Best Cheap Home Insurance in Arkansas 2022 – Forbes Advisor

0

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Getting affordable home insurance is a priority for many homeowners. Comparative shopping with multiple companies is the best way to find the coverage you need at a reasonable cost. We’ve evaluated the average rates of some of Arkansas’ leading home insurance companies to help you find cheap home insurance.

Comparison of Cheap Home Insurance Costs in Arkansas

Related: Best Home Insurance Companies

Home insurance cost factors

Your ability to get reasonable rates on Arkansas home insurance will depend on several factors, such as:

  • The amount of coverage and the limits you choose for your policy
  • The amount of the deductible you have chosen
  • The materials your home is made of
  • The age of your house
  • Expenses to rebuild your house at today’s cost
  • The fire classification of the location of your house
  • Your home’s loss history
  • Your personal claims history
  • Your credit
  • Your location

Related: 10 Ways To Get Cheap Home Insurance

What does home insurance cover?

Your typical Arkansas home insurance policy (called HO-3) protects your home against any issues that are not excluded in the policy. Common exclusions from an HO-3 policy include war, nuclear hazards, power outages, earthquakes, sinkholes, wear and tear, neglect, and pest and insect infestations.

Your personal belongings are covered for specific “risks” in a standard home insurance policy. Riots, vandalism, theft, tornadoes, fires and explosions are just a few of the problems covered by home insurance.

The main areas of coverage for a standard home insurance policy include:

  • Lodging: It pays to repair or rebuild your home if it is damaged. It also covers adjoining structures, such as a patio, porch or garage.
  • Other structures: It pays to repair or replace structures not attached to your home, like a guesthouse, fence, or shed.
  • Personal property: This type of home insurance pays to repair or replace your property after a problem such as theft or fire. Your personal effects include things like your electronics, appliances, clothing, furniture, rugs, and jewelry.
  • Responsibility: This coverage covers, up to the limits of your policy, property damage and personal injury that you accidentally cause to others. For example, if you accidentally throw a soccer ball out of your neighbor’s window, your liability insurance will cover a settlement or court decision against you. The coverage also covers your legal defense costs.
  • Medical payments to third parties: This covers small injury claims made by people outside your household, regardless of the fault. For example, if a guest trips on a carpet in your home and is injured, medical coverage could cover their visit to emergency care. The coverage amounts are smaller, for example $ 1,000.
  • Additional living expenses: If you cannot live in your home due to an event covered by your policy (such as a fire), additional living expense coverage covers any additional expenses you incur, such as a hotel bill, outside meals and other necessary services, such as a pet. boarding service.

Related: How Much Home Insurance Do You Need?

What is not covered by home insurance?

Common exclusions found in a standard home insurance policy include issues such as flooding, earth movements (earthquakes, sinkholes, mudslides or mudslides), power outages, neglect, normal wear and tear, vermin, birds, rodent and insect infestations and intentional losses.

It is wise to read your policy carefully to understand what is excluded from coverage.

Most common disasters in Arkansas

Compared to several other states, Arkansas homeowners do not have a wide variety of disasters to contend with. Severe storms, floods and tornadoes have been the most common disasters reported in Arkansas in recent decades.

From April 12 to 13, 2020, Arkansas was rocked by high winds, rain and flooding. This storm system also brought tornadoes that cut a destructive path. Severe weather swept through other southern states, spawned at least 140 tornadoes, and became known as the Easter Tornado Outbreak. This event took place after an EF3 tornado hit Jonesboro, Arkansas on March 29 and nearly flattened the mall there. Tornadoes can easily cause serious damage to your home and property.

Disasters by month in Arkansas

April and May were by far the busiest months in terms of declared disasters in Arkansas.

Disasters in Arkansas by Year

Arkansas residents face an average of about two declared disasters per year. In 2020, disasters affecting the Arkansans included the Covid-19 pandemic as well as severe storms, winds and tornadoes, as well as Hurricane Laura.

Arkansas Flood Insurance

Your standard home insurance policy will not cover damage caused by flooding. And with flooding increasingly common across the country, you may want to consider flood insurance if your Arkansas property is in danger.

In June 2021, Desha County, Arkansas was hit by a severe storm that caused extensive flooding of homes and crops. More than a foot of rain fell in 24 hours, causing dangerous conditions, power outages and road closures. A state of emergency has been declared. It was just one of many flash floods that hit Arkansas in 2021.

Many areas of the United States experience destructive and costly flooding that cannot be declared a federal disaster. Here is a look at the number of recent floods in Arkansas.

Government financial assistance after a flood may be limited. It is better to have your own flood insurance. Most people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available if you shop around.

If you qualify, FEMA’s Individuals and Households (IHP) program can provide financial and direct assistance after a disaster or major emergency. This program helps people find housing after an event that is directly caused by a disaster and that is not covered by insurance or other sources.

Earthquake Insurance in Arkansas

The natural state may not be considered an earthquake hub, but Arkansas has its share. It is close enough to the New Madrid Seismic Zone (NMSZ) that the state is affected by earthquakes. In November and December 2021 alone, there were three earthquakes in northern, eastern and central Arkansas, but all were below 3.0.

Arkansas has at least hundreds of flaws, if not more. However, most earthquakes that occur in Arkansas are barely felt and cause little to no damage. The NMSZ, however, is being watched as a major shock would cause real damage to home and property there.

If you are concerned about earthquakes affecting your home and want coverage for any potential damage, you will need to purchase a separate earthquake insurance policy. A standard home insurance policy does not cover earthquakes.

Earthquake insurance generally covers:

  • Lodging
  • Personal property
  • Other structures
  • Additional living expenses

Earthquake insurance may have a separate deductible from your home insurance, typically between 10% and 25% of the housing policy limit.

Tips for buying home insurance

Whether you’re about to close your first home or thinking about switching to a new home insurance company, you want to find an affordable policy without sacrificing coverage. Here are guidelines for newcomers and longtime owners:

  • Estimate your reconstruction costs. Talk to a trusted contractor or your insurance company about what it would cost to rebuild your home with similar materials, based on labor costs in your area. You want the amount of your home cover to be at least equal to this estimate.
  • Assess the level of protection you need. Look to buy an amount that matches the value of what could be taken away from you in a lawsuit, or at least $ 300,000.
  • Consider the benefits of replacement cost instead of actual cash value. Do you want the amount you need to replace your items with new versions? If so, consider covering the replacement cost; otherwise, the actual cash value gives you a diminished value for your property.
  • Consider additional coverage for your belongings. If you have expensive goods, such as music or sports equipment or jewelry, you should consider planning personal property for those expensive goods. This way, they will be insured for their full value.
  • Look for gaps in coverage. Some home insurance companies offer additional benefits, for example, to help pay for damage caused by sewer backups. They can also provide higher landscaping limits for things like trees and specialized plants. Your standard policy limits coverage to a percentage of your home insurance amount.
  • Research financial ratings. Examine the financial strength ratings of companies such as AM Best or Standard & Poor’s. Some institutions may not offer you a mortgage unless your insurance company has at least an “A” financial strength rating.
  • Ask for discounts. Make sure you receive all the discounts that match your owner profile. For example, you can get a discount for bundling your home and auto insurance with the same company, or for being part of an alumni group or living in a gated community.
  • Compare quotes from several insurance companies. The price of the same coverage, limits and deductibles can vary considerably from one insurer to another. If you don’t shop, you won’t know how much you can potentially save.

Methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with home coverage of $ 300,000 and liability coverage of $ 100,000.

Share.

Comments are closed.