Whether you rent an apartment in Little Rock or you lease a townhome in Hot Springs, there are many great rental communities in the state of Arkansas. Unfortunately, many who lease their homes do not realize the importance of having renters insurance until it is too late and the damage is done.
Local independent agents are available to help you find a great renters insurance policy. These agents can explain your various insurance options and can shop around to find the coverage you want at a price you can afford. Find an insurance agent near you to get started.
Rental Statistics in Arkansas
According to the US Census:
- Around 34.4% of all homes in Arkansas are occupied by renters.
- The average amount paid for rent in this state is $745 a month.
- An estimated 38.6% of renters in this state spend more than 30% of their income on rent and utilities.
How Much Does Renters Insurance Cost in Arkansas?
Renters insurance is typically very affordable. In Arkansas, the average cost of a policy is just $212 a year. That is less than $18 a month to cover your personal property against loss or damage.
Of course, this is just an average. The price you will actually be expected to pay may be a bit higher or lower than this amount depending on a few factors.
- Where you live: Homes in neighborhoods with high crime rates or significant weather risks will typically be more expensive to insure than homes in low-risk areas.
- The amount of coverage you need: If you have $30,000 worth of personal property to cover, your quote will likely be higher than for someone who has only $10,000 worth of belongings.
- The type of property coverage you choose: When covering your personal property, you have two options from which to choose — actual cash value or replacement cost coverage.
- Actual cash value (ACV): This type of reimbursement takes depreciation into account. For example, if your 10-year-old TV is destroyed by a fire, your insurance company will only reimburse you for its actual depreciated value.
- Replacement cost (RC): This type of reimbursement ignores depreciation. In the same example, your insurance company would reimburse you the cost it takes to purchase a brand new TV with a comparable screen size to the one you lost.
- Your claims history and credit score: If you have made a lot of insurance claims in the past or if your credit score is less than desirable, you are likely to see a slight increase in your rates.
- Your deductible: While a higher deductible may yield a lower quote, be sure the deductible you choose is one you can comfortably afford to pay should you need to file a claim.
Comparing rates from a few competing insurance providers enables you to choose the policy that offers you the coverage you want at the best value.
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What Does Renters Insurance Cover in Arkansas?
You can expect your renters insurance policy to provide you with the following types of coverage.
- Personal liability coverage: Also referred to as "renters liability coverage," this can shield you from costs related to lawsuits and can can cover obligatory expenses if you unintentionally cause injuries, property damage, or financial losses to others. It can pay for the following costs.
- Court costs
- Legal defense fees
- Mediation costs
- Other related expenses
- Personal property coverage: Also referred to called "contents coverage," this can pay to repair or replace your personal belongings if they are lost or damaged by a covered event like the following.
- Property crimes, including burglary and vandalism
- Fires, including accidental fires, wildfires, and arson
- Hurricanes and tropical storms (but not the flooding that they may cause)
- Other severe storms, including thunderstorms, windstorms, and microbursts
- Alternate living coverage: Also referred to as "loss of use insurance," this can provide coverage if your rental home is severely damaged by a covered event and you need to seek alternate housing while repairs are made. It can pay for the following.
- Hotel or temporary housing costs
- Meals, if your accommodations do not include a kitchen
- Extra mileage if you have to drive further to get to and from work
- Storage costs if you have to put your property in temporary storage
- Pet boarding fees, if needed
How Can Arkansas Renters Get Coverage against Floods?
The property coverage included in your renters insurance policy is pretty comprehensive, but it doesn't cover everything. Specifically, your policy will not cover against flood damage. Unfortunately, floods cause nearly $5 billion worth of property damage in this state every year.
If you are renting an apartment on the second floor or higher, you probably don't have to worry about flood damage, but if you are renting a house or a ground floor unit and it is located in a flood-prone area, you may want to give seriously consideration to buying flood insurance.
Policies are available through the National Flood Insurance Program (NFIP). Renters can purchase a contents-only policy that will cover their personal property at a very affordable price.
How Can I Get the Best Renters Insurance in Arkansas?
The last thing you want to think about when disaster strikes is whether or not you can afford to replace the things you own. A comprehensive renters insurance policy can give you peace of mind so you can focus on finding safety instead of worrying about how you're going to handle your finances.
Local independent agents are available to help you with all of your insurance coverage needs. These experienced agents can offer guidance and advice and can quickly provide you with a variety of customized quotes. That way, you can be sure you are getting your policy at a competitive price.
Talk with a local independent agent to find out how you can obtain a renters insurance policy that meets your coverage and budgetary needs.
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