Why is Home Insurance Expensive in the Ark-La-Tex?

Whether you have lived here awhile or consider yourself new to the area, the Ark-La-Tex region is known for its rich history, with many historical landmarks and sites throughout the area.

With plenty of outdoor recreation opportunities, from fishing and camping to hiking and biking trails, the area has something for everyone.

The Ark-La-Tex region is a four-state area comprising Arkansas, Louisiana, and Texas. It has a combined population of over 14 million people and encompasses an area covering just under 200,000 square miles.

For all of its benefits, one challenge we have in this area is the cost of homeowners insurance policies.

Why is Home Insurance Expensive in this Area?

Home insurance can be expensive in the Ark-La-Tex, but why?

From natural disasters to an aging housing stock, there are a number of factors that can contribute to the rising costs of standard policies for home insurance in this area.

Let’s take a look at some of the contributing factors and explore how you can save money on your home insurance policy in the Ark-La-Tex.

Natural Disasters

Natural disasters such as floods, tornadoes, and hurricanes can cause significant damage to homes in the Ark-La-Tex region.

We tend to see hail that looks like ice-baseballs crashing down on our roofs and cars.

In recent years, there have been several major storms that have impacted the area and caused the need for a lot of roof repairs. Water damages, major roof repairs, hail damage to windows and siding, like a box of chocolates, you never know what you may get!

As a result, insurance companies often charge higher premiums for residents in areas that are prone to natural disasters. This is especially true if your home is located in a floodplain or near a river that could overflow during a storm.

Age of the Housing Stock

The Ark-La-Tex region has an aging housing stock, which can make it more susceptible to damage from natural disasters and wear and tear over time.

Many homes in this area were built prior to modern building codes, meaning they may lack certain protections that newer homes have.

This can lead to higher home insurance costs for residents of the area.

Why? The cost to rebuild or repair these homes includes bringing them up to current building codes, which can be more expensive than repairing a newer home.

When you make a claim (and pay your deductible), your insurance adjuster will certainly take that into account.

Crime Rates

Another contributing factor to the high cost of homeowners insurance in the Ark-La-Tex region is crime rates.

The greater risk of theft or damage to property the higher the insurance premium. This can include everything from vandalism and burglary to arson and other types of property.

Unfortunately, some areas within the Ark-La-Tex have a high crime rate, and in this case, some bad apples do spoil the whole bunch when it comes to causing higher insurance premiums in the area.

Lack of Insurance Competition

The lack of insurance competition in the Ark-La-Tex region can also lead to higher insurance rates for standard policies. Without a wide variety of insurers competing for your business, you may not get the best deal on your policy.

You also may not get the best advice. You may have an agent advise you to go for an actual cash value stipulation in your policy instead of full-replacement cost for roof repairs.

Depending on where you live in the Ark-La-Tex, you may have several options or sometimes just one or two.

That’s why it proves important to know technology allows an independent insurance agency like Watley Insurance Group to help you get beyond the limited local options while still serving you like a neighboring agency with great insurance coverage and premium options.

Prior claims and Coverage Selections

Lastly, prior claims and coverage selections can also impact the cost of home insurance in the Ark-La-Tex. If you have a history of making claims on your policy, this could make you a higher risk for insurers and result in higher premiums.

Additionally, if you select higher coverage limits or add-ons such as flood insurance or an umbrella policy, this will increase the cost of your home insurance policy.

In conclusion, there are several factors that contribute to the high cost of home insurance in the Ark-La-Tex region. These include natural disasters, aging housing stock, crime rates, lack of insurance competition, and prior claims and coverage selections. It’s important to work with an independent insurance agency like Watley Insurance Group to find the best coverage options and premiums for your specific needs in this region. By understanding these factors and working with a knowledgeable agent, you can ensure that you have adequate home insurance coverage without overspending on premiums.

Why is Home Insurance Expensive in the Ark-La-Tex?

How Do I Save Money on Home Insurance in the Ark-La-Tex?

Even though home insurance can be expensive in this region, there are still ways you can save money. Shopping around for the best deal without sacrificing insurance coverage benefits is one of the easiest ways to lower your premiums.

You can also take steps to make your home more resistant to natural disasters, such as installing storm shutters or flood barriers. Additionally, raising your deductible can also help reduce your insurance costs.

Other ways to save money on home insurance in the Ark-La-Tex include bundling your policies with one insurer, maintaining a good credit score, and taking advantage of discounts offered by insurers. For example, some insurers offer discounts for installing security systems or fire alarms in your home.

It’s also important to review your policy regularly and make sure you’re not over-insured. You may be able to lower your premiums by adjusting your coverage levels and removing unnecessary coverage.

Educating Yourself

Taking the time to educate yourself on home insurance is another great way to save money in the Ark-La-Tex. Knowing what coverage you need and understanding how different factors can affect your premiums can help you find the best policy for your needs.

Additionally, many insurance companies offer discounts for homeowners who have taken measures to make their homes safer, such as installing smoke detectors or burglar alarms.

Finding the right home insurance policy in the Ark-La-Tex region doesn’t have to be a challenge.

By understanding the factors that can contribute to higher premiums and taking steps to protect your home, you can find an affordable policy that meets your needs.

You may even learn that you sit underinsured, e.g., do you have enough coverage for roof repairs in the event you need a full replacement after a bad storm, and need additional homeowners’ insurance coverages to have proper protection.

Working with an Independent Insurance Agent

Working with an experienced, independent insurance agent can be a great way to save money on your home insurance in the Ark-La-Tex region.

As an independent insurance agency, we have access to multiple insurers and can help you find the best policy for your needs at the lowest rate available.

We can also provide guidance on how to make your home safer, so you may qualify for additional discounts.

Plus, our experienced agent can help you file a claim, e.g., a claim for roof repairs, if the worst should happen.

Yes, home insurance can be expensive in the Ark-La-Tex region, but there are steps you can take to save money on your policy.

By understanding the factors that contribute to higher premiums, taking steps to make your home safer, and shopping around for the best coverage for the best price, you can find an affordable policy that meets your needs.

When shopping around, don’t hesitate to reach out to the fine folks here at Watley Insurance Group.

We have called Shreveport, a major city in the Ark-La-Tex area, home for years (and have seen quite a few roof repairs ourselves). We would love to help you with your home insurance coverage benefits or any other insurance solutions you need.

Wayne F. Watley, Jr.

Agency Principal, proud husband & father, and jazz enthusiast.