Best homeowners insurance in Arkansas for 2022

We looked at policy cost, coverage quality, and unique policy offerings for Arkansas residents to find the best homeowners insurance companies in Arkansas.

Jessica Olivo

By

Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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When it comes to severe weather and natural disasters, Arkansas isn’t the most dangerous state in the country. But it's also susceptible to the elements in all four seasons, including severe tornadoes and wildfires once spring and summer roll around, making homeowners insurance both necessary and costly. 

The average cost of homeowners insurance in Arkansas is $3,391 per year or $283 a month. This is around 78% higher than the national average of $1,899. Homeowners should not be deterred, however. There are many ways to save on home insurance to get the policy you need at an affordable price.

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But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Arkansas.  

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UPDATE: Home insurance premiums up 18.5% in Arkansas

Home insurance premiums in Arkansas have increased at more than double the rate of inflation (8.6%) from May 2021 to May 2022, according to our latest analysis of internal policyholder data. 

The state’s 18.5% increase in premiums is likely due to a mix of rising inflation, labor shortages, severe natural disasters, and the Arkansas Insurance Department approving six companies for rate increases higher than 10% since the beginning of the year. 

You can find all of the details in our Policygenius Home Insurance Pricing Report.

Best homeowners insurance companies in Arkansas

Of the companies we looked at, Farmers has the lowest home insurance rate in Arkansas, with an average of $2,293 per year — almost $1,100 less than the state average. 

When it comes to customer and claims satisfaction, State Farm takes the cake thanks to its score of 835 out of 1,000 with J.D. Power. The best home insurance companies balance great coverage, exceptional customer service, and affordable rates. 

Policygenius analyzed thousands of quotes from the 5 largest Arkansas insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Arkansas residents to find the best homeowners insurance in Arkansas.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,890

835

Arkansas Farm Bureau Insurance

$2,701

--

Allstate

$2,808

829

Shelter Insurance

$2,515

--

Farmers

$2,293

813

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

As previously mentioned, State Farm is one of the best home insurance providers in Arkansas for customer satisfaction. This is in large part to the many convenient and easy ways State Farms allows its customers to get in touch with agents and access policy information. Additionally, customers can file a claim online, through its mobile app, over the phone, or in person. The State Farm mobile app also allows you to view your ID cards and upload photos directly from your phone.

How to get a quote

Online through State Farm

Arkansas Farm Bureau Insurance

Arkansas Farm Bureau Insurance logo

Arkansas Farm Bureau Insurance offers a strong mix of standard and specialty coverages, affordable rates, and personalized customer service. Our fave perk? Its discounts for retirees over 55 and full-time farmers.

Pros

  • Coverage add-ons include replacement cost, sewage backup, equipment breakdown, and optional perils coverage

  • Offers increased personal injury and liability coverage limits

  • Can help you purchase flood insurance policy through the NFIP

  • Save with discounts for newer homes, bundling, security systems, and being a full-time farmer or retiree over 55 years old

  • Great customer service ratings

  • Low rate of customer complaints

Cons

  • Farm Bureau membership required for coverage

  • Limited information about coverage options and discounts available online

Why Arkansas Farm Bureau tops our best list

Flooding can be a common occurrence in Arkansas, especially along the Arkansas River. While its flood insurance is through the National Flood Insurance Program, Arkansas Farm Bureau can help you purchase a policy. 

How to get a quote

Online through Arkansas Farm Bureau

Allstate

Allstate logo

Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.

Pros

  • Several coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection

  • 8+ discounts, including autopay, bundling, zero claims, and new homebuyer

  • Get up to 25% off your premiums when you bundle home and auto insurance

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

Allstate’s long list of discounts and savings is a big perk for homeowners. Along with discounts for paying your premium on time and not having to file a claim, Allstate also offers 25% off your home and auto insurance when you bundle policies. In Arkansas, that could add up to over $700 in savings on your homeowners insurance. 

How to get a quote

Online through Policygenius or Allstate

Shelter Insurance

Shelter Insurance logo

As a regional home insurance provider, Shelter is ideal if you're looking for a basic, budget-friendly homeowners insurance policy without all of the bells and whistles.

Pros

  • Offers less-common coverage add-ons, like docks and piers coverage, personal injury protection, and protection for at-home businesses

  • Earthquake coverage available — a rarity among insurers

  • Solid customer service ratings with third-party review sites

  • File claims online

Cons

  • Coverage options aren't as robust as other insurers

  • Discounts are rather limited

  • Lack of reputation within the industry

Why Shelter tops our best list

Shelter offers a wide variety of coverages within its base policy, including reimbursement of fire department charges, protection against credit card fraud, and coverage for your landscaping like trees and shrubbery. It even offers optional coverage for earthquakes, docks, and farms. 

How to get a quote

Online through Shelter 

Farmers

Farmers logo

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

  • Several discounts and unique ways to save, including claim forgiveness and declining deductibles

  • 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

  • Offers extended and guaranteed replacement cost coverage options

  • File claims online, via text, on its mobile app, or by calling its claims center

Cons

  • Rates are typically more expensive

  • Below-average customer satisfaction ratings

  • No repair network to help you find a certified contractor or repair professional after filing a claim

Why Farmers tops our best list

Since not every home insurance policy is right for every homeowner, Farmers offers three flexible levels of coverage to choose from. Its standard policy is a more budget-friendly option for homeowners that don’t require more than basic coverage, while its other options provide additional features and higher limits.  

How to get a quote

Online through Farmers

Cheapest homeowners insurance companies by city in Arkansas

Looking at average home insurance costs for the 15 most popular insurers in Arkansas, we found that the cheapest homeowners insurance companies in the state are State Auto, Farmers, and Allstate. State Auto has the lowest rates in Arkansas’s largest cities including an average yearly rate of $1,441 in Little Rock, $1,205 in Fayetteville, and  $1,378 in Bentonville. 

Your home’s age, size, and value are all factored into the cost of your homeowners insurance policy. Older homes may be more likely to need repairs and can often cost more to fix. Larger and more expensive homes are also likely to cost more to rebuild. 

Where you live also plays a large factor in determining your home insurance rate. Areas with high crime or prone to wildfires or tornadoes will often see higher home insurance rates. No matter where you live or what type of house you own, it’s still possible to find the policy you need at an affordable rate.

City

Company

Average yearly cost

Adona

State Auto

$1,393

Alexander

State Auto

$1,427

Alicia

Allstate

$1,579

Alix

State Auto

$1,353

Alleene

State Auto

$1,334

Alma

State Auto

$1,384

Almyra

State Auto

$1,377

Alpena

State Auto

$1,304

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Shopping for homeowners insurance in Arkansas

When shopping for homeowners insurance, it’s important to compare quotes from several companies to ensure you’re getting the right coverage at the best price. 

To ensure an accurate quote comparison, you should make sure the coverages you’re being quoted for reflect your actual home insurance needs. That means having enough dwelling coverage to cover the cost of a full home rebuild; having enough liability coverage to cover the value of your combined assets; and choosing a deductible that works for your budget. 

In this section, we break down the average annual home insurance rates in Arkansas for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Arkansas.

Arkansas home insurance costs by coverage amounts

Dwelling coverage is the part of your home insurance that pays to repair or rebuild your home after a covered loss. Your dwelling limit should be based on an estimate of your home’s total replacement cost, or the cost to rebuild the home from the ground up — not its market value or purchase price. 

More dwelling coverage means higher home insurance rates, as shown in the table below. The cost of a policy with $200,000 in dwelling coverage is $2,549, while the average cost of a policy with $300,000 is $3,391 — a difference of $842.

Dwelling coverage amount

Average yearly cost

$100,000

$1,700

$200,000

$2,549

$300,000

$3,391

$400,000

$4,269

$500,000

$5,321

Liability coverage pays for expenses if you are found legally responsible for an injury or property damage. To be certain your livelihood is fully protected, your liability coverage limit should be based on the total value of your assets, such as your house, your cars and other vehicles, and your liquid assets.

Liability coverage amount

Average yearly cost

$100,000

$3,455

$200,000

$2,954

$300,000

$3,391

$400,000

$2,581

$500,000

$3,567

Arkansas home insurance costs by deductible amount

Your homeowners insurance deductible is the amount you have to pay towards your insurer before they’ll reimburse you for a claim. Since you have to pay this amount for every claim you file, be sure not to choose a deductible that’ll be too high to pay out of pocket in the event your house is damaged or burglarized.

As seen in the table below, Arkansas residents can save around $113 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$3,638

$1,000

$3,391

$2,000

$3,525

Home insurance discounts in Arkansas

Many insurance companies offerdiscounts as an incentive to make your home more secure. By installing a deadbolt lock, security alarm, or a smoke detector, you can save money on your home insurance premium. 

These safety devices not only protect your home from fires, theft, and other perils, they also reduce the likelihood that you will need to file a claim, which benefits your insurance company, too. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Arkansas with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$3,391

Smoke alarm

$3,371

Burglar alarm

$3,341

Home insurance companies in Arkansas for dog owners

Owners of certain dog breeds may see higher home insurance rates. Insurance companies often charge higher premiums to customers who own pit bulls, Rottweilers, or other dog breeds it views as a liability risk. 

With an average rate of $2,293 per year, Farmers has the cheapest home insurance rates in Arkansas  for a home with a dangerous dog breed, while State Farm’s average yearly premium of $2,890 is the highest. 

Company

Average yearly cost

Farmers

$2,293

Shelter Insurance

$2,515

Arkansas Farm Bureau Insurance

$2,701

Allstate

$2,808

State Farm

$2,890

Home insurance companies in Arkansas for poor credit

Insurance companies look at your credit score as a way to determine if you are a high risk to insure. Customers with poor credit are more likely to file insurance claims for small damages or losses, so insurers will often charge higher rates to customers with bad credit.  

With an average rate of $3,257 per year, Shelter has the cheapest home insurance rates in Arkansas for a homeowner with poor credit, while State Farm’s average yearly premium of $4,967 is the highest.

Company

Average yearly cost

Shelter Insurance

$3,257

Arkansas Farm Bureau Insurance

$3,453

Allstate

$4,372

Farmers

$4,388

State Farm

$4,967

Home insurance companies in Arkansas for pool owners

Having a pool in your yard could lead to higher home insurance rates as well, since there is more of a  risk of having to file a liability claim due to injuries. 

With an average rate of $2,293 per year, Farmers has the cheapest home insurance rates for Arkansas homes that have a swimming pool, while State Farm’s average yearly premium of $2,890 is the most expensive.

Company

Average yearly cost

Farmers

$2,293

Shelter Insurance

$2,515

Arkansas Farm Bureau Insurance

$2,701

Allstate

$2,808

State Farm

$2,890

How to buy homeowners insurance in Arkansas

If you live in Arkansas, your homeowners insurance should have enough dwelling coverage to pay to rebuild your home in case it’s destroyed in a fire or tornado; as well as any additional coverage options that keep your home well protected. 

Here are some steps to take when looking for your ideal policy:

  1. Reach out to a licensed Policygenius agent. A Policygenius agent can not only answer your homeowners insurance questions, but also help you determine your coverage limits, discuss your policy options, and compare rates — all at no cost to you.

  2. Consider purchasing flood insurance. Damage from a flood can be costly, but unfortunately it’s not covered under your homeowners insurance policy. Additional flood insurance can save you from paying for expensive repairs or rebuilds out of pocket.

  3. Figure out how much you can afford to pay for your deductible. If you are likely to file a claim — or even multiple claims — throughout the year, be careful not to choose too high of a deductible. 

  4. Compare quotes from a Policygenius agent. Shopping around and comparing quotes is the best way to find the right coverage at the lowest rates.

  5. Choose your policy, sign, and pay your first premium. After you’ve picked out a home insurance policy, a Policygenius agent can help prepare the paperwork so all you need to do is make your first payment. 

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Frequently asked questions

What is the average cost of homeowners insurance in Arkansas?

The average cost of homeowners insurance in Arkansas is $3,391 per year or $283 a month.

Do older homes cost more to insure?

Older homes tend to be more expensive to insure because they are more likely to need expensive repairs. Older homes may also need to be brought up to modern standards during repairs, or may require materials that are outdated, which also drive up the cost of insurance.

Do I really need homeowners insurance?

While homeowners insurance is not legally required in Arkansas, it’s a relatively small price to pay when compared to the potentially thousands of dollars you may need to spend if a tornado or wildfire damages your house. Homeowners insurance not only protects you from natural disasters, but also from theft and vandalism as well as expensive liability lawsuits. Most mortgage lenders will also require you to have homeowners insurance as a stipulation of your loan agreement.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Author

Freelance contributor

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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