Average Home Insurance Cost in Arkansas
According to NAICS, Arkansas ranks number 14 for the home insurance cost by state. Average annual premium for home insurance is $1312. Actual cost will vary based on several factors including your credit score, neighborhood, the type of home and the property size. Other factors also include the age of plumbing and wiring, anti fire and anti theft systems install on the property. It can be significantly higher or lower. For most of the people, home is their largest asset and they heavily rely on it for their retirement. For some this is the only way to save money for the retirement. It is always good to have a higher coverage to protect your assets and savings.
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Best Home Insurance Companies in Arkansas
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Home Insurance Rate Factors in Arkansas
Several factors can impact your home insurance rate. Below is the discussion of a few of them.
Insurance companies love to bundle car, home and business policies or at least car and home. You can save up to 45% if you have a multi-property and/or a car and home policy together.
Your insurance rate may vary by the zip code you live in even within the same city. Several factors including crime rate, demographics, local climate and risk for natural disasters in Arkansas can impact your insurance rates.
Home age, plumbing and wiring age, and saftey features such as a sprinkler system and anti-theft alarm can significantly impact your insurance rates.
If you have filed claims in the last three years against your home insurance you are likely to pay a higher premium. While it may seem unfair, insurance companies would like you to file claims only for the bigger expenses so that the premiums can be kept low.
home insurance companies treat a credit score as a responsibility indicator. They assume that higher the credit score, more responsible the home insurance policy owner is and less likely they will file a claim. Therefore, home insurance policy owners with higher credit scores are rewarded with lower preimums.
Insurance companies consider married individuals as lower risk individuals compared to those who are single. Therefore, if you are married you are likely to enjoy better insurance rates than those who are single. Yes, there are other perks of being married besides the companionship. Couples who are not legally married but have been living together for a long time may also enjoy lower insuance premiums.
Comparison shopping for home insurance is as important as it is to do for any other product or service. Home insurance buyers shall compare insurance quotes from at least 3 to 5 insurance agent before buying or renewing a policy. If you have been with the same insurance company for the last few years then it may be worth looking at a different one as insurers increase rates every year and loyalty rarely saves you any money. Normally, you should look for a newer policy every 18 to 36 months. Switching too soon e.g. every 6 months can hurt your insurance score thus costing you higher. If you were forced by a lender to buy insurance from a particular company at the time of purchase you should switch to a newer company that is likely to have lower insurance rates.
While shopping for home insurance online can be fun, it may not be the most economical insurance policy available. Talking to an insurance agent can put some extra dollars in your pocket. Experienced insurance agents are usually aware of the hidden insurance discounts that you may not be able to find online.
Your deductible may also dictate your insurance rate. If you are a financially responsible individual, then you can go for a higher deductible amount. For example, instead of $500 going for $1000 can easily reduce your monthly premium by 10% or so. However, if you decide to go this route then you should keep the deductible money in your rainy day funds. Just in case you need it.
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Home Accident and Death Numbers
People tend to take home insurance and the work around the property very lightly. However, it is very critical to understand that incidents happened on your property may not be covered by other insurance policies. According to the National Safety Council in 2015, 74,600 people died and 20,700,000 were injured at home. Poisioning, falls, choking, fire, flames, smoke and drownin were respoinsible for a large number of cases with falls being the leading factor for hospitalization. It cost insurance companies $254.7 billion nationwide. None of these injuries may be covered by your primary health insurance.
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Other Risks of Not Buying Home Insurance
You can face several consequences if you fail to buy the right type of home insurance. Below is the discussion of a few of them.
If you have borrowed money to purchase home your lender will require you to maintain an insurance policy. Either your lender will ask you to provide proof of insurance every year or your insurance company will directly send it to them since the lender has a lean on on your home. A lender can force you into a foreclosure if you fail to maitain a home policy per their requirements.
If an extended family member, friend or a visitor gets hurt while at your home, you are responsible for all expenses related to their medical, compensation and funeral costs in an event of their death. Unless you have several hundered million dollars in the bank, a good home insurance policy is the only way for you to cover all these expenses.
Personal Medical Expenses
If you or one of your family members get injured at home and require medical attention or a hospital visit, your primary medical insurance may refuse to pay for the treatment. The home insurance policy will cover you for it. Same will happen in case of an accidental death.
Fire & Theft
Home owners see fire and incidents of theft nationwide almost every day. Replacement costs of the building and stolen items can run int several thousand dollars. The ony way to pay for it is through a good home policy.
Home can be completely destroyed by a naturual disaster such as an earthquake, flood or tornado. The only way to rebuild or buy another home is if your insurance company pays for it. Otherwise you can be left with no place to live.
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