Arkansas Homeowners Pay Some of the Lowest Insurance Costs In The Country

Homeowners in Arkansas continue to pay some of the lowest premiums in the nation, even as insurance costs climb across much of the U.S.

Data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that while states along the Gulf and Atlantic coasts are experiencing skyrocketing bills, Arkansas households still benefit from relative affordability.

Arkansas’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Arkansas homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowner’s insurance, while those without a mortgage average $1,000–$1,499. Overall, the state’s costs fall in the $1,000–$1,499 range.

Arkansas has 836,697 insured homeowner households in total—438,657 with a mortgage and 398,124 without. Among mortgaged owners, 47,175 pay less than $100 annually and 19,890 pay $4,000 or more. Among those without a mortgage, 112,628 pay less than $100 and 15,843 pay $4,000 or more.

When compared to nearby states, Arkansas stands out as relatively affordable. In Louisiana, homeowners with a mortgage typically pay $2,000–$2,499, while those without a mortgage average $1,000–$1,499.

Texas is even higher: mortgage holders also spend $2,000–$2,499 annually, with similar figures for those without. Mississippi and Missouri, by contrast, look more like Arkansas, with most homeowners paying in the $1,000–$1,499 range.

Climate Risks Across the Region

Even with relatively low costs, Arkansas is not immune to severe weather risks. The Realtor.com 2025 Climate Risk Report emphasizes that high-risk, lower-value markets across the South bear the heaviest insurance burdens. Florida and Louisiana dominate the rankings of unaffordable premiums, with Miami homeowners paying an average of $22,718 annually, or 3.7% of the median home value. Cape Coral, Sarasota, and Tampa also rank among the highest-burden markets.

Arkansas does not appear in the top metros for extreme flood, hurricane, or wildfire risk, which helps explain its lower premiums. Still, the state experiences frequent severe storms and tornadoes. These events can drive localized insurance claims, even if they don’t show up in national climate risk rankings.

Insurance Affordability A National Concern

Nationwide, the affordability of homeowners insurance has become a pressing issue. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe insurance could soon become unaffordable, while nearly half said they have already faced difficulties obtaining or renewing coverage.

Premium hikes are also shaping how buyers approach the market. Nearly 30% of current homebuyers said they have changed the geographic area they are searching in due to insurance challenges, while nearly a quarter said they had completely overhauled their homebuying strategy. The financial strain is even pushing some toward riskier decisions: 58% of homeowners said they would consider dropping insurance altogether if costs rose too high, with younger generations more likely to go uninsured.

For Arkansas, insurance costs remain lower than many nearby states, giving homeowners a cushion against these national pressures. But as climate risks intensify across the South, even relatively affordable states may not remain immune from higher premiums in the future.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.