Picking the right home insurance for your property requires more than just finding the cheapest quote. To help Arkansas homeowners get the best possible coverage, we collected hundreds of quotes and examined satisfaction ratings for all of the state's major insurance providers.
Compare Home Insurance Quotes from Providers in Arkansas
The best deal we found for a typical home insurance policy in Arkansas cost $858 per year. See how our analysis of rates and reviews helped us identify the top choices for homeowners insurance in the Land of Opportunity.
The best homeowners insurance companies in Arkansas
We looked at the prices, coverage options, customer service and financial stability of the top insurance companies in Arkansas in order to determine which is the best. We have a top pick we think is best for most people, along with additional choices for people with more specialized insurance needs.
Best home insurer for most people: Travelers Insurance
Our overall recommendation for homeowners insurance in Arkansas is Travelers, because it has the best overall mix of low prices, good customer service and financial stability. The company's average price in Arkansas is $892, or 29% less than the average price across all companies.
Travelers also has well-regarded customer service: it has a complaint index from the National Association of Insurance Commissioners (NAIC) of 0.30, meaning that it receives 30% as many complaints as a typical company nationwide. This suggests that Travelers' customers tend to be satisfied with the service they receive.
As a major national insurer, Travelers has excellent financial stability. It has an A++ rating from A.M. Best — the highest rating. This means Travelers has an "unsurpassed" ability to meet claim demand, even if there is a widespread disaster or negative economic climate.
Best customer service: Farm Bureau
We recommend Farm Bureau of Arkansas to Arkansas homeowners who prize excellent customer service above all else. Farm Bureau has an impressively low 0.11 NAIC complaint index, meaning they received nearly ten times fewer complaints than a typical home insurance company nationwide.
Farm Bureau insurance is primarily available through independent agents, meaning you must work with an agent to buy and manage your policy. For people who want a strong person-to-person customer service experience, we think that's a plus: you have someone who can answer questions, provide guidance and help you through the process of buying insurance and making a claim, should you need to.
However, there are a few drawbacks to Farm Bureau home insurance. For one, their rates are about $180 more per year than our main pick, so you'll likely spend more for equivalent coverage. Second, Farm Bureau's coverage options are not quite as robust as our main pick, so if you have very particular coverage needs, you may not be able to get the right policy from Farm Bureau.
Most affordable: Farmers Insurance
Our pick for the most affordable homeowners insurance option is Farmers, which gave us the lowest average price for homeowners insurance in Arkansas: $858 per year, which is $46 less than our overall pick and 31% less than the statewide average cost. We're also a fan of Farmers' online tools. Getting a quote online is straightforward, and Farmers' website is easy to navigate.
Farmers' customer service reviews and financial stability kept it from being our top pick. It has an NAIC complaint index of 0.39, which is higher than our main recommendation — though still well below the national average score. It also has an "A" financial stability rating, which isn't as high as Travelers' "A++". A.M. Best still ranks an "A" as "excellent," though.
Best for military families: USAA
For members of the military and their families, we recommend USAA home insurance. The company has slightly lower than average prices, with a typical price of $1,191 per year, but what sets it apart are its unmatched customer satisfaction and military-specific benefits.
USAA has a very impressive 0.15 NAIC complaint score, which puts it among the Arkansas insurance companies with the fewest complaints. It also scored a perfect 5/5 on the J.D. Power homeowners insurance satisfaction survey — one of only two companies in the nation to do so.
Since it was founded specifically to meet the needs of members of the armed forces, USAA has some coverage benefits that may make it especially appealing to servicemembers. For example, USAA's personal property coverages apply worldwide, even in warzones. Most home insurance policies exclude warzones. Plus, if you make a claim on your uniform while on active duty, USAA will waive your deductible.
The biggest downside to USAA is that it's only available to certain people. You can only buy a home insurance policy from USAA if you have served in the U.S. military; or, if you're the direct family member of someone who has had a USAA insurance policy.
The best-reviewed homeowners insurance companies in Arkansas
When looking for homeowners insurance, we always recommend that you look for the best combination of price, customer service and financial stability. With that in mind, here are three of the most important ways we measure a home insurer's quality.
|Insurer||NAIC complaint index||J.D. Power homeowners survey score||A.M. Best financial stability rating|
|Farm Bureau Mutual Ins of AR||0.11||--||A-|
|Auto-Owners Insurance Co||0.21||4/5||A++|
|United Home Insurance Co||0.46||--||--|
A company's NAIC complaint index shows how many complaints it's received relative to how big it is. A lower number is better, and the national average score is 1.0
The J.D. Power home insurance survey asks homeowners about their overall level of satisfaction with their homeowners insurance company. The highest possible score is 5/5. And not all insurance companies are reviewed.
An A.M. Best financial stability rating is a ranking of an insurance company's financial strength. A high score indicates that a company has good financial practices and would be more likely to withstand a large number of insurance claims (like from a natural disaster) or bad economic climate.
The cheapest options for homeowners insurance in Arkansas
Home insurance in Arkansas can be very expensive, so it's essential to shop around for an affordable price. We've found the cheapest options for home insurance in Arkansas, which are well below the average cost of home insurance.
We found that Farmers Insurance offered the best price for homeowners insurance in Arkansas, with a statewide average cost of $858. That's 31% less expensive than the average price among home insurance companies in Arkansas.
Common homeowners insurance perils in Arkansas
As a state in the southern portion of the U.S., Arkansas' most common home insurance perils relate to tornadoes and other seasonal storms. For example, Arkansas is among the more tornado-prone states in the U.S., with 33 tornadoes registered in the state in 2018. For the most part, the damage these storms do to your home are covered by standard home insurance, with one major exception: flooding.
Is wind damage covered by homeowners insurance?
Wind damage is a very common cause of homeowners insurance claims in Arkansas, and fortunately it's almost always covered by homeowners insurance. Wind damage is one of the named insurance perils that appears on the majority of insurance policies. This is true whether the wind damages your home directly, such as by tearing shingles off your roof, or if it causes damage indirectly by knocking a tree onto your house.
Is flooding damage covered by homeowners insurance?
Flood damage is an increasing concern for Arkansas homeowners, especially those who live near a major river. For example, 2019 was the worst year for Arkansas River flooding in three decades.
Unfortunately, flooding is almost never covered by standard homeowners insurance. If your home is at risk of flooding, you'll need to buy a separate flood insurance policy to protect your property.
There are two main types of flood insurance: policies sold through the National Flood Insurance Program (NFIP), which are backed by the federal government; and totally private policies sold and backed by insurance companies.
The main differences between the two policy types are that nearly everyone is eligible for NFIP-backed flood insurance, regardless of flood risk. However, there's a strict waiting period of 30 days, and you can only buy up to $250,000 of dwelling coverage. Private insurance policies offer more flexibility when it comes to coverage limits and waiting periods, but homes at high risk of flood damage may be denied coverage.
Arkansas insurance rates: City-by-city breakdown
In addition to a comprehensive look at the cost of home insurance in Arkansas overall, we also did a detailed look at insurance costs by city. Below, take a look at the costs of home insurance for all the major cities in Arkansas along with how they compare to the statewide average annual price of $1,250.
|Name||Average annual cost||% difference from statewide average|
|Hot Springs Village||$1,163||-7.0%|
|North Little Rock||$1,221||-2.3%|
Differences in the average rate for home insurance aren't limited to Arkansas. To understand this, take a look at how much homeowners pay on their insurance premiums across the country.
We collected home insurance quotes from 10 of the largest insurance companies in Arkansas for every ZIP code in the state, in order to determine which company offers the best rates. Our sample home insurance profile was for a 2,000-square-foot home built in 1983, with $125,800 of dwelling coverage.
We collected quotes from the following insurers:
- Auto-Owners Insurance Co
- Farm Bureau Mutual Ins of AR
- State Auto
- State Farm