Homeowners in Arkansas are prone to a handful of natural disasters that could impact their homes. For instance, tornadoes are known to run through the middle of the state without notice, severely damaging houses in their paths. Purchasing a home insurance policy is a great way to keep your home and its contents protected from these types of unexpected events.
The This Old House Reviews team spent hours researching dozens of providers to find the best home insurance companies in Arkansas and compared them on key factors such as customer service, reputation, and policy coverage. We also included quotes for a few houses throughout the state to give you an idea of general homeowners insurance pricing, but we ultimately recommend getting quotes from a few different providers to compare insurance premiums and offers based on your home’s details and where you live.
3 Best Home Insurance Providers in Arkansas
Here are the top providers of homeowners insurance in Arkansas:
State Farm: Best Endorsements
Our top home insurance pick for Arkansas residents is State Farm, which earned points for its overall performance in customer service, coverage, and reputation, in addition to its extensive list of endorsements and extra protection options.
With State Farm, you can add coverage for damage from a sewer or drain water backup, identity theft, loss assessment fees if you have an HOA, energy efficiency upgrades to your equipment replacements during a claim, mechanical or electrical breakdowns to your home systems, service line repairs, and coverage for roof surface repairs. Additionally, you can get extra protection separately through your local agent for items like home rental insurance or home business liability insurance.
State Farm also stands out for the following benefits:
- Features the 360Value tool, which estimates your home’s value and explains your coverage options during the quote process
- Connects customers with a local agent during the quote process to help them find the best coverage and sign up for a policy
- Has an option for $10,000 of coverage on medical payments to others, which is higher than most competitors
Get Your Free Home Insurance Quote: call 1-360-262-2561
Learn More: State Farm Home Insurance Review
*AM Best ratings accurate as of August 2023
Liberty Mutual: Best Discounts
- J.D. Power Rating: 805/1000
- AM Best Rating: A
If you’re looking to save money on your home insurance policy, Liberty Mutual is an ideal choice. This provider often offers a variety of discount options. For example, you could get a discount on your policy if you work at one of several partnered businesses in Arkansas or for attending a certain college. Not to mention, Liberty Mutual scored well in our review for providing top-rated coverage and offering additional benefits, such as 24-hour emergency repair service and inflation protection, which automatically increases your limits each year to account for inflation.
Take advantage of Liberty Mutual’s 10% discount for all online purchases by getting a quote on the company’s website.
Here are a few more reasons why we were impressed with Liberty Mutual:
- Offers the Home Protector Plus add-on, which increases coverage limits for unforeseen costs that may arise during a claim
- Typically offers lower home insurance rates than many competitors
- Has an online chat available during the quote process for any questions customers may have
Farmers: Most Customizable Coverage
- J.D. Power Rating: 792/1000
- AM Best Rating: A
Customizing your coverage is the best way to ensure you get exactly what you need without overpaying. With Farmers, customers can choose between 80% and 100% of their home’s value for their dwelling limit, between 5% and 200% of that dwelling limit for coverage on external structures, between 40% and 200% of the dwelling limit for personal property coverage, and between $100,000 and $2 million of coverage for personal liability coverage.
Get a quote from Farmers if you’re looking to customize your home insurance policy.
Here are a few other benefits offered by Farmers:
- Features a Declining Deductible benefit that credits you with $50 towards your deductible each year you don’t file a claim on your policy
- Offers extended coverage options to increase dwelling coverage by 25% or 50%, guaranteeing the most comprehensive coverage
- Provides a personal liability coverage option of $2 million, which is higher than most competitors
Whether it’s cost or unique add-on coverage, determine what’s most important to you before choosing a home insurance company. For example, you might lean towards a company like State Farm for its large selection of endorsements and extra protection, Liberty Mutual for lower prices and discount opportunities, or Farmers for policy customization.
Our ultimate recommendation is to get quotes from at least three providers to compare pricing and coverage based on your claims history and your property’s size, age, and construction type.
Compare Homeowners Insurance Companies in Arkansas
*Based on sample quotes we received on a 1,500-square-foot single-family house in Little Rock, Arkansas
**Figures pulled from the companies’ Better Business Bureau (BBB) profiles as of May 19, 2021
Arkansas Homeowners Insurance Coverage
No matter where you live in Arkansas, these six coverage types are standard in homeowners insurance policies:
- Dwelling coverage—This type of coverage pays to rebuild, repair, or replace your home’s structure after it’s damaged or destroyed. Your coverage limit for this category is typically 100% or more of your home’s total estimated value.
- Other structures coverage—This coverage is similar to dwelling coverage, but it specifically pays for the repair or replacement of external structures on your property that aren’t attached to your home, such as a detached garage, shed, or fence. The limit for this category is usually around 10% of your dwelling amount.
- Personal property coverage—If your personal belongings are stolen, lost, damaged, ruined, or vandalized, you can file a claim with your provider who will pay to have your items replaced or reimburse you for their depreciated value. Personal property coverage is typically around 60%–75% of your dwelling limit, but Farmers and State Farm let you customize this limit so you only pay for what you need. We recommend taking inventory of your belongings and estimating their value to ensure you add the right amount of coverage to your policy.
- Personal liability coverage—This coverage usually pays up to $100,000–$300,000 for medical bills or legal fees related to an accident on your property that you’re liable for. You may want to increase the limit for personal liability coverage if you have visitors over often to ensure you’re fully protected when an accident occurs.
- Medical payments to others coverage—Similar to liability coverage, this category pays for the medical bills for people who get injured on your property, but it’s specifically for accidents that aren’t your fault. The limit for this type of coverage is usually between $1,000 and $5,000, but State Farm offers a higher coverage limit option of $10,000.
- Loss of use coverage—This pays for any additional living expenses that may arise after a covered peril. For example, if you’re forced to relocate after a fire destroys your house, your provider will pay for you to stay at a hotel while your home is being rebuilt.
Factors To Consider Before Buying Homeowners Insurance
Consider the following factors before buying a home insurance policy:
- Home value—Knowing your home’s estimated value is an important part of purchasing a homeowners insurance policy, since that’s the basis for your dwelling coverage limit, which often determines the limits for other coverage categories. Although the providers in this review have a useful estimation tool on their websites, we recommend hiring a professional appraiser to look at your house and give you the most accurate estimate. Insuring your home under its value can result in being undercovered after a peril, causing excessive out-of-pocket spending.
- Endorsements—Often referred to as floaters, riders, or add-ons, endorsements are additional coverage options provided by insurers to help policyholders get the most out of their home insurance. For example, State Farm’s energy efficiency upgrade add-on pays for extra costs to replace a heating or cooling unit with an energy-efficient unit during a claim. Liberty Mutual offers a home computer and smartphone coverage endorsement to help replace your electronics up to a limit of $5,000, $7,500, or $10,000, depending on which one you choose.
- Discounts—Each of these providers offers savings opportunities for having fire alarms or home security systems installed in your home. They also offer discounts for auto owners who bundle a home insurance policy with car insurance. Get a quote from Liberty Mutual for the most discount opportunities out of these three providers.
FAQs About Homeowners Insurance in Arkansas
Our Rating Methodology
The This Old House Reviews Team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.
With that in mind, we created an objective rating system to score each home insurance company. Here’s what that review process looked like:
- We analyze the information on each company’s website. This allows us to determine what products and services are offered by each home insurance provider.
- We get a sample quote from the companies by either talking to a sales representative or by using the online quote tool. This tells us what a policy looks like and costs.
- We test customer service by talking to a company representative, finding out their hours of operation, and determining what technological features are available for customers.
- We update all of this information on a continuous basis, storing it in a proprietary database that allows us to compare dozens of home insurance companies against each other.
With this data, we created a rating methodology to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:
- Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
- State availability (7.5): Companies scored higher if they covered more states than their competitors.
- Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
- Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
- Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau ratings.
- Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.
The This Old House Reviews Team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability.
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.
Ratings listed in this article are accurate as of October 2022.
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