Arkansas Rental Property Insurance in 2026

Landlord Insurance in Arkansas (AR)

Landlord Insurance Pricing in Arkansas

How Much Does Landlord Insurance Cost in Arkansas?

Compare Rental Property Insurance in Arkansas

All Landlord Insurance Providers in Arkansas (AR)

Finding the right insurance provider is one of the most important steps to protecting your investment. Compare options as coverage, rates and qualification requirements can vary significantly.

	Obie	Steadily	Honeycomb	NREIG
Most Suitable For	New and growing investors who want fast, fully online coverage	Tech-forward landlords, strong on short-term / Airbnb rentals	Multifamily, apartment buildings, and condo / HOA associations	Active investors, BRRRR and flips, and portfolios needing flexible coverage
Property Types	SFR, multifamily, apartments, condos, STR	SFR, multifamily, condos, STR / vacation, ADUs	SFR, multifamily, condos, STR / vacation, ADUs	SFR up to 20-unit, condos, mobile homes, vacation rentals, mixed-use
Coverage Types	Fire and smoke, Lightning, Windstorm and hail, Explosion, Vandalism, Theft, Water, Legal liability, Loss of rent	Fire, Legal liability, Loss of rent, Riot and civil commotion, Storm and hail, Vandalism and burglary, Water	Fire, Lightning, Windstorm and hail, Vandalism, Civil commotion, Theft, Water, Legal liability, Loss of rent	Fire, Lightning, Windstorm and hail, Vandalism, Theft, Water, Legal liability, Loss of rent
Optional Add-Ons	Water backup, equipment breakdown, vandalism, special hazard	Select endorsements; flood and earthquake typically excluded	Core-focused; limited specialized endorsements	Broad suite: flood, earthquake, equipment breakdown, terrorism, tenant protection
Claims Handling	Handled by the underwriting carrier; Obie assists	In-house on Steadily-issued policies; otherwise via partner carrier	Handled directly by Honeycomb as the insurer	NREIG acts as liaison; carrier / third-party administrator decides claims
Overview & Review	Obie Review	Steadily Review	Honeycomb Review	NREIG Review

Who is the Best Landlord Insurance Provider in Arkansas (AR)?

Popular Cities in Arkansas for Landlord Insurance

How Does Location Within Arkansas Affect Rental Property Insurance Premiums?

Landlord insurance premiums in Arkansas track severe-weather exposure across the state. Little Rock and central Arkansas sit in an active tornado corridor, Northwest Arkansas markets like Fayetteville, Rogers, and Bentonville generate frequent hail claims, and Jonesboro and the northeast add flood exposure along with proximity to the New Madrid Seismic Zone. Insurers commonly apply separate wind/hail deductibles statewide.

Finding the Best Rental Property Insurance in Arkansas

How to Find the Best Rental Property Insurance in Arkansas?

We’ve created a step-by-step guide designed for rental property investing that helps landlords secure coverage to protect both their property and rental income.

1. Determine Your Coverage Needs

Evaluate your property’s replacement cost, liability risks, rental income loss potential, and Arkansas-specific hazards.

2. Calculate True Cost of Coverage

To research rental property insurance costs in Arkansas, start with rental property calculators and then look for landlord-specific discounts like multi-property policies, claims-free history, and security systems.

3. Identify Providers Specializing in Rental Properties

Find insurers experienced with Arkansas investment properties who offer flexible vacancy terms, strong loss of rent coverage, and have positive landlord reviews.

4. Compare Quotes with Identical Coverage

Get quotes from at least 3-5 providers with matching coverage limits and speak with agents who can find rental property discounts unavailable online.

5. Review Policy Details and Finalize Coverage

Examine vacancy clauses, rental-use exclusions, tenant damage procedures, and confirm your liability limits protect your assets before signing.

Rental Property Insurance Risks in Arkansas

What are the Insurance Risks for Rental Properties in Arkansas?

Arkansas sits at the intersection of Tornado Alley and Dixie Alley, and its rental properties face frequent tornadoes, heavy hail, and, in the northeast, exposure to the New Madrid Seismic Zone, a mix that makes deductible structure and excluded perils central to policy selection.

Tornadoes

Arkansas averages dozens of tornadoes annually across both spring and fall seasons, and events like the March 2023 Little Rock EF3 show the exposure runs straight through the state’s largest rental markets. Tornado wind damage is covered under standard policies, but many Arkansas insurers now apply separate wind/hail deductibles of 1% to 2% of dwelling coverage.

Hail

Northwest Arkansas and the central corridor see damaging hail most springs, and repeated roof claims have pushed many Arkansas insurers toward percentage wind/hail deductibles and roof-age underwriting. Landlords should document roof replacements, ask about impact-resistant shingle credits, and confirm whether older roofs are settled at replacement cost or actual cash value.

Earthquakes (New Madrid Seismic Zone)

Northeast Arkansas lies within the New Madrid Seismic Zone, one of the most active earthquake zones east of the Rockies. Earthquake damage is excluded from every standard landlord policy, so owners around Jonesboro and the northeast counties should price a separate earthquake endorsement, particularly for masonry and multifamily buildings.

Flood Damage: Not Covered by Standard Policies

Arkansas carries serious river flood exposure, demonstrated by the 2019 Arkansas River flood that inundated communities from Fort Smith to Little Rock, alongside flash flooding in the Ozark valleys. Standard landlord insurance policies exclude flood damage in every state. Landlords in flood-prone areas should consider a separate flood policy through the National Flood Insurance Program (NFIP) or a private flood insurer.

DP-1 vs DP-3: Which Landlord Policy Form Is Best?

Landlord insurance policies in Arkansas are typically written on one of two dwelling fire forms: DP-1 or DP-3. A DP-1 policy is the most basic and least expensive option, covering only a short list of named perils (such as fire and lightning) and paying claims at actual cash value, meaning depreciation is subtracted from every payout. A DP-3 policy is the standard choice for most rental property investors: it covers all perils except those specifically excluded, pays at replacement cost, and typically includes loss of rental income coverage.

For most landlords, the premium difference between DP-1 and DP-3 is small relative to the gap in protection, making DP-3 the better value for any property in decent condition. DP-1 is generally reserved for vacant properties, older homes that don’t qualify for DP-3, or owners insuring only against catastrophic loss.

	DP-1	DP-3
Perils covered	Named perils only (9–10 basic)	Open perils (all except exclusions)
Claim payout	Actual cash value (depreciated)	Replacement cost
Loss of rent coverage	Rarely included	Typically included
Best for	Vacant or lower-value properties	Most tenant-occupied rentals
Relative cost	Lowest	Moderate

Arkansas Real Estate Investor Resources

Arkansas Landlord Insurance FAQ

Is Landlord Insurance Required by Law in Arkansas?

No. Arkansas law does not require landlords to carry insurance on rental properties. However, if the property has a mortgage, the lender will almost always require a landlord (dwelling fire) policy as a condition of the loan, and operating without coverage leaves the owner personally exposed to property losses and liability claims.

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How Much is Landlord Insurance in Arkansas?

The average cost of landlord insurance in Arkansas is $2,931 per year, which is roughly 9% below the national average. Actual premiums vary based on property location, age, construction type, coverage limits, deductibles, and claims history

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Can a Landlord Require Renters Insurance in Arkansas?

Yes. Arkansas landlords may require renters insurance as a lease condition, and it is a common practice in a state with frequent tornado and hail activity. The tenant’s policy covers their personal property and liability, which keeps tenant losses from becoming claims against the landlord’s policy after a storm.

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Does landlord insurance cover tornado damage in Arkansas?

Yes. Tornado wind damage is a covered peril under standard Arkansas landlord policies, including both DP-1 and DP-3 forms. However, many Arkansas insurers now apply a separate wind/hail deductible of 1% to 2% of dwelling coverage rather than the flat policy deductible, so landlords should check their declarations page and calculate what that percentage means in actual dollars for each property.

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Is Landlord Insurance Tax Deductible?

Yes. Landlord insurance premiums are a fully deductible operating expense for rental property owners, reported on Schedule E for individually owned properties. See our guide to Arkansas rental property taxes for a full breakdown of deductible expenses.

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