Are you looking for the best renters insurance policy in Arkansas for your needs? MoneyGeek rated the top renters insurance providers in the state based on three main criteria to help you get the coverage you require. In this article, you can get information on the average rate of renters insurance in Arkansas and a list of the state’s cheapest carriers.
The Best and Cheapest Renters Insurance in Arkansas for 2021: Rankings, Reviews and Rates
Cheap Renters Insurance Companies in Arkansas
It’s important to find the best coverage at the most affordable rate. In Arkansas, USAA is the cheapest renters insurance provider, but its services are offered only to military members and their families. The next two most affordable carriers in the state are Nationwide and State Farm. Nationwide’s policy costs $158 per year on average, while State Farm’s average price is $175.
The average premium for each renters insurance company comes from quotes across several ZIP codes in Arkansas. The prices are for a renters insurance policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
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Best Renters Insurance Companies in Arkansas
Affordability and customer service quality are the two main criteria considered by most customers when selecting a renters insurance provider. They want assurances that the carrier will process their claims fairly and quickly.
MoneyGeek scored firms on three key factors: unique pricing data, financial stability ratings from AM Best and customer service scores from J.D. Power. Based on the findings, the highest-rated insurer in Arkansas for most people is Nationwide, with a score of 88 out of 100. If you're a military member and are eligible for a policy, USAA is our top pick.
USAA stands out for its excellent coverage, customer service and competitive rates. On the flip side, availability is limited, as USAA only offers policies to military members and their families.
Nationwide offers discounts up to 15% for home protection devices like burglar, fire and smoke alarms. You can use their online quote tool to quickly get an estimate on your cost.
State Farm offers plenty of customization so renters can get protection for certain rare events. For instance, you can add waterbed and earthquake coverage, as well as identity theft protection. State Farm’s online quote feature gives you quick and accurate cost estimates.
Allstate presents comprehensive renters insurance coverage in Arkansas. You can include identity theft protection and flood insurance in your policy. Allstate provides discounts for factors like a security system in your home, which qualifies for a rebate of up to 15%. Allstate’s app allows you to produce a photo record of your property, so you can assess the amount of coverage you require.
Pros of MetLife's coverage include 24/7 claims filing process, identity protection services, multiple discounts and the ability to bundle your insurance.
Largest Renters Insurance Companies in Arkansas
In Arkansas, the renters insurance companies with the largest market share are State Farm (26.27%), Farm Bureau (14.01%), Shelter (8.33%), Allstate (8.16%) and Farmers (6.56%). Together, these five firms provide about 63% of the renters insurance packages in the state. Larger providers are more likely to be financially stable, so you can rest assured you’ll get the proper payout for your claim.
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Average Cost of Renters Insurance in Arkansas
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In Arkansas, the average yearly cost of renters insurance is $197, $38 more than the U.S. average of $159. These costs are for a renters insurance plan that includes personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
By comparing renters insurance rates, you can find affordable coverage for your unique circumstances. For instance, in Arkansas, the difference between the cheapest and costliest provider is $106 per year on average. This means you can save about $9 per month by selecting the cheapest carrier, Nationwide, rather than the most expensive company, Farmers.
What Factors Impact Renters Insurance Cost in Arkansas
Several factors can impact your renters insurance cost in Arkansas, and you need to consider the following factors when making your purchase decision:
- Deductible: You need to pay a deductible if you want your insurer to process a claim. Plans with lower deductibles have higher premiums because the insurance provider needs to pay more to cover your items. Conversely, policies with higher deductibles have lower rates because you need to pay more out of pocket for a claim.
- Coverage Amount: Getting additional features and add-on coverages will increase your renters insurance premium.
- Location: Your residential location plays a significant role, as localities with a higher risk of bad weather and crime will have higher premiums. In contrast, neighborhoods with easy access to public services like a fire station can have lower premiums.
- Credit Score: Your renters insurance provider in Arkansas will evaluate your credit score to finalize your rate. Those with a bad credit score will pay higher rates, as carriers think they are more likely to file claims. On the other hand, a strong credit score can make you eligible for discounts.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): Insurance firms will reimburse your claim based on each item’s ACV or RCV. ACV packages pay depreciated rates for used property, while RCV policies reimburse you for a new product of similar type and quality. RCV policies are typically costlier than ACV, as they make higher payments for claims.
Renters Insurance in Arkansas: What You Need to Know
Renters insurance is a smart investment, as it protects your valuable goods at a relatively low price. In Arkansas, about 33% of the population are renters, and the average monthly rental cost is $742. For a basic policy that includes $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible, the average monthly premium is $16, which is 2.21% of the average monthly rental rate in the state.
What Renters Insurance Typically Covers in Arkansas
It’s important to comprehend the coverage options provided by renters insurance policies in Arkansas before you buy one. A standard package covers the four basic coverage types: medical payments, liability insurance, additional living expenses and personal property.
In Arkansas, personal property insurance will typically pay for damages caused by major natural disasters like wildfires and tornadoes.
What Renters Insurance Typically Does Not Cover in Arkansas
Though standard renters insurance in Arkansas can offer protection against many unexpected events, it may not cover some common issues like those outlined below.
- Structural Damage: Your policy does not cover damage to your building’s structure and frame. It is the landlord’s responsibility to purchase this coverage.
- Earthquake Damage: Earthquakes are generally not covered by renters insurance policies, and you need to buy an add-on to get protection.
- Flooding: Your policy may cover water damage due to broken pipes but may exclude flooding because of a natural disaster like a hurricane or rainstorm. Flooding is a relatively common natural disaster in Arkansas. Therefore, it’s advisable to obtain flood insurance via the National Flood Insurance Program (NFIP).
- Expensive Items: You typically need to buy an added rider to protect high-end items, as they are not generally covered by renters insurance.
- Roommate Property: Renters insurance covers only your property and not your roommate’s possessions. They have to purchase their own coverage.
Do proper research and read the fine print of your renters insurance policy to learn all the details. You can also get information from the provider about the coverage features and options. This knowledge can help you choose the right insurer and file successful claims.
FAQs About Renters Insurance in Arkansas
Renters Insurance in Arkansas Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from the top insurance companies in Arkansas provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Arkansas. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
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