Homeowners Insurance in Arkansas

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Best Homeowners Insurance Companies in Arkansas

Tornadoes and flooding are frequent perils for homeowners in Arkansas. Having the right homeowners insurance can go a long way towards providing you with the protection you need to keep you and your home safe.

In looking at homeowners insurance options in Arkansas, we examined providers based on their average rates, customer satisfaction and coverage options. Based on our findings, these are the best home insurance companies in Arkansas:

State Farm: most popular homeowners insurance

State Farm has an average home insurance rate in Arkansas of $1,407 a year. Although this is $115 more than the state average of $1,292, State Farm still covers 26.2% of insured Arkansas homeowners despite its higher cost.

A large part of State Farm's popularity is its customer-centric reputation. J.D. Power gave State Farm an above-average four-out-of-five score for customer satisfaction in its 2019 home insurance customer satisfaction study. This makes State Farm the second-highest rated home insurer on our list and the fourth-highest rated in J.D. Power's satisfaction study.

Furthermore, State Farm received a Complaint Index of 0.23 in Arkansas from the National Association of Insurance Commissioners. The lower an insurer's Complaint Index, the fewer the complaints it has. The average Complaint Index in Arkansas is 0.35, putting State Farm well below the state average. With these rankings in mind, we consider State Farm an excellent choice for home insurance.

Arkansas Farm Bureau: best local home insurer

If you're looking for a homeowners insurance provider that focuses on Arkansas, we strongly recommend Arkansas Farm Bureau. They are an excellent local combo of below-average premiums and high customer satisfaction.

Arkansas Farm Bureau's average yearly home insurance premium is $1,230, $62 below the state average of $1,292. If you bundle a home insurance policy with auto insurance, you could save on both policies.

Arkansas Farm Bureau holds the second-highest home insurance market share in Arkansas of 14.4%. While not as large a slice of the pie as State Farm, it’s still more than three times higher than the state average home insurance market share of 4.1%. Arkansas Farm Bureau is well ahead of other home insurance providers in Arkansas in terms of popularity.

Arkansas Farm Bureau also holds a low Complaint Index of 0.11, less than a third of the average Arkansas Complaint Index of 0.35. This combination of price and customer satisfaction is a strong indicator of why Arkansas Farm Bureau is the local favorite.

Farmers: cheapest rates

Farmers’ average yearly home insurance rate in Arkansas is $854, $438 below the state average rate of $1,230. A reason for this is the home insurance discount options that Farmers provides:

  • If you have one of the main systems in your home such as plumbing, electrical or HVAC redone by a licensed contractor, it could result in a significant discount.
  • Have you recently had your roof replaced? Farmers has a discount for that.
  • You can get a discount just for signing up for Farmers' epolicy paperless program.

This is but a fraction of the money-saving options that Farmers provides. Farmers also has a claim forgiveness program. This means that if you're with Farmers for at least five years without a claim, your next claim wouldn't result in a rate increase. A claim on your home insurance policy may increase your premium. When you consider that a claim usually stays on your policy for three years, you can get an idea of how much of a savings this program may provide.

Farmers’ average home insurance rates are well below the state's average rate in larger cities. Starting at an average of $798 yearly in Springdale and going up to $995 in North Little Rock, Farmers is our main recommendation if low rates are your main priority.

farmers home insurance rates in Arkansas

USAA: best for retired and current military personnel

According to the Department of Veterans Affairs, 9.8% of Arkansas residents are military veterans. USAA focuses on providing insurance to veterans and their families. With below-average rates, a concentration on military members and a best-of-the-best customer satisfaction record, USAA is a top choice for Arkansas veterans.

USAA offers home insurance coverage benefits that can be hard to find from other homeowners insurance companies. If you are living in a war zone, you can get dwelling and personal property insurance coverage. War zones are typically excluded by other home insurance providers, making this an excellent perk. Military uniforms are also covered for repair or replacement.

On top of having a below-state-average home insurance rate of $1,219, USAA also provides the best claims satisfaction in the home insurance industry. J.D. Power gave USAA one of only three five-out-of-five ratings in its 2019 home insurance customer satisfaction study. NAIC gave USAA a Complaint Index of 0.15, the second-lowest rating in Arkansas. If you are active or retired military living in Arkansas, USAA should definitely be one of your options for home insurance.

Home insurance companies in Arkansas

The best homeowners insurance companies in Arkansas are a mix of nationally-recognized name brands and local mainstays. The following table shows the biggest home insurance providers ranked by popularity in Arkansas:

*According to J.D. Power's 2019 home insurance study.

Biggest home insurance companies in Arkansas
Company Market share Overall customer satisfaction* NAIC Complaint Index (lower is better)
State Farm 26.2% 4/5 0.23
Arkansas Farm Bureau 14.4% - 0.11
Shelter 8.4% - 0.34
Allstate 8.2% 3/5 0.29
Farmers 6.8% 3/5 0.37
USAA 5.6% 5/5 0.32
Auto-Owners 2.5% 4/5 0.20
*According to J.D. Power’s 2019 home insurance survey.

Average cost of homeowners insurance in Arkansas

The average cost of home insurance in Arkansas is $1,292, just $77 above the national average of $1,215. This average rate was compiled from our study of over 1,000 quotes from seven of the top home insurers in the state.

Average rates are based on estimates by Quadrant Information Services. Your rates may vary.

Average home insurance rates in Arkansas
  Arkansas U.S.
Average yearly rate $1,292 $1,215
Average monthly rate $108 $101
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

In looking at the top Arkansas home insurance providers we studied, we found the cheapest average rates came from Farmers, at $854 yearly, and Shelter, at $1,150 yearly. While there are a few top home insurers below the Arkansas average rate, most of the big-name providers had rates significantly higher than the state average. State Farm comes in at $1,407 a year, $115 above the Arkansas average rate, going up to Auto-Owners at $402 above the state average, at $1,694 yearly.

average cost of homeowners insurance companies in arkansas

Homeowners insurance rates in Arkansas by city

Jefferson County has the highest average home insurance rate in Arkansas of $1,477 a year. Most of the larger cities in Arkansas stay under the state average of $1,292, excluding Pine Bluff, at $1,381, and Fort Smith, at $1,391. The table below shows how the largest cities in Arkansas' average home insurance rates compare.

Average rates are based on estimates provided by Quadrant Information Services. Your rates may vary.

City Average yearly rate
Bentonville $1,216
Conway $1,245
Fayetteville $1,221
Fort Smith $1,391
Jonesboro $1,238
Little Rock $1,243
North Little Rock $1,263
Pine Bluff $1,381
Rogers $1,181
Springdale $1,194
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Arkansas homeowners insurance perils

A key reason for Arkansas' higher-than-average home insurance costs are the weather threats that are all too common there. The frequency of flooding and tornadoes that occur in Arkansas make for a high-risk insurance threat.

Flooding

The Arkansas River flooded in the summer of 2019, causing an estimated $3 billion in damages. The threat of flooding in Arkansas is made worse by the fact that flood damage isn't typically covered by home insurance. You can get flood insurance through FEMA's NFIP program. NFIP flood insurance can be purchased through Arkansas home insurance providers who take part in the NFIP program, as well as some independent insurers.

Tornadoes

According to the National Weather Service, Arkansas experienced 33 tornadoes in 2019, which is slightly higher than the state average of 32 tornadoes a year. Tornadoes can cause extensive damage to the windows, siding and roof of a home, potentially costing tens of thousands of dollars to repair.

Tornado damage is usually covered by home insurance. You'll want to make sure your policy limits are sufficient for full replacement if necessary. If damages due to a tornado exceed your coverage limits, the remainder of the damage needs to be paid out of pocket.

Methodology

QuoteWizard compiled and analyzed 1,039 quotes from seven of the top homeowners insurance companies in Arkansas. As a base profile, we used a home valued at $141,204 and built in 1983 as the median.

The home insurance policy we rated included standard coverage amounts based on $141,204 in dwelling coverage and a $1,000 deductible:

  • Dwelling coverage: $141,204
  • Personal property coverage (50% of dwelling): $70,602
  • Other structures coverage (10% of dwelling): $14,120
  • Loss of use coverage (20% of dwelling): $28,241
  • Liability coverage: $100,000

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