Are you adequately protecting one of your greatest assets—your home? Choose the right home insurance policy for your needs with Obrella—an online platform that allows you to connect with Arkansas home insurance agents quickly and easily. Agents can take care of everything over the phone from explaining your options to answering your questions to even binding your policy once you’ve made your selection. Selecting a home insurance policy doesn’t have to be a hassle with us.
What do the homeowners in Arkansas pay?
The typical U.S. homeowner spends $1,034 per year on homeowners insurance. Arkansas homeowners spend $1,095, which ranks the state as having 15th highest average insurance premiums in the country.
Median Home Value: 122,100
Household Income: 44,922
% of Income on Home Ownership: 24.70%
In the U.S., 63.5% of homes are owner occupied and the median value of these homes is $176,700. At65.7%, Arkansas has a slightly higher rate of owner occupied housing, but the typical house is valued 40%less, at $107,300. When compared to the national norm, Arkansas’ $40,511 median household income is$12,000 less, but residents also spend less of their income on home ownership expenses. Nationally,31.6% of household income goes toward housing costs; in Arkansas that figure is 24.7%.
Homeownership comes with a lot of responsibility, including having adequate home insurance coverage. If you want to be sure your Arkansas home is protected by the most comprehensive and competitively priced policy, call and talk with an insurance professional who can run a home insurance comparison.
How are home insurance premiums determined in Arkansas?
Insurance companies calculate the cost of your home insurance policy by considering various factors. These factors include everything from the size and age of your home to neighborhood housing prices and crime rates. Premiums can also be affected by the likelihood of natural disasters such as tornadoes, floods, and earthquakes. Even things like your credit score and whether or not you have a swimming pool or a guest house on your property may affect the cost of your insurance premiums.
What can be deduced from these details? They all relate to risk. If your insurance provider determines that these factors make your home riskier to insure, you’ll probably end up spending more for your homeowners insurance policy. Thankfully, you can take action to lower these risks. Making your home more secure is a good start. Installing a complete home security system, for example, means your home is less likely to be burglarized, lowering the chance that your insurance company will have to replace stolen items. Even installing motion-sensitive lights and surveillance cameras can lower your risk and therefore your premium.
What does homeowners insurance cover in Arkansas?
Most Arkansas home insurance companies offer a range of coverage options; some of which are defined below:
- HO-1: Limited Coverage
- While an HO-1 policy will cover your home in the event of the first 10 classified disasters—fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption—this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- If any of the 16 classified disasters causes damage to your home, an HO-2 policy will give you basic protection.
- HO-3: Standard, most popular
- With very few exceptions, this standard policy offers the most extensive home protection.
- HO-8: Older Home
- To protect against depreciation, this policy will usually reimburse homeowners for damage on an actual cash value basis, though some older homes may not qualify for full replacement cost policies.
What is covered by standard Arkansas homeowners insurance?
Many people think insurance is a one-size-fits-all safety net. The truth is that you will only be reimbursed if the damages to your home are the result of a situation specifically stated in your insurance policy. If your home is damaged by a flood, for instance, but your policy does not cover flooding, your insurance company will not pay for any damages to your home. Below are common home insurance coverage definitions to help you navigate the specifics of your policy:
- Coverage A – Dwelling
- Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
- Coverage B – Other Structures
- Tool sheds, free-standing garages, fences, guest homes, and other non-attached structures are covered under Other Structures.
- Coverage C – Personal Property
- Personal Property coverage reimburses homeowners for the value of damaged, lost, or stolen belongings, including furniture, clothing, computers, and TVs. This coverage even extends to items that were not lost, stolen, or damaged on the homeowner’s property—such as items in a storage unit.
- Coverage D – Loss of Use
- Loss of Use coverage reimburses the homeowner for living expenses during home repairs.
- Coverage E – Personal Liability
- If found legally liable for injuries that occurred on their property, a homeowner can use their Personal Liability coverage, which will cover the homeowner’s financial loss.
- Coverage F – Medical Payments to Others
- Covers medical bills for individuals hurt on a homeowner’s property or by the homeowner’s pet.
Arkansas Insurance Resources
Arkansas Insurance Department: A consumer protection agency dedicated to assisting you with questions about insurance and insurance companies. The department also offers you access to a wealth of educational resources and materials through InsureUonline. The Arkansas Insurance Department is located at:
With so many options for home insurance, it can be downright overwhelming to try to find the perfect policy for your needs. Fortunately, you have Obrella. With one simple phone call, you can get in touch with an experienced insurance agent, who will help answer all of your home insurance questions. They’ll determine your coverage needs, help you review different policies, and discuss your options with you. They can even take care of binding your policy over the phone! Shopping for home insurance shouldn’t be an ordeal, so trust us to help you find what you need easily.
To talk to a Arkansas-licensed insurance professional about your home insurance policy options, call today at [mapi-phone-link /].
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!