Home insurance costs in Arkansas rank among the more expensive nationwide at $420 monthly. The state's average premium is 45% above the national average, with Arkansas homeowners spending an extra $131 each month compared to the typical U.S. policyholder, who pays $289.
Average Home Insurance Cost in Arkansas
Updated: January 7, 2026
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Key Takeaways: Arkansas Home Insurance Rates
Arkansas homeowners pay around $420 monthly or $5,040 yearly for home insurance, with premiums 45% higher than the national average.
Determine your coverage needs, gather multiple quotes and research providers to find the best home insurance in Arkansas for your situation.
MoneyGeek's free home insurance calculator helps estimate your Arkansas costs in seconds without entering personal information.
How Much Is Home Insurance in Arkansas?
| Arkansas | $5,040 | $3,467 | 45% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 24, 2026
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What Affects Average Arkansas Home Insurance Costs?
Insurance companies consider your location and coverage amounts first when pricing Arkansas policies. They also examine your home's construction quality, your credit score and whether you've filed claims. Your insurer choice creates the largest price variation among these factors.
Average Arkansas Home Insurance Cost by City
Premium variations across Arkansas reflect each city's unique risk profile. Tornado frequency, flood vulnerability and property values all influence local rates. Cities like Little Rock in central Arkansas often see different pricing than northwestern communities due to these geographic and weather factors.
| Conway | $387 | $4,641 |
| Hatfield | $462 | $5,547 |
| Little Rock | $391 | $4,694 |
| Mountainburg | $469 | $5,625 |
Average Arkansas Homeowners Insurance Pricing by Coverage Level
Annual premiums in Arkansas span from $3,050 for basic coverage to $14,953 for comprehensive protection. Homeowners can reduce costs by accepting higher deductibles or lowering dwelling limits, though this means taking on more out-of-pocket risk when filing claims.
| $100K Dwelling / $50K Personal Property / $100K Liability | $254 | $3,050 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $420 | $5,040 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $665 | $7,978 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $933 | $11,201 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $1,246 | $14,953 |
Average Cost of Arkansas Home Insurance by Company
Your insurer choice matters more than any other factor in Arkansas. Annual costs range from $2,491 at USAA to $13,720 at Travelers for identical coverage. This $11,229 spread makes comparison shopping essential for Arkansas residents.
| USAA | $208 | $2,491 |
| Nationwide | $225 | $2,703 |
| State Farm | $255 | $3,061 |
| Farmers | $310 | $3,717 |
| Shelter | $343 | $4,113 |
| Allstate | $383 | $4,595 |
| Auto-Owners Insurance | $493 | $5,921 |
| Travelers | $1,143 | $13,720 |
Arkansas Homeowners Insurance Costs by House Age
A 40-year home age difference adds $2,147 to annual premiums in Arkansas. Homes from 1980 cost 67% more to insure than 2020 builds because older construction lacks modern safety features. Newer properties meet current building standards, reducing claim likelihood and premium costs.
| Newer | $266 | $3,186 |
| Middle Age | $420 | $5,040 |
| Older | $444 | $5,333 |
Average Arkansas Home Insurance Cost by Credit Score
Premium costs in Arkansas vary by more than 300% based on credit alone. The gap between excellent and poor credit profiles spans $6,527 per year. By maintaining good credit, Arkansas homeowners can save thousands annually on home insurance.
| Excellent | $179 | $2,151 |
| Good | $420 | $5,040 |
| Below Fair | $532 | $6,378 |
| Poor | $723 | $8,678 |
Why Is Home Insurance So Expensive in Arkansas?
Tornadoes and hail create constant claim activity across Arkansas, pushing insurers to charge higher premiums. Rising labor and material costs for repairs add another layer of expense. These combined factors make Arkansas one of the nation's most expensive states for homeowners coverage.
Tornado Risk
According to the National Oceanic and Atmospheric Administration (NOAA), Arkansas experiences an average of 40 tornadoes annually, with peak activity from March through June causing substantial property damage. These weather events create consistent claim activity, forcing insurers to maintain higher premium rates.
Claims Frequency
Claims history directly impacts Arkansas insurance costs. Your premium starts at $5,040 with no claims, but jumps to $5,843 after one filing. A second claim within five years pushes your rate to $6,517, nearly $1,500 above the baseline.
Geographic Risk Factors
Apart from tornadoes, Arkansas's location in the mid-south exposes properties to multiple perils including hail, ice storms and flooding. Properties in high-risk zones require additional coverage considerations, increasing overall insurance costs.
Tips to Save on Arkansas Home Insurance
Home insurance costs in the state tend to run higher, which makes finding the cheapest home insurance in Arkansas a priority. Smart strategies can help reduce your premiums and these practical tips can help you save on coverage.
- 1Calculate Coverage Needs
Determine your home's replacement cost based on current construction prices, not market value. Create a detailed inventory of belongings to establish personal property coverage requirements. Arkansas homeowners in areas like Little Rock should consider add-ons such as water backup coverage for flood-prone regions or increased replacement cost coverage for older homes.
- 2Research Rates and Discounts
Use MoneyGeek's Arkansas home insurance calculator to estimate fair pricing based on your property's location, age and size. When gathering quotes, ask insurers about available discounts for security systems, newer construction, claim-free history and protective devices like smoke detectors. These discounts can reduce your premium costs.
- 3Compare Multiple Providers
Collect quotes from at least three insurance companies, comparing more than just price. Review customer satisfaction ratings, claims processing speed and financial strength ratings. A lower premium from Fort Smith insurers may not provide value if the company has poor service or delays claim payments during Arkansas storm season.
- 4Bundle Home and Auto
Combine your home and auto insurance policies with one provider to unlock bundling discounts ranging from 10% to 25% in Arkansas. This strategy works well for homeowners in Fayetteville and surrounding areas where multiple policy discounts can create substantial annual savings on both coverage types.
- 5Lower Your Risk Profile
Install safety features like smoke detectors, security systems or storm shutters to qualify for premium reductions. Maintaining a claim-free record for five years saves $803 annually compared to filing two claims. Improving credit from below fair to good reduces premiums by 21%, saving Arkansas homeowners over $1,300 yearly.
Calculate Arkansas Homeowners Insurance Costs: FAQ
Arkansas homeowners insurance costs depend on many factors specific to your property and location. These frequently asked questions help you understand what affects your premiums and estimate potential expenses for your home.
How much will my premium increase after filing a claim in Arkansas?
Arkansas homeowners see their premiums jump by $802 after one claim and $1,477 after two claims compared to claim-free customers. Customers without claims pay $5,040 annually on average. One claim pushes your rate to $5,843 per year. Two claims cost $6,517 annually. Claims stay on your record for five years. You'll pay these higher rates for the full five years.
What's the best way to compare home insurance quotes in Arkansas?
Request quotes from at least three insurers using identical coverage amounts to ensure accurate comparisons. Compare not just premiums but also financial strength ratings, customer service reviews and claims processing times to find the best overall value.
Do I need flood insurance in Arkansas?
Standard homeowners policies don't cover flood damage, and Arkansas experiences substantial flood risks along major rivers and low-lying areas. FEMA flood maps identify high-risk zones where mortgage lenders usually require separate flood insurance through the National Flood Insurance Program.
How much can I save by choosing a different insurer in Arkansas?
Comparing home insurance rates in Arkansas saves you thousands every year. USAA offers the lowest rates at $207 monthly. Travelers costs $1,143 per month for the same coverage.
The price gaps exist across all price ranges. Farmers costs $310 monthly. Shelter charges $343. That's $33 more each month, or nearly $400 annually. Get quotes from at least three insurers to find your best rate.
Does home insurance in Arkansas cover tornado damage?
Yes, standard home insurance policies in Arkansas cover tornado damage to your dwelling, other structures and personal property. Wind damage from tornadoes gets covered: roof damage, broken windows, destroyed structures, all of it.
You'll pay your deductible first. Most Arkansas insurers use percentage deductibles for wind damage. Instead of a flat dollar amount, you pay a percentage of your home's insured value.
Tornado damage falls under wind coverage in your homeowners policy. Flying debris, fallen trees, structural collapse from tornado winds: your policy handles these. Your belongings inside the home are covered too if tornado activity damages or destroys them.
Insurers in tornado-prone areas of Arkansas often set separate wind deductibles higher than your standard deductible. Check your policy now to know what you'll owe out of pocket when tornado damage happens.
How We Analyzed Arkansas Home Insurance Rates
MoneyGeek calculated Arkansas home insurance estimates by analyzing real rate data across multiple scenarios. This approach shows how specific factors influence what homeowners actually pay for coverage.
We built our analysis around a standard homeowner profile: $250,000 in dwelling coverage, $125,000 for personal property, $200,000 in liability protection, and a $1,000 deductible. The model assumes a home built in 2000 with frame construction, a composition roof, and no insurance claims filed in the last five years.
These specifications match typical Arkansas homeowners. The $250,000 dwelling amount aligns with median home values across the state, while homes built in 2000 represent the most common age category for Arkansas properties.
Our research method involved adjusting one factor while keeping everything else identical. For instance, we compared premiums for homes built in 1980, 2000, and 2020 using the same coverage amounts and homeowner profile. This process shows exactly how much each variable affects your premium.
Your actual premium will be different depending on your home's specific features, location, claims record, credit profile, and insurance company. The rate variations shown here demonstrate which factors have the biggest impact when you shop for Arkansas home insurance.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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.
sources
- NOAA’s National Weather Service. "Severe Weather Maps, Graphics and Data Page." Accessed January 24, 2026.