Homeowner insurance coverage in Arkansas is ranked No. 17 among the average insurance rates in the United States, with annual premiums approximately $802.
A part of the Midwest states, Arkansas experiences its share of natural disasters that could cause devastation to homes and personal belongings.
Just the high cost of repairs and rebuilding a home is already a tremendous financial burden, so it would be in the best interests of residents to apply for homeowner insurance or condo insurance in Arkansas.
There are many factors that every resident should consider when applying for homeowner insurance in the state of Arkansas. First, one should take into consideration the location of the property and the risks that are associated with living in that place.
For example, homes located in neighborhoods with high crime rates means higher premiums. Secondly, certain parts of Arkansas seem to be prone to tornadoes, and this again means higher insurance rates.
Of all natural perils, it is tornadoes that pose the greatest threat to life and property in Arkansas. The over 100-mile per hour wind speeds are capable of devastating several homes within minutes. Some tornadoes may carry with it heavy rains, so flooding may also occur.
A standard homeowner insurance plan in Arkansas consists of the following…
· Property Damage – Provides money to cover damages to the home resulting from basic perils such as fire, lightning, hail or explosions. Tornado damage is specifically listed in the policy as “wind” or “windstorm”. Excluded from his coverage is protection from damage caused by floods.
· Contents Insurance – Provides protection to personal property that may be damaged or stolen like appliances, clothing, jewelry, and electronic equipment.
· Additional Living Expense – Provides much needed funds for the homeowner and his/her family in the event that they need to live temporarily elsewhere (like in a motel or an apartment) while their home is being repaired or rebuilt. This also covers food and clothing.
· Personal Liability – This coverage provides protection against lawsuits or claims (some coverage may include attorney’s fees) resulting from bodily injury or property damage deemed by the court as the responsibility of the homeowner.
There is a maximum limit to this coverage, however. Once the limit has been reached, the homeowner will shoulder the additional expenses out of his own pocket.
· Medical Expenses – Covers the medical expenses of individuals who have sustained injuries on the homeowners property. This particular coverage excludes injuries suffered by the homeowner and members of his/her family.
As mentioned earlier, flooding resulting from tornadoes is excluded from the standard policy. One should get flood coverage as an odd-on to the basic policy or acquire a separate policy from the National Flood Insurance Program.
Because of the history of disasters in the state, the key to getting the best homeowner insurance in Arkansas is to be sure that the policy contains extensive coverage. Besides, one could still get good coverage at an affordable price by availing of discounts.
While this extensive coverage may be expensive, the added protection is vital in safeguarding the homeowner’s greatest investment, namely the home.