Home insurance in Arkansas costs about $384 monthly or $4,607 annually on average. Homeowners pay $164 more per month, or $1,972 more annually, than the national average, making it the fifth most expensive state for home insurance.
Average Home Insurance Cost in Arkansas
Updated: May 30, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Jun 13, 2025
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Key Takeaways
Home insurance costs in Arkansas range from $4,087 per year to well over $33,093, depending on your financial history, home details, chosen coverage, and provider.
Arkansas' home insurance premiums are the fifth most expensive in the country, at 75% over the national average.
To find the best home insurance in Arkansas, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in Arkansas?
| Arkansas Average | $384 | $4,607 | 75% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200,000 Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Arkansas?
Home insurance is expensive in Arkansas mainly due to the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Arkansas homeowners make more claims than the average. The Insurance Information Institute reports that in 2023, the state recorded one of the lowest total incurred insurance losses (claim value) in the country, at 6.4 billion dollars, which may lead insurance costs to lower.
High Weather Risks
Due to Arkansas's location in Tornado Alley and vulnerability to severe weather systems, the likelihood of expensive claims is significantly higher. In 2024, weather-related risks were dominated by tornadoes, severe thunderstorms with damaging hail, and flash flooding, with the state's geography making it particularly susceptible to supercell storms that can cause widespread property damage across both rural and urban areas.
Rising Material and Labor Costs
Construction costs accounted for a record 64% of new home prices in 2024, up from around 61% in 2022, according to the National Association of Home Builders' (NAHB) latest survey. Since 2020, wages for construction workers have risen by 35%, raising the cost of damages. These factors contribute to higher claims costs for insurers.
State Insurance Laws
Home insurance is required if you're getting a mortgage, and with the state's frequent severe weather events driving up premiums, some residents in high-risk areas face affordability challenges that can limit their coverage options. This creates a concentrated risk pool where insurers must balance adequate coverage with the financial realities of insuring properties in tornado and storm-prone regions of Arkansas.
What Affects Arkansas Home Insurance Costs?
For most home insurance companies, pricing is affected by these factors:
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
Here's how each factor impacts rates in Arkansas.
How Much Does Coverage Affect Home Insurance Costs?
Coverage choice is the most influential factor in Arkansas home insurance rates, with costs ranging from $2,285 to $14,709 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $190 | $2,285 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $1,226 | $14,709 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the second most influential factor in Arkansas homeowners insurance rates, ranging from $152 to $395 per month. These factors affect replacement costs and the risk of damage or theft, leading to significant rate differences.
| Lowest | New | Superior | Tile | $152 | $1,827 |
| Highest | Old | Frame | Shake-Treated | $395 | $4,740 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the third most influential factor in Arkansas home insurance rates, with prices ranging from 37% below to 151% above the state average. Picking the right provider can make a substantial difference in your costs, so shop smart and compare offers.
| Lowest | State Farm | $229 | $2,750 |
| Highest | Travelers | $919 | $11,032 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 75%, with annual average rates ranging from $2,607 to $11,780.
| Lowest | Excellent | $217 | $2,607 |
| Highest | Poor | $982 | $11,780 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk to insurers, which can increase premiums. However, in Arkansas, claims history has a smaller impact on cost than other factors. Depending on your claims history, rates can vary by up to 13% or $691 annually.
| Lowest | Claim free for 5+ years | $366 | $4,395 |
| Highest | 2 claims in past 5 years | $488 | $5,861 |
Tips to Save on Arkansas Home Insurance
With high home insurance costs in Arkansas, finding ways to save on premiums is important. Explore your options whether you're buying a new home or want to cut current expenses. Below are tips to help you secure the best and cheapest home insurance in Arkansas tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to focus your search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To make sure you get the best rates, understand the average costs for you and your home. Also, inquire about all available home insurance discounts, as some insurers apply certain reductions only if requested.
- 3
Compare Multiple Providers Through Different Avenues
Compare various insurers to find the best coverage for your needs. Use methods such as online comparison sites, brokers, provider websites, and agents, as quotes can differ significantly across these platforms.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings. For example, combining home and auto insurance in Arkansas can save you 19% on auto insurance and 35% on home insurance.
- 5
Reduce Your Personal Risk Profile
To secure cheaper premiums on your home, consider making improvements like adding storm shutters or security systems. Boosting your credit score can substantially lower your insurance payments. Transitioning from a fair to a good credit score can save you 28% on average.
Arkansas Home Insurance Calculator: Bottom Line
Home insurance costs vary mainly due to coverage level and home details. To find affordable rates, research your coverage needs and compare average costs, then shop around using our estimate tool to secure the best deal.
Homeowners Calculator Insurance Arkansas: FAQ
The cost of homeowners insurance in Arkansas depends on several factors. To help you estimate your expenses, MoneyGeek answers common questions below about home insurance in the state.
How much does homeowners insurance cost in Arkansas?
Arkansas's average monthly home insurance cost is $384 for a dwelling coverage of $250,000. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the replacement cost of their home, often with help from an appraiser. While this study uses a baseline coverage of $250,000, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your chosen coverage level and provider. Your credit score and home details also influence your rates.
How We Determined Our Arkansas Home Insurance Estimates
When determining the average cost of home insurance in Arkansas, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.