Insurance rates in Arkansas are expected to increase in 2024 due, in part, to the loss insurance companies sustained from the March 2023 tornado.
The Arkansas Insurance Department sent a letter to the Arkansas Legislative Council last month informing them that property insurance rates for personal and commercial coverage would be increasing. Storm-related claim expenses are a major factor for that increase.
As of Dec. 31, insurers had reportedly paid over $489 million in claims related to the March tornado and other severe weather events.
In the letter, the insurance department stated that all Arkansans would likely see some type of increase in 2024. However, if storm damage is minimized and other inflationary pressures are reduced, improvement could be seen in 2025.
A spokesperson for the Arkansas Insurance Department said consumers may want to consider their options such as selecting a different insurance company, increasing their deductible, or making their own repairs if the damage is minor.
