2.1 Arkansas Homeowners Insurance
Key Takeaways
- Arkansas homeowners policies follow standard ISO forms with state-specific endorsements
- The state requires specific disclosures for hurricane and windstorm coverage
- Replacement cost coverage is standard for dwellings in most policies
- Arkansas law protects consumers with prompt payment and claims handling requirements
- Flood insurance is not included and must be purchased separately through NFIP or private insurers
Arkansas follows national homeowners insurance standards with state-specific requirements.
Standard Policy Forms
HO-3 Special Form (Most Common)
| Coverage | Type | Typical Limit |
|---|---|---|
| A - Dwelling | Special (all-risk) | Replacement cost |
| B - Other Structures | Special | 10% of A |
| C - Personal Property | Named perils | 50-75% of A |
| D - Loss of Use | ALE | 20-30% of A |
| E - Liability | Occurrence | $100,000 - $500,000 |
| F - Medical Payments | No-fault | $1,000 - $5,000 |
Arkansas-Specific Requirements
Claims Handling
- Acknowledge claims within 15 days
- Begin investigation within 30 days
- Settle or deny within reasonable time
- Pay interest on delayed payments
Windstorm Coverage
- Special disclosure for windstorm exclusions
- Percentage deductibles must be clearly explained
- Separate acknowledgment required
Exam Tip: Arkansas requires insurers to handle claims promptly and communicate clearly with policyholders throughout the claims process.
Exam Focus
For Arkansas Homeowners Insurance, connect coverage parts to real property losses. Homeowners questions often mix dwelling coverage, other structures, personal property, loss of use, liability, deductibles, and exclusions such as flood or earth movement. For state-specific questions, pay attention to notices, underwriting restrictions, cancellation or nonrenewal rules, and claim-handling expectations. When a scenario describes storm, theft, fire, or liability facts, identify the damaged property first, then decide whether the policy form, endorsement, or exclusion controls the answer.
Within how many days must Arkansas insurers acknowledge receipt of a homeowners insurance claim?