Insurance companies calculate home insurance costs according to how valuable your property is and how likely it is that something bad will happen to it.
The higher the probability that a damaging event will affect your house or personal property, the more expensive your home insurance policy will be. We call these potential damaging events risks or exposures. Let’s take a look at how risky Arkansas is compared to the rest of the US.
The bad news is that the overall burglary rate in Arkansas is significantly higher than the national average. This can have a negative influence on your home insurance rates, particularly if your house is located in a high-crime ZIP code.
- Average number of burglaries per 1,000 homes in the US: 3.76
- Average number of burglaries per 1,000 homes in AR: 6.37
There are ways to keep your costs manageable. Many insurance companies offer policy discounts if you have a burglar alarm, deadbolt locks, and other security features installed in your home.
Severe weather events, like tornadoes and hail, can wreak havoc on residential properties in this state. Be sure that your home insurance provides all the coverage you need before disaster strikes.
- Number of federally declared disasters in AR since 1953: 78
- Most common causes of disasters in the state: Severe storms, floods, and tornadoes
- Average number of tornadoes per year in the state: 38.2
- Amount paid in home insurance claims in AR in 2016: $550,629,000
Keep in mind that while most disasters are covered by homeowners insurance, flood damage is not. A local independent agent can help you supplement your homeowners insurance coverage with an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
The size of your home can affect your home insurance rates since larger homes tend to have more personal property inside them. The estimated cost to rebuild your home will also play a large role in how much your home insurance costs.
In Arkansas, the average home value is lower than the national average. However, in many of this state’s larger cities and their suburbs, properties values tend to be a bit higher.
- Average home value in the US: $188,900
- Average home value in AR: $128,500
For help determining how much coverage you need for your house, you can consult a local independent insurance agent.