Landlord Insurance in Arkansas: Costs, Requirements & Best Providers

Why Arkansas rentals cost so much to cover

At $4,955, Arkansas’s homeowners benchmark is close to twice the national average. A landlord (DP-3) policy on the same $400,000 house would start somewhere around $5,700 to $6,200. Most Arkansas rentals are worth less than that benchmark home, so your premium may come in under it, but the state still prices high for the same reason every year: roofs.

Tornadoes cross the whole state, from the Fort Smith area to the Delta. The March 2023 tornado that tore through west Little Rock was a reminder that cities aren’t spared. Hail, straight-line wind and winter ice storms add to the claims, and roof claims are the most expensive line for insurers here.

How wind and hail deductibles work in Arkansas

Many Arkansas policies split the deductible. Fire, theft and water claims use a flat deductible, often $1,000 or $2,500. Wind and hail claims use a separate one, frequently 1% or 2% of the dwelling limit.

Dwelling limit	1% wind/hail deductible	2% wind/hail deductible
$150,000	$1,500	$3,000
$250,000	$2,500	$5,000

Some policies also pay roof claims at actual cash value once the roof passes a certain age, which means you get the depreciated value of an old roof, not the cost of a new one. Read the roof section of every quote.

Ice storms and trees

Ice storms bring down limbs and whole trees. Damage to the building from a falling tree is generally covered, but tree removal coverage is usually capped at a small amount. If your rental has big oaks near the roofline, a trim every few years is cheaper than the deductible.

Floods and the New Madrid corner

Flood is excluded from landlord policies. The Arkansas River flood of 2019 hit homes along the river from Fort Smith to Pine Bluff, and flash flooding in the Ozarks can damage properties far from any mapped zone. Lenders require flood insurance in FEMA special flood hazard areas, through the National Flood Insurance Program or a private insurer.

Northeast Arkansas sits near the New Madrid Seismic Zone. Earthquake is excluded from standard policies, and in Craighead or Mississippi County an endorsement is worth a quote.

What lenders want

Lenders typically require dwelling coverage at least equal to the loan or the rebuild cost, wind and hail included, the lender named as mortgagee, and flood coverage in a mapped zone. Investment-property lenders often want loss-of-rent coverage as well.

Five ways to bring the premium down

1. Re-roof with Class 4 impact-resistant shingles and ask each insurer for its discount.
2. Pick a wind and hail deductible you can pay from savings, not one that looks cheap on the quote.
3. Trim trees away from the roof and report a recent roof replacement date on the application.
4. Bundle several rentals with one carrier; Obie writes portfolio policies with blanket limits.
5. Require tenants to carry renters insurance so their belongings and many tenant-caused claims stay off your policy.

Arkansas deposit rules and your exposure

Arkansas caps deposits at two months’ rent, but the cap does not apply to landlords who own five or fewer units unless a third party manages them. You return the deposit with an itemized list of deductions within 60 days after termination, and wrongful withholding can cost twice the amount (Ark. Code Ann. §§ 18-16-303 to 18-16-306). Check the current statute before relying on the small-landlord exemption. Arkansas law doesn’t set an entry-notice period we could confirm, so put one in your lease for roof and storm inspections.