Property insurance has always been a crucial part of running a rental business, but this year’s changes are reshaping how Arkansas landlords manage risk. In Jonesboro, rising costs, revised underwriting standards, and new documentation requirements mean landlords need to be more proactive than ever. The right coverage decisions can help stabilize your returns, protect your assets, and prepare your rentals for the unexpected.
If you’re reviewing your rental portfolio for 2025, it’s a good time to revisit your insurance strategy along with your rental property budgeting plan to keep everything aligned with your financial goals.
Key Takeaways
- 2025 policy updates require stronger property documentation and inspections.
- Deductible types and coverage options now vary more across carriers.
- Costs are rising due to construction inflation and higher claim activity.
- Landlords with clear maintenance records qualify for better renewal terms.
- Partnering with experts simplifies renewals, claims, and coverage reviews.
What’s Changing for Landlord Insurance in 2025
The Arkansas Department of Insurance has introduced updates intended to strengthen the state’s property insurance market and prevent sharp premium fluctuations. For Jonesboro landlords, this means policy reviews will be more detailed, and insurers will expect clearer proof of upkeep and compliance.
Stricter Documentation Requirements
Insurance carriers now require landlords to maintain recent inspection reports, roof certifications, and repair logs. These records prove that your property meets structural and safety standards. Without them, renewals can be delayed or denied.
Incentives for Mitigation Upgrades
Properties with storm-resistant features, such as metal roofing, reinforced doors, or upgraded windows, may qualify for lower premiums or deductible reductions. Even smaller improvements like gutter guards and surge protection systems can strengthen your underwriting profile.
Clarified Policy Conversions
If you convert your home into a rental, you must switch from a homeowner’s policy to a landlord or dwelling fire policy. Continuing with a personal coverage plan could void claims after a tenant-related loss.
Why Insurance Premiums Are Rising
While Arkansas doesn’t face coastal hurricane risks, insurers across the region are adjusting rates due to severe storms, tornadoes, and construction inflation. Understanding what drives costs helps landlords plan ahead and protect profitability.
Weather and Reinsurance Costs
Recent tornado activity in Northeast Arkansas has pushed insurers to pay more for reinsurance (insurance for insurance companies). These costs trickle down to policyholders, especially those with older or unreinforced structures.
Construction and Material Inflation
With building costs up 15 to 25 percent in some areas, coverage based on replacement value (not market value) has become more expensive. Higher repair and material prices automatically increase the insured value of a property—and its premium.
Aging Homes
Jonesboro’s rental inventory includes many homes built before 1990. Older roofs, wiring, or HVAC systems often require policy surcharges or conditional renewals. Landlords who document maintenance and upgrades tend to receive better pricing.
Litigation and Risk Adjustment
Recent legal reforms have improved stability, but insurers remain cautious. Expect continued audits, especially for multi-unit properties or portfolios with multiple claims in the past five years.
Deductibles: The Fine Print That Matters
Deductibles have become one of the most important parts of landlord insurance. They determine how much you pay before coverage activates and can significantly impact cash flow.
Percentage-Based Deductibles
Many policies now calculate deductibles as a percentage of your insured property value. For example, a $250,000 rental with a 2 percent deductible means a $5,000 cost per covered claim.
Named-Peril vs. All-Peril
Some carriers separate deductibles by event type. “Named-peril” applies only to specific disasters like wind or hail, while “all-peril” covers general events like fire or theft. Review which type your policy uses before renewal season.
Cost Management Tip
Build a reserve fund that can handle at least one deductible for each property. Landlords with strong cash reserves often qualify for higher deductibles, which reduce annual premiums without increasing risk.
Liability Coverage for Tenant and Property Incidents
Liability protection for landlords is evolving. Carriers are updating limits, exclusions, and reporting requirements to better reflect tenant-related claims.
- Higher Limits: Multi-unit or high-traffic properties may need larger base limits, often starting at $500,000 or $1 million.
- Maintenance Documentation: Insurers expect proof of timely repairs and safety inspections, especially for issues like flooring, handrails, and common areas.
- Endorsements: Short-term rentals or furnished units often require special policy endorsements.
For additional guidance, review these tenant screening strategies to lower liability risks before leases even begin.
How Insurers Evaluate Older Rental Properties
Older homes can still perform well as rentals, but insurers are paying closer attention to their structural details. Before renewal, landlords should prepare a full property profile.
Key Inspection Areas
- Roof age and condition (most carriers set limits between 10–20 years).
- Electrical system type (aluminum wiring often requires documentation or updates).
- Plumbing material and leak history.
- Foundation and exterior drainage condition.
Upgrade Incentives
Energy-efficient appliances, new HVAC systems, and storm-resistant roofing not only cut operating costs but also improve underwriting results. Regular updates can lead to better coverage options and lower long-term premiums.
Maintenance Logs
Keep digital records of every repair or service call. This helps resolve claims faster and demonstrates consistent upkeep—something insurers value highly.
Income Protection Through Loss of Rent Coverage
A single storm or fire can interrupt cash flow for months. Loss of rent coverage ensures that income continues while repairs are underway.
Benefits for Landlords
- Keeps rental income flowing during restoration periods.
- Covers mortgage and tax obligations even when tenants vacate.
- Stabilizes cash flow and protects owner equity.
Review your policy’s coverage duration—some only cover a few months, while others extend up to a year. A property management partner can help verify that your policy’s limits align with realistic repair timelines.
Managing Claims and Renewals the Smart Way
Renewals and claims can become stressful if handled reactively. A clear annual routine keeps everything organized and compliant.
Before Renewal
- Schedule a walkthrough and take updated photos of your property.
- Review deductibles, exclusions, and new coverage rules.
- Send your insurer an updated inspection report and maintenance summary.
During a Claim
- Secure the property immediately to prevent further damage.
- Notify your insurer and provide photo evidence within 24 hours.
- Keep all receipts and communication in a shared file for easy tracking.
Timely action often leads to quicker settlements and reduced disputes.
Partnering with a Local Property Manager
PMI Imagine NEA helps landlords streamline insurance and risk management through organized documentation, maintenance coordination, and tenant communication. Their local team understands Jonesboro’s market conditions, weather patterns, and insurer requirements.
Services include:
- Coordinating inspections and compliance reports.
- Managing tenant safety checks and maintenance records.
- Tracking renewal deadlines to prevent policy lapses.
- Helping landlords navigate loss of rent claims.
With professional support, landlords spend less time sorting through paperwork and more time building profitable rental portfolios.
Building a Reliable Insurance and Risk Plan
Insurance is part of your long-term investment structure, not a one-time decision. Keeping your property updated, your documentation organized, and your budget balanced ensures your coverage works when you need it most.
For an even broader risk-reduction plan, read about common landlord-tenant disputes and how to prevent them through clear policies and proactive communication.
Strong Coverage Starts with Strong Management
A well-structured insurance plan protects more than your property—it safeguards your financial stability. Whether it’s a storm claim or a routine renewal, staying informed and organized makes every step easier.
PMI Imagine NEA specializes in helping Jonesboro landlords maintain protection, manage documentation, and handle claims efficiently. To explore how they can help simplify your property coverage strategy, reach out through PMI Imagine NEA’s contact page and connect with a local expert who understands both the market and your goals.
FAQs
Can I use a homeowner’s policy for my Jonesboro rental property?
No. Once you rent your home, you’ll need landlord insurance. A homeowner’s policy doesn’t cover tenant-related damages or liability, which could leave you unprotected in a claim.
How often should I review my insurance coverage?
At least once a year. Markets change, and costs rise. Reviewing your policy ensures your deductible, coverage limits, and replacement value still make sense for your property’s age and upgrades.
Do landlord insurance premiums qualify as business expenses?
Yes. Insurance costs and certain mitigation improvements are typically tax-deductible. Always verify details with your CPA or tax professional to ensure proper reporting.
What happens if my rental property sits vacant?
Most insurers reduce or suspend certain coverages after 30–60 days of vacancy. Ask your agent about vacancy endorsements to maintain protection during longer transitions.
Is loss of rent coverage worth adding?
Yes, especially in storm-prone regions. It ensures that your cash flow continues if a covered event forces tenants to move out while repairs are completed, helping you stay financially secure.
