Updated: January 13, 2026
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USAA offers the cheapest homeowners insurance in Arkansas, with average rates of $2,491 per year.
USAA, Nationwide, State Farm, Farmers and Shelter cost 18% to 51% below Arkansas's $5,040 average.
Bundle your home and auto insurance policies to save 10% to 25% on premiums — one of the biggest discounts Arkansas insurers offer.
USAA offers the cheapest home insurance company rates in Arkansas at $2,491 per year, but eligibility is limited to military members, veterans and their families. Nationwide comes in second at $2,703 annually and provides coverage to all Arkansas residents. These five most affordable insurers save homeowners between $927 and $2,549 compared to the state average.
| USAA | $208 | $2,491 | -51% |
| Nationwide | $225 | $2,703 | -46% |
| State Farm | $255 | $3,061 | -39% |
| Farmers | $310 | $3,717 | -26% |
| Shelter | $343 | $4,113 | -18% |
*The rates above are for homeowners ages 41 to 60 with good credit and no claims history. Quotes are for a home built in 2000 insured for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage with a $1,000 deductible.
According to our cost research, USAA offers the most affordable rates across all homeowner situations in Arkansas. Whether you're insuring an older home, live in a high-risk fire zone or own a larger property, it provides the cheapest coverage with rates ranging from $1,507 for newer homes to $2,721 for larger properties.
| Older Homes | USAA | $2,528 |
| Newer Homes | USAA | $1,507 |
| Young Homeowners | USAA | $2,599 |
| Senior Homeowners | USAA | $2,512 |
| High-Risk Fire Homes | USAA | $2,791 |
| Smaller Homes | USAA | $2,267 |
| Larger Homes | USAA | $2,721 |
The cheapest company may not be your best fit. Customer service quality, coverage options and claims handling matter beyond price. Our guide to the best home insurance companies in Arkansas compares insurers across these factors.
Risk factors differ by location, so insurers price policies differently across Arkansas. USAA offers the lowest rates in Conway and Little Rock, while Nationwide provides better pricing in Hatfield.
| Conway | USAA | $2,183 |
| Hatfield | Nationwide | $2,694 |
| Little Rock | USAA | $2,289 |
| Mountainburg | USAA | $2,722 |
Your coverage needs determine which insurer offers the best rate. Nationwide provides the most affordable basic coverage at $1,309 annually for $100,000 dwelling, $50,000 personal property and $100,000 liability protection. USAA delivers better rates for mid-range and high-value homes, becoming the cheapest option at premium coverage levels like $1,000,000 dwelling and liability limits.
| Nationwide | $109 | $1,309 |
| State Farm | $136 | $1,626 |
| USAA | $142 | $1,699 |
| Shelter | $159 | $1,902 |
| Farmers | $182 | $2,187 |
Arkansas homeowners can cut their insurance costs by hundreds of dollars annually through discounts, higher deductibles and smart home improvements.
Combine your home and auto insurance with the same company to save 10% to 25% on both policies. State Farm, Allstate and Progressive offer bundle discounts to Arkansas homeowners.
Raise your deductible to lower your annual premium, though you'll pay more out of pocket when filing a claim. Choose a deductible amount you can afford if you need to file a claim.
Arkansas allows insurers to use credit-based insurance scores when setting rates. Improving your credit score can save you hundreds of dollars annually on your home insurance premium.
Filing multiple claims within three years triggers rate increases. Use homeowners insurance for major losses rather than small repairs you can afford.
Contact your insurer to find all discounts you qualify for beyond bundling. Review your policy annually to add new discounts as your situation changes.
Frequently asked questions about the cheapest home insurance in Arkansas:
Standard homeowners insurance in Arkansas covers tornado damage to your dwelling and personal property. Arkansas sits in a high tornado risk area, making this coverage critical for protecting your home. Check your policy for specific exclusions or items that need additional coverage.
Flood insurance isn't required statewide in Arkansas, but your mortgage lender requires it if you're in a FEMA high-risk flood zone. Consider getting flood coverage even if it's not required; standard homeowners insurance doesn't cover flood damage. This protection saves you from major financial losses during flood events.
Replacement cost coverage pays the full amount to replace damaged property without depreciation, letting you rebuild to original condition. Actual cash value coverage pays replacement cost minus depreciation, reflecting the item's current market value. Most Arkansas lenders require replacement cost coverage for stronger property protection.
You can cancel your Arkansas home insurance policy anytime, though some insurers charge cancellation fees. You'll receive a prorated refund for the unused premium. Your mortgage lender requires proof of insurance, so secure a new policy before canceling to avoid gaps in coverage.
Our rate analysis reflects what most Arkansas homeowners need: standard coverage for a typical single-family home built within the past 25 years.
We collected quotes from major insurers using a consistent homeowner profile across Arkansas. This approach shows how each company prices the same coverage by removing variables that make direct comparisons difficult. The base profile represents the most common home insurance scenario in Arkansas.
Standard Coverage Profile:
For specialty scenarios like older homes, high-value properties and rural locations, we adjusted variables from this base profile while keeping other factors constant. This shows how specific characteristics affect your rate compared to the standard homeowner.
These figures are estimates based on statewide averages. Your actual premium depends on your home's location, age, construction type and your claims history. Compare quotes from at least three insurers to find your lowest rate.
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.
