6 Best Homeowners Insurance Companies in Arkansas of 2023

Owning a home is a dream come true for many people in the state of Arkansas, whether they live in a big city like Little Rock or Fayetteville or a small town such as Magnolia or Prairie Grove.

Part of being a homeowner is understanding the risks to your home and taking steps to protect yourself and your family if something should damage or even destroy your house.

Homeowners insurance provides protection from heavy rain and other harsh weather that can occur in Arkansas.

Here at PropertyNest, we want the experience of buying homeowners insurance to be as easy and stress-free as possible, so we’ve done the research for you to choose the 6 best homeowners insurance companies in Arkansas.

The average annual cost of homeowners insurance in Arkansas is $1,530, which works out to $128 per month, but you may pay less if you take advantage of discounts.

Compare Homeowners Insurance Rates in AR

The Best Homeowners Insurance Companies in Arkansas

• State Farm: Best for Protection Against Inflation
• Amica: Best for Protecting Your Home Business
• Allstate: Best for Homes in Flood Areas
• Travelers: Best for Green Construction
• USAA: Best for Active Military Families and Veterans
• Shelter Insurance: Best for Affordable Coverage

State Farm: Best for Protection Against Inflation

State Farm started selling insurance 100 years ago, and today it’s one of the country's most recognized and trusted insurance companies.

State Farm has a lot to recommend it, but we chose them for our list because we believe they’re the best option for homeowners who want some protection against high inflation and how it might impact their ability to rebuild their home after a loss.

We’d be remiss if we didn’t mention State Farm’s stellar customer service. We also like that they have high policy limits available for people who own high-value properties in Arkansas.

The average cost of State Farm homeowners insurance in Arkansas is $1,350 per year, making it more affordable than average.

Read a full State Farm homeowners insurance review.

Amica: Best for Protecting Your Home Business

Amica Insurance has provided insurance policies for over a century and is a well-respected and financially solid company.

We chose them for our list because they offer the best options for Arkansas homeowners who have home-based businesses, including endorsements to protect home business equipment.

We also appreciate Amica for its online services, which make it easy to explore coverage and get a quote, and their well-reviewed mobile app.

The average cost of an Amica policy in Arkansas is $1,680 per year, putting it slightly above the state average, but many homeowners will pay less with discounts.

Allstate: Best for Homes in Flood Areas

Allstate is one of the largest and most respected property insurance companies in the United States and has a good reputation for its claims-paying ability.

We selected them for our list because many Arkansas homeowners live near the state's hundreds of rivers, creeks, and lakes, and Allstate will facilitate flood claims with FEMA if you purchase flood insurance to protect your home.

Allstate also has one of the best insurance company websites we’ve seen, with tons of resources and simple tools to get a quote or track a claim.

Allstate’s average premium in Arkansas is $2,455 per year, which makes it the most expensive company on our list, but you may pay considerably less with discounts.

Read a full Allstate homeowners insurance review.

Travelers: Best for Green Construction

Travelers Insurance has been protecting Americans from life’s unexpected events for more than 160 years, making it one of the oldest insurance carriers in the country.

The company has received strong financial and customer service ratings, but we put them on our list because they offer unique coverage–and a unique discount–for homeowners who buy or build homes with green materials.

We also like Travelers’ selection of policy add-ons that allow homeowners to customize their policies.

The average annual cost of Travelers homeowners insurance in Arkansas is $1,070 per year, making it one of the most affordable companies in the state.

USAA: Best for Active Military Members and Veterans

The United States Army and the United States Air Force both have bases in Arkansas, meaning that the state is home to many active-duty military members and veterans.

USAA provides affordable insurance to current and former military members, including special coverage to replace uniforms, and that’s why we chose them for our list.

We also like that the company has received excellent ratings for customer service and ethical practices. It is available in all 50 states plus the District of Columbia, making it ideal for military families who may frequently relocate.

The average cost of homeowners insurance with USAA in Arkansas is $1,950, which is higher than the state average, but some military members may prefer USAA for the special protections it offers them.

Shelter Insurance: Best for Affordable Coverage

Shelter Insurance is a regional company with a good reputation, providing insurance in 15 states, including Arkansas.

We chose Shelter for our list because, out of all the companies we researched, they had the most affordable coverage.

We also like that Shelter’s basic policy includes restoration coverage and offers several generous discounts.

Shelter’s average annual cost for Arkansas homeowners insurance is $860 per year, significantly less than the state average.

What Factors Affect the Price of Homeowners Insurance?

We’ve talked about the average cost of homeowners insurance in Arkansas, but here are the factors that will impact how much you pay.

Deductible

You’ll have a choice of deductibles when you buy homeowners insurance and the deductible you select will have an impact on how much you pay.

A low deductible will maximize your protection when you file a claim but translate to higher monthly costs, while a high deductible will mean you pay less each month but will pay more if you file a claim.

Policy Limits

Policy limits are determined by the value of your home and belongings, and as a rule, you’ll need a limit high enough to pay to rebuild your home and replace your personal belongings.

Arkansans living in high-value homes should expect to pay more for homeowners insurance than those living in more affordable homes.

Endorsements and Riders

A standard homeowners policy offers basic protection but many homeowners choose to customize their policies with endorsements and riders.

If you add custom coverage to expand your protection, be aware that each add-on will come at an additional cost.

Location

Your home’s location will impact the insurance company’s risk because homes in certain locations are more likely to have homeowners insurance claims than homes in other locations.

If you own a home that’s in a high-crime area, close to a body of water, or far from a firehouse, you’ll likely pay more than other homeowners in low-risk locations.

How Much Homeowners Insurance Do You Need?

One of the most common questions we are asked about homeowners insurance is about how much coverage to buy.

The easiest way to figure it out is to use the estimated cost to rebuild your home as a guide, and use these multipliers.

• Dwelling coverage should be high enough to pay to rebuild your home from the ground up if it’s destroyed in a covered event.
• Other structures coverage should pay for you to repair or rebuild any other buildings or structures on your property, including detached garages, sheds, barns, or fences, and you’ll likely need 10% of your dwelling coverage.
• Personal property coverage protects your personal belongings and pays to replace them if they are damaged, destroyed, or stolen; in most cases, your coverage should be about 50% to 70% of your dwelling coverage, not counting high-value items that are scheduled separately.
• Personal liability coverage protects your liability if a guest in your home is injured or their belongings are damaged or destroyed; we recommend between $100,000 and $500,000 of coverage.
• Guest medical coverage will reimburse your guests for medical expenses related to any injuries they sustain in your home, and most homeowners policies include $1,000-$5,000 of coverage per guest.
• Additional living expenses coverage will pay for you and other members of your household to live in a hotel or rent a place if a covered event makes your home uninhabitable, and you should buy about 20% of your dwelling coverage.

When you add everything up, you can see that you’ll need a policy with a limit of about twice the cost to rebuild your home, not including personal liability or guest medical coverage.

Remember that these totals are for basic coverage and do not include scheduled valuables or any add-on coverage you decide to purchase.

What Is and Isn’t Covered by Homeowners Insurance

Homeowners insurance protects you against many of the common things that can damage or destroy a home, but it won’t cover everything.

Here are the things that are covered by most standard homeowners insurance policies.

1. Your home and other structures on your property, including fences, sheds, barns, and detached garages.
2. The personal belongings of all residents of your home, whether those belongings are in your home or not when they are stolen, damaged, or destroyed.
3. Damage caused by covered events.
4. Your personal liability is related to guest injuries or damage to their property.
5. Guest medical expenses.

Remember that each of these coverages will be limited according to your policy specifications.

Here are some of the most common exclusions in a standard homeowners insurance policy.

• Earthquake damage
• Flood damage
• Pest infestation and related damage
• Power failure
• Neglect
• Government action
• Nuclear hazard

The first four items above may be remedied by purchasing an additional policy, which would be necessary for flood or earthquake damage, or by adding an endorsement to your policy to provide necessary coverage.

There is no way to remedy the neglect of your home, which is within your control, and likewise, there is no remedy for the rare occurrences of damage caused by government action or a nuclear hazard.

Synopsis

Here at PropertyNest, we consider it our mission to provide Arkansas homeowners with the guidance and facts they need to choose a homeowners policy that will give them the coverage and peace of mind they need at a price they can afford.

As you consider your options and obtain quotes, remember the factors that will impact your premium, including the estimated cost to rebuild your home, the value of your personal belongings, and the location of your home.

We recommend getting a minimum of three quotes from different carriers to compare costs and coverage before choosing a policy.

We also suggest asking about available discounts, using our list as a guide, since some carriers may not volunteer information.

Our Methodology

How We Selected the Best Homeowners Insurance Companies for Arkansas

Shopping for homeowners insurance can take a lot of time and patience because there are so many companies to choose from, and with different policy terms, coverage options may not match.

We used these five essential criteria to choose the six best homeowners insurance companies in Arkansas.

Average Cost

For many Arkansans, the cost of homeowners insurance is the most important criterion when choosing a new homeowners insurance company.

We made it a point to choose companies that provide excellent value and affordable costs when compared to the Arkansas state average, or who offer features and coverage that justify the cost.

Available Discounts for Homeowners Insurance

Getting discounts on homeowners insurance is one of the best ways to reduce your annual premium, especially when discounts can be layered to maximize savings.

We chose companies that offered three or more discounts, with special consideration given to those with easy-to-qualify for discounts such as policy bundling and signing up for autopay.

Standard Coverage and Add-Ons

Homeowners coverage must be sufficient to allow you to rebuild your Arkansas home and replace your belongings if they are destroyed in a covered event.

For this list, we chose companies that provide superior standard coverage and offer a broad range of add-ons to allow homeowners to customize their coverage.

Customer Support

Customer service is essential in insurance because filing a claim can be stressful, even with excellent support.

Insurance companies had to demonstrate a commitment to customer service with high customer service ratings and solid reviews to earn a place on our list. We prioritized companies that offer support online, by phone, and through mobile apps.

Technology

Today’s homeowners prize convenience and technology can and should play a role in making insurance convenient and easy to access.

We chose companies with well-designed and informative websites, useful mobile apps, and online services and support for policyholders.