Spring is the perfect time to review your home insurance, especially with Arkansas's unpredictable weather risks like hailstorms, flooding, and tornadoes. Here’s what you need to focus on:
- Storm Damage Coverage: Check for wind/hail deductibles and roof age rules (ACV vs. RCV).
- Home Improvements: Update your policy for renovations like new roofs, storm windows, or outdoor structures.
- Insurance Costs: Consider higher deductibles or bundling home and auto insurance to save on premiums.
- Flood Insurance: Standard policies don’t cover floods; evaluate your risk and secure NFIP coverage.
- Provider Review: Verify your insurer's stability and claims-handling history.
- Extra Coverage: Add endorsements for outdoor items or umbrella liability protection.
Quick Tip: Document your home’s condition with photos, keep receipts, and consult your agent to ensure your policy aligns with your needs.
Checking your home insurance before spring floods
1. Storm Damage Coverage Limits
Recent changes to Arkansas insurance regulations are impacting storm damage claims, especially for homeowners with roofs older than seven years. These updates could mean higher repair costs for many.
Arkansas Insurance Policy Changes
The Arkansas Insurance Department has introduced new rules that alter storm coverage terms. Jimmy Harris, Compliance Director at the Arkansas Insurance Department, explains:
"Insurers in Arkansas can now require a separate deductible for wind and hail damage and broaden the timeframe an actual cash value settlement (ACV) endorsement for wind/hail damaged roofs could be added to a homeowner's policy." [1]
In 2023, Arkansas insurers paid $1.66 for every dollar collected in premiums [1], which sheds light on why these changes are happening. Key updates include:
- 7-Year ACV Rule: For roofs older than seven years, insurers may only offer an ACV settlement. This reduces the amount reimbursed for replacement costs.
- Separate Wind/Hail Deductibles: Policies may now include distinct deductibles for wind and hail damage, meaning higher out-of-pocket costs for homeowners.
- Act 471 (2023): Insurers are now required to notify policyholders if percentage-based deductibles apply.
These updates are reshaping how roof and exterior damages are covered this spring.
Roof and Exterior Protection
Given these policy updates, it’s a good idea to review your roof and exterior coverage. Standard homeowners' policies usually include tornado damage under windstorm coverage. Coverage typically applies to:
- Repairs for roofs, walls, and foundations damaged by wind, hail, or tornadoes
- Damage caused by fallen trees during windstorms
It’s also important to understand the difference between RCV (replacement cost value), which covers the cost of new materials, and ACV (actual cash value), which accounts for depreciation.
Keep in mind that standard policies don’t cover flood damage, even if a tornado contributes to it [2]. To prepare for storm season, document your home’s condition with photos or videos and save all repair receipts for any claims you may need to file.
2. Home Improvement Coverage Updates
Spring renovations and upgrades for weather protection can directly influence your home insurance needs. Even smaller updates can increase your property's value and may require adjustments to your policy.
Home Value Changes
Lucas Hamilton from CertainTeed / Saint-Gobain North America highlights the importance of using proper underlayments and housewraps when installing new roofs and siding designed to handle extreme weather conditions [5].
Here are some common upgrades that could impact your insurance:
According to the 2024 Remodeling Magazine's Cost vs. Value Report, kitchen remodels can recover over 70% of their cost, while bathroom upgrades can return up to 95% [6]. New additions to your home, such as extra rooms or outdoor structures, also require a reassessment of your insurance coverage.
New Structure Coverage
Adding features like storm shelters, reinforced decks, or weather-resistant outbuildings means it's time to revisit your policy. Jessica Gibson, Insurance Contributor, advises:
"Be sure to let your insurance company know when you have done any type of work to your home so that it can perform a post-renovation valuation to accurately determine your new coverage needs." [6]
To ensure your new structures are properly covered:
- Take photos, keep receipts, and schedule a professional valuation with your insurer.
- Explore coverage options tailored to specialized structures.
- Look into additional endorsements for weather-related risks.
When installing outdoor features, prioritize non-combustible materials and Class-A flame-spread materials to enhance safety [5]. These upgrades not only improve protection but may also qualify for insurance discounts, provided your policy reflects the changes.
3. Insurance Costs and Deductibles
Spring weather risks are driving up home insurance costs in Arkansas. Finding the right balance between coverage and affordability is key for preparing your home this season.
Deductible Options
Choosing a higher deductible can reduce your premiums, but it requires careful consideration. Here’s how deductibles impact costs for a $300K dwelling with $100K liability coverage:
Advanced tools like tree score ratings are also influencing premiums. These scores assess the risk based on how close trees are to your home, which can impact coverage costs.
"The original insurance companies were mutual societies where people would pay in and hope that they weren't the subject of a hurricane, tornado, or hail damage... So it was really a cooperative risk pooling, literally, operation." [1]
In Arkansas, the average home insurance premium is $4,023, which is $1,600 higher than the national average [9]. Credit scores also play a major role: homeowners with poor credit pay an average of $10,896 annually, while those with excellent credit pay just $2,356 [9].
4. Flood Insurance Needs
Spring flooding poses a serious threat to Arkansas homes, and standard insurance policies don’t cover flood damage. It’s crucial to evaluate your local risks and secure the right coverage now.
Understanding Local Flood Risks
FEMA’s Flood Insurance Rate Maps (FIRMs) provide detailed insights into flood risks in your area. Homes in Special Flood Hazard Areas (SFHAs) face a 26% chance of flooding during a 30-year mortgage [3].
“Nobody ever thinks it's going to be their house. You always hope for the best and prepare for the worst." - Jeff Baugh, Houston homeowner and NFIP policyholder [14]
Unpredictable spring flooding in Arkansas emphasizes the importance of preparation. For example, in February 2025, water levels in the Black River Flood Prone Region surpassed 11 feet, closing the area and disrupting local activities [11].
With these risks in mind, let’s break down what flood insurance covers.
Flood Insurance Coverage
NFIP policies provide protection for:
Key points to consider:
- 30-day waiting period: NFIP policies require a waiting period before coverage takes effect [13] [14].
- Moderate to low-risk claims: Over 20% of flood claims come from areas with moderate to low risk [12].
- Where to buy: Policies are available through local insurance agents or at FloodSmart.gov [13].
Flood damage is three times more likely than fire damage during the life of a mortgage. Arkansas homeowners should take action this spring to ensure they’re protected [15].
5. Insurance Company Review
Spring is a great time to take a closer look at your insurance provider's stability and service quality. With the season's unique challenges in mind, it's important to ensure your insurer is as reliable as your updated coverage. This step goes hand in hand with preparing your home for potential risks.
Checking Company Stability
Independent financial strength ratings can help you gauge an insurer's ability to handle claims effectively.
When evaluating an insurance company, focus on these key aspects:
- Look for a company with at least 50 years of experience and strong ratings from agencies like A.M. Best.
- Check how well the insurer has handled spring storm claims in the past.
- Contact the Arkansas Insurance Department at 800-282-9134 to check for complaints or licensing concerns.
"Financial Stability Ratings ® (FSRs) are a leading indicator of the financial stability of an insurer." – Demotech, Inc. [16]
It's worth noting that hail and wind damage make up nearly 40% of homeowners insurance claims, with average payouts reaching $12,913 [17].
Martin Agency Services
If you prefer local support, agencies like Martin Agency in Pocahontas, AR, offer several advantages. This family-owned business stands out with:
- Tailored Coverage: Policies designed to address Arkansas-specific weather risks.
- Local Knowledge: A solid understanding of regional storm patterns and claims processes.
- Community Focus: Active participation in local events and initiatives.
"At Martin Agency, we understand the importance of personalized service. As a family-owned and operated independent insurance agency, we deliver personalized care to Pocahontas, AR residents and nearby communities. With us, you're not just a policy number, you're a valued member of our Arkansas area." – Martin Agency [18]
6. Extra Coverage Types
Beyond the standard coverage options, there are additional protections you might want to explore. Spring often brings unique risks, and these extra options can help address gaps in your standard home insurance.
Umbrella Insurance: Added Liability Protection
Personal umbrella insurance provides an extra layer of liability coverage that standard policies don’t include. Typically offered in increments of $1 million, this type of policy can help protect your assets in situations involving major liability claims, such as auto accidents, dog bites, or slip-and-fall incidents [19]. It’s a smart way to expand your liability protection and safeguard your financial future [19].
Protecting Outdoor Property
Spring weather can be tough on outdoor items like furniture and grills. While standard insurance may cover some basics, additional protection for items like patio furniture, grills, and landscaping is often necessary. For instance, weatherproof covers for patio furniture are widely available [22], and investing in high-quality grill covers is highly recommended.
"Daniel Shaffer emphasizes choosing a grill cover that fits well, ventilates properly, and offers durability" [23].
To better protect your outdoor investments, consider these steps:
- Use security upgrades for outdoor areas [20].
- Opt for furniture made with powder-coated metal and weather-resistant fabrics [21].
- Purchase professional-grade covers with rip-stop features, which offer significantly better tear resistance than standard vinyl [23].
"I was never a huge fan of grill covers until I got a good one. Only then did I realize how beneficial they are to protecting your investment" [23].
Adding riders to your policy can cover high-risk outdoor items like grills, patio furniture, and landscaping. Pair this with practical measures, like durable covers and security improvements, to keep your outdoor spaces safe and well-maintained.
Conclusion: Spring Insurance Checklist
With Arkansas's unpredictable weather, reviewing and updating your insurance policy is more important than ever. Recent payout ratios highlight the need for thorough coverage assessments [1].
Here are six key areas to focus on during your review:
- Storm Damage Coverage
Review your policy for separate deductibles for wind and hail damage. If your roof is over seven years old, check if actual cash value (ACV) settlements apply [1]. - Home Improvements
Document any renovations and confirm that your policy reflects current rebuilding costs. As Sean Kevelighan, CEO of Triple-I, advises:
"As a homeowner, the best place to start your insurance review process is by reading the declarations page of your policy" [24].
- Manage Costs
Arkansas premiums are 75% higher than the national average. Look into bundling options and consider higher deductibles to reduce costs [8]. - Flood Protection
"Everyone lives in a flood zone. The question is whether it is a high-risk or a moderate- to low-risk zone" [25].
Use FEMA's flood maps to evaluate your risk and ensure you have proper flood coverage.
- Insurance Provider Review
Assess your insurer's financial stability and service history. As noted:
"Uncertainty about what kind of catastrophes are going to occur, where they will occur, and how much they'll cost to repair... and so if those expectations don't come to pass then the insurance companies can find themselves in a real bind" [1].
- Additional Coverage
Think about adding endorsements for high-value items or extended replacement coverage to better safeguard your property.
These steps address the challenges posed by Arkansas's changing weather patterns. Consult Martin Agency agent to fill any coverage gaps and explore potential discounts [8].
