Home insurance in Arkansas costs about $384 monthly or $4,607 annually on average. Homeowners pay $164 more per month, or $1,972 more annually, than the national average, making it the fifth most expensive state for home insurance.
Average Home Insurance Cost in Arkansas
Updated: December 1, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Dec 06, 2025
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Key Takeaways
Home insurance costs in Arkansas range from $4,087 per year to well over $33,093, depending on your financial history, home details, chosen coverage, and provider.
Arkansas' home insurance premiums are the fifth most expensive in the country, at 75% over the national average.
To find the best home insurance in Arkansas, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in Arkansas?
| Arkansas Average | $384 | $4,607 | 75% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200,000 Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Arkansas?
Home insurance is expensive in Arkansas mainly due to the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Arkansas homeowners make more claims than the average. The Insurance Information Institute reports that in 2023, the state recorded one of the lowest total incurred insurance losses (claim value) in the country, at 6.4 billion dollars, which may lead insurance costs to lower.
High Weather Risks
Due to Arkansas's location in Tornado Alley and vulnerability to severe weather systems, the likelihood of expensive claims is significantly higher. In 2024, weather-related risks were dominated by tornadoes, severe thunderstorms with damaging hail, and flash flooding, with the state's geography making it particularly susceptible to supercell storms that can cause widespread property damage across both rural and urban areas.
Rising Material and Labor Costs
Construction costs accounted for a record 64% of new home prices in 2024, up from around 61% in 2022, according to the National Association of Home Builders' (NAHB) latest survey. Since 2020, wages for construction workers have risen by 35%, raising the cost of damages. These factors contribute to higher claims costs for insurers.
State Insurance Laws
Home insurance is required if you're getting a mortgage, and with the state's frequent severe weather events driving up premiums, some residents in high-risk areas face affordability challenges that can limit their coverage options. This creates a concentrated risk pool where insurers must balance adequate coverage with the financial realities of insuring properties in tornado and storm-prone regions of Arkansas.
What Affects Arkansas Home Insurance Costs?
For most home insurance companies, pricing is affected by these factors:
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
Each factor affects what you'll pay in Arkansas differently.
How Much Does Coverage Affect Home Insurance Costs?
Your coverage choice matters most for Arkansas home insurance rates, which run from $2,285 to $14,709 yearly. Buy more coverage or pick a lower deductible and you'll pay more. Choose less coverage or a higher deductible and your costs drop.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $190 | $2,285 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $1,226 | $14,709 |
How Much Do Home Details Affect Home Insurance Costs?
Construction details (age, materials and roofing) produce Arkansas's second-largest rate variation: $152 to $395 monthly. Rebuild expenses and damage probability both stem from these characteristics, generating substantial premium gaps between otherwise similar properties.
| Lowest | New | Superior | Tile | $152 | $1,827 |
| Highest | Old | Frame | Shake-Treated | $395 | $4,740 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Carrier selection creates Arkansas's third-largest cost impact. Premium variation spans 37% below to 151% above state averages, a gap that makes comparison shopping essential rather than optional for budget-conscious homeowners.
| Lowest | State Farm | $229 | $2,750 |
| Highest | Travelers | $919 | $11,032 |
How Much Does Credit Affect Home Insurance Costs?
Credit scores signal reliability to carriers, creating premium swings up to 75%. Annual costs span $2,607 to $11,780 depending on credit tier, a $9,173 difference based solely on creditworthiness.
| Lowest | Excellent | $217 | $2,607 |
| Highest | Poor | $982 | $11,780 |
How Much Does Claims History Affect Home Insurance Costs?
Claims frequency elevates insurer risk perception and premium charges. Arkansas claims history produces relatively modest cost impacts (13% variation or $691 annually) compared to construction details, carrier choice and credit score influences.
| Lowest | Claim free for 5+ years | $366 | $4,395 |
| Highest | 2 claims in past 5 years | $488 | $5,861 |
Tips to Save on Arkansas Home Insurance
With high home insurance costs in Arkansas, finding ways to save on premiums is important. Explore your options whether you're buying a new home or want to cut current expenses. Below are tips to help you secure the best and cheapest home insurance in Arkansas tailored to your needs.
- 1Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to focus your search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2Research Costs and Discounts Beforehand
Learn what people like you pay for coverage on similar homes to find good rates. Ask about every discount you might qualify for because some insurers only give you savings if you bring them up.
- 3Compare Multiple Providers Through Different Avenues
Shop several insurers to find coverage that fits. Try online comparison sites, brokers, company websites, and agents because each channel produces different quotes.
- 4Bundle Your Policies
Combining home and auto insurance in Arkansas can save you 19% on auto insurance and 35% on home insurance.
- 5Reduce Your Personal Risk Profile
Cut your premiums by upgrading your home with storm shutters or security systems. Improving your credit score drops your costs too. Jump from fair credit to good credit and you'll save 28% on average.
Arkansas Home Insurance Calculator: Bottom Line
Home insurance costs vary mainly due to coverage level and home details. To find affordable rates, research your coverage needs and compare average costs, then shop around using our estimate tool to secure the best deal.
Homeowners Calculator Insurance Arkansas: FAQ
The cost of homeowners insurance in Arkansas depends on several factors. To help you estimate your expenses, MoneyGeek answers common questions below about home insurance in the state.
How much does homeowners insurance cost in Arkansas?
Arkansas's average monthly home insurance cost is $384 for a dwelling coverage of $250,000. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the replacement cost of their home, often with help from an appraiser. While this study uses a baseline coverage of $250,000, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your chosen coverage level and provider. Your credit score and home details also influence your rates.
How We Determined Our Arkansas Home Insurance Estimates
When determining the average cost of home insurance in Arkansas, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.