renters insurance is $197 per year. A renters insurance policy typically offers financial protection for damage to or loss of personal possessions, any loss of use to your living space due to a covered incident, personal liability, and medical expenses if someone gets injured on the property.

Firstly, we want to congratulate you on looking into renters insurance. You’re a responsible renter and you deserve a pat on the back. Arkansas renters insurance is pretty affordable, and it offers you both legal and financial protection.

Ready? Here’s what you need to know about how

renters insurance

works, how to build a policy, and how to find the lowest price. This guide was assembled by

Jerry

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What is renters insurance?

This is a type of insurance for renters that offers a variety of financial and legal protection. Homeowners have a separate type of policy (your landlord probably has one). However, those policies may not cover the renter or their personal belongings.

Here are some coverages in a typical renters insurance policy:

Property coverage (Coverage C): This insurance covers the actual cash value (ACV) or replacement cost of your belongings if they’re destroyed by a covered peril.

Loss of use coverage (Coverage D): Also known as additional living expenses (ALE) coverage, this part of your policy pays for living expenses, like a hotel room or food delivery, incurred as a result of damage to your property.

Personal liability (Coverage E): If someone else is injured or their property is damaged in your home, your personal liability insurance will cover any amount you’re legally required to pay, including court and attorney fees.

Medical payments (Coverage F): This coverage pays for any medical expenses when someone is injured on your property.

How much coverage do you need? A good first step is to inventory your possessions. Think about the items that may need replacement in the event of unexpected damage, such as a computer, furniture, or art. Keep in mind that your landlord may require that you carry a certain level of coverage, too.

What does renters insurance cover?

Insurance policies cover only named perils. Anything not specifically named in your policy will probably not be covered. Read your policy closely—every company has a slightly different standard policy.

Here are the perils that most renters insurance policies cover:

Fire

Theft

Frozen plumbing

Windstorm

Vandalism

Hail

Lightning

Impact by a vehicle

Falling objects

Explosion

Standard policies vary by state, too. Some states face a higher risk of floods or tornadoes, for example, so the baseline policy doesn’t include it.

In a state like Arkansas, flooding is not usually a covered peril since floods are so common. If you are worried about a specific threat, read your policy to see if it is specifically named.

You can still get coverage for floods or tornado damage but you may need to buy separate policies.

What does renters insurance not cover?

Renters insurance covers a lot of things in your home—but it doesn’t cover everything. Here are a few items not normally covered:

Work-related items: From Cricut machines to your work laptop, any items associated with a business are not usually covered by a renters policy. If you need to insure professional tools, you may need a separate policy.

Valuables: Collectibles, fancy jewelry, and other valuable items are not normally covered by renters insurance. Your grandma’s brooch and your first-edition Harry Potter books probably aren’t covered.

Your car: Your car is not covered by a renters policy, even if it’s parked in your rented garage or a rented parking spot. You will need

car insurance

to protect your vehicle.

MORE:

Arkansas minimum car insurance laws

Key Takeaway: With a renters insurance policy, you get both financial protection and legal protection for one low monthly fee.

Is renters insurance required in Arkansas?

Renters insurance is not required by law in Arkansas. However, tenants can be required by their landlords to carry a renters policy with a certain level of coverage.

Even if you are not legally compelled to carry renters insurance, you should still consider taking out a policy. Otherwise, you have zero protection if your home burns down—and you will have to pay out-of-pocket if someone has an accident on your property and sues you.

While Arkansas renters pay slightly more than the national average for renters insurance, it’s still a fairly affordable rate. The average annual payment in this state is $197 per year or just over $16 per month. That’s pretty low for a policy that will pay out thousands of dollars for a covered incident!

Whether you’re worried about major disasters (like fires) or minor disasters (like an over-excitable puppy), it’s easy to protect yourself with renters insurance.

How to build an Arkansas renters insurance policy

The first step to building your policy is to write down information about each item that needs protection. Go room by room and note the following information for your electronics, furniture, appliances, and art:

Quantity

Purchase date

Purchase price

Brand number

Serial number (if available)

Next, take pictures of every item. Submitting a claim to your insurance company is much easier when you have photos along with text descriptions.

Now, select a personal liability limit. It will probably be around $300,000. This is the maximum amount of money that the company must pay on a covered peril. Note that landlords can require a certain threshold.

Finally, confirm whether or not floods are covered. In some parts of Arkansas, a separate policy is required for flooding. If it is not included (but you still want protection), ask about purchasing a separate policy on top of your renters insurance.

Actual cash value vs. replacement cost

Before you commit to a policy, there’s one more thing you need to know. This one’s important!

Your Arkansas renters insurance policy will cover either actual cash value (ACV) or replacement cost. ACV is the current market value of the items that were lost, whereas replacement cost covers the fee to replace them with a comparable item.

Here’s an example. Let’s say you bought a brand new set of living room furniture several years ago for $1,500. Your rented home catches on fire and destroys the furniture.

An ACV policy will only cover what that furniture is currently worth after depreciation. If your pets and kids have been jumping around on it—and it’s now several years outdated—your insurance payment might only give you $500.

A replacement policy will cover the full original price to help you purchase new furniture of comparable quality. The coverage is better with this policy, but you have to pay more for it.

Think carefully about what kind of protection you need before you commit to a policy.

MORE:

What does actual cash value coverage mean on insurance?

How to find cheap renters and car insurance

It’s exhausting to hunt for discounts…if you do it all by yourself. Luckily, it’s easy to get help from the experts.

The smartest way to unlock cheaper renters insurance is to bundle your

renters insurance

with your car insurance policy. Most companies are happy to offer serious discounts for bundling (we’re talking 15 to 25% off both policies!).

Another way to find a good deal is to use the

Jerry

app. Jerry automatically helps you qualify for discounts and the entire research process takes less than a minute. Just enter your zip code and the kind of coverage you need. Jerry will help you sign up (or switch providers) if you find an awesome rate.

Cheap insurance, here you come!

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Is renters insurance worth it?

Yes, most of the time. Renters insurance is a pretty affordable monthly payment, and it offers wide-ranging coverage for both property and personal liability.

What is the average cost of renters insurance in Arkansas?

Rates change every year. However, Arkansas renters can expect to pay about $197 per year for a renters insurance policy.

You could save 15% or more on renters insurance by bundling

Bundle your renters and auto insurance with Jerry and save!

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