hail claim. This deductible is often higher than a standard home insurance deductible.
Arkansas might be part of the South, but it's still susceptible to winter weather, including heavy snowfall and temperatures that can freeze pipes. Homeowners can take some steps to mitigate these issues, like wrapping pipes and shoveling roofs in winter. But it's also important for homeowners to ensure they have adequate insurance in case the worst happens.
Here's a look at how several common home insurance discounts affect the average Arkansas home insurance premium.
Homeowners with cars may want to look for a single company for their home and auto insurance. Bundling home and auto insurance is the single-biggest discount many insurers offer. And it can drop the average Arkansas home insurance premium down from $2,983 to $2,274 per year.
Homeowners who redo the roof on their home see the average cost of their home insurance premium drop to around $2,363 per year. This isn't surprising in a state prone to tornadoes and large hail events. A new roof can better protect a home against these damages than an older one.
Homeowners who replace their roof should notify their insurance company right away to see if they qualify for a discount. They may also want to explore a few other options to see if another company is willing to offer a better deal on a homeowners insurance policy.
Homeowners who can afford to pay their homeowners insurance premium in full every year should do so. This knocks over $200 off the average annual Arkansas home insurance premium, bringing it down to just $2,722 per year.
These five cities have the lowest average Arkansas home insurance premiums:
| City Name | Average Home Insurance Rate |
|---|---|
| Lowell | $2,618 |
| Lakeview | $2,627 |
| Drasco | $2,640 |
| Wilburn | $2,643 |
| Hot Springs Village | $2,644 |
Residents of these five cities pay considerably more than average for their Arkansas home insurance:
| City Name | Average Home Insurance Rate |
|---|---|
| Moscow | $3,579 |
| Waldenburg | $3,535 |
| Caldwell | $3,487 |
| Vanndale | $3,467 |
| Wabash | $3,427 |
Homeowners looking for coverage in Arkansas have a number of great options. And it's always a good idea to shop around with multiple insurance companies to get more than one home insurance quote before deciding on the right fit for you.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
