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Landlord Insurance · Northwest Arkansas

Avoid These Common Landlord Insurance Claim Mistakes in Arkansas

Owning rental property can be a great investment, but one wrong coverage decision can turn a fire, hail, water, liability, or rent-loss claim into a denied or reduced payout. Here is what Arkansas landlords need to review before the claim happens.

Cribb Insurance Group Inc Bentonville, Arkansas Updated July 2026
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Plain-English answer: The biggest landlord insurance claim mistakes in Arkansas are insuring a rental on a homeowners policy, not knowing how the roof will be paid, assuming wear and tear is covered, skipping loss-of-rent coverage, ignoring flood insurance, underinsuring the building, carrying low liability limits, failing to document property condition, reporting claims late, and using a long-term landlord policy for short-term rental activity.

Cribb Insurance Group helps Northwest Arkansas rental property owners compare landlord, dwelling fire, flood, umbrella, and short-term rental coverage across multiple carriers. We serve Bentonville, Rogers, Springdale, Fayetteville, Centerton, Bella Vista, Cave Springs, Gravette, Siloam Springs, and surrounding Arkansas communities.

Why claims go wrong

Most claim problems start before the loss

A denied landlord claim is rarely just bad luck. It usually traces back to the way the property was insured, how the roof was scheduled, what use was disclosed, whether income protection was included, and whether the owner kept documentation before damage occurred.

That is why a landlord policy review matters. A rental property is not just a house. It is a business asset, income stream, liability exposure, and rebuilding risk all wrapped into one policy.

Quick coverage check

  • Is the property on a landlord / dwelling fire policy?
  • Do you know if the roof is RCV, ACV, or scheduled?
  • Do you have loss-of-rent coverage?
  • Is flood insured separately?
  • Is short-term rental use disclosed?

The costly mistakes

10 landlord insurance claim mistakes to avoid

1

Insuring a rental on a homeowners policy

A standard homeowners policy is generally built for owner-occupied property. Once tenants move in, a claim can be reduced or denied because the use of the property changed.

Do this instead: Move tenant-occupied property to a landlord or dwelling fire policy such as DP-1, DP-2, or DP-3.
2

Not knowing how the roof will actually be paid

Many Arkansas landlords are surprised after hail or wind damage because the roof may settle at replacement cost, actual cash value, or an Agreed Roof Payment Schedule. A schedule can pay a set percentage based on roof age and material instead of full replacement cost.

Do this instead: Ask your agent exactly how your roof settles before storm season, especially on older roofs.
3

Assuming wear, tear, age, or neglect are covered

Insurance is designed for sudden and accidental losses. Gradual damage, age, deterioration, neglected maintenance, and worn-out materials can be excluded even when the damage is expensive.

Do this instead: Keep inspection records, maintenance receipts, dated photos, and repair documentation.
4

Skipping or underinsuring loss of rent

If a covered fire, water loss, or storm damage makes the rental uninhabitable, the tenant may stop paying rent while repairs are completed. Without loss-of-rent or fair rental value coverage, the missing income can become your problem.

Do this instead: Carry enough loss-of-rent coverage to match realistic repair, permitting, and rebuilding timelines.
5

Assuming flood is included

Flood is normally excluded from landlord and property policies. Creek overflow, flash flooding, and surface water can require a separate NFIP or private flood policy.

Do this instead: Review a separate flood insurance option for any rental with flood or drainage exposure.
6

Underinsuring the building

Market value and rebuild cost are not the same. If the dwelling limit is too low, the landlord may face out-of-pocket rebuilding costs or claim penalties.

Do this instead: Insure the building based on replacement cost estimates, not purchase price or tax value.
7

Ignoring ordinance-or-law coverage

Older rentals may have to meet current building codes after a covered loss. Without ordinance-or-law coverage, code-required upgrades can become an uncovered expense.

Do this instead: Ask whether ordinance-or-law coverage is included and whether the limit is enough for the property age.
8

Carrying too little liability coverage

Tenant injuries, guest injuries, unsafe steps, loose handrails, dog incidents, and maintenance-related disputes can create serious liability claims. Low limits may not protect the landlord’s assets.

Do this instead: Review higher landlord liability limits and consider a personal umbrella policy.
9

Waiting too long to report or mitigate damage

Policies require timely reporting and reasonable steps to prevent more damage. Leaving a roof open, failing to stop a leak, or delaying notice can make the claim harder.

Do this instead: Report quickly, make temporary emergency repairs, save receipts, and photograph everything.
10

Using the wrong policy for Airbnb or VRBO

A long-term landlord policy may not properly cover short-term rental, vacation rental, Airbnb, or VRBO exposure. The actual use of the property matters.

Do this instead: Tell your agent if the property is used for short-term rental, mid-term rental, furnished rental, or vacation rental.

Arkansas roof claims

Agreed Roof Payment Schedules can change the claim math

Because Arkansas sees frequent wind and hail, some carriers use Agreed Roof Payment Schedules on older roofs. This means the carrier and insured agree in advance how much of the roof replacement cost will be paid based on roof age and material.

This is different from simply saying “replacement cost” on a declarations page. A roof can also run into wear-and-tear language if the damage is tied to age, deterioration, or lack of maintenance instead of a sudden covered event.

RCVACVAgreed Roof Payment ScheduleWear & Tear ExclusionWind / Hail Deductible

Before renewal

Landlord policy review checklist

Property coverage

  • Correct landlord / dwelling fire policy form
  • Replacement cost estimate reviewed
  • Roof settlement basis confirmed
  • Ordinance-or-law coverage included
  • Flood quoted separately when needed

Income and liability

  • Loss-of-rent coverage included
  • Liability limit reviewed against assets
  • Umbrella option considered
  • Renters insurance required from tenants
  • Short-term rental use disclosed
Start a Landlord Quote → Upload Policy for AI Review

Professor Cribby answers

Landlord insurance claim FAQs

Does homeowners insurance cover a rental property in Arkansas?
Usually not. A rental should normally be insured on a landlord or dwelling fire policy, not a standard owner-occupied homeowners policy.
Why did my landlord roof claim pay less than expected?
The roof may be subject to replacement cost, actual cash value, a wind/hail deductible, or an Agreed Roof Payment Schedule. Wear and tear can also affect whether damage is covered.
Does landlord insurance cover lost rent?
It can if loss-of-rent or fair rental value coverage is included and a covered loss makes the rental uninhabitable.
Is flood covered by landlord insurance?
No. Flood usually requires a separate NFIP or private flood policy.
Do Airbnb and VRBO rentals need special coverage?
Often yes. Short-term rental use should be disclosed because a standard long-term landlord policy may exclude or limit that exposure.

Related resources

Helpful Cribb Insurance pages

Landlord InsuranceDP-1, DP-2, DP-3, rental property, and portfolio coverage. Flood InsuranceSeparate flood coverage for homes and rental properties. Umbrella InsuranceExtra liability protection over eligible policies. AI Insurance FAQPlain-English insurance answers from Cribb Insurance.

Get it right before the claim

Not sure your rental is properly covered?

Cribb Insurance Group Inc can review your current landlord policy, compare coverage options, and help you understand what would actually happen if you had a roof, fire, water, liability, flood, or rent-loss claim.

Start a Personal / Landlord Quote → Call 479-286-1066 Add Cribb as Google Preferred Source
Cribb Insurance Group Inc 1601 SW Regional Airport Blvd, Bentonville, AR 72713 479-286-1066 service@cribbinsurance.com www.cribbinsurance.com

Cribb Insurance Group Inc is an independent insurance agency serving Northwest Arkansas. This page provides general insurance education and is not legal, financial, or coverage advice. Coverage, exclusions, roof settlement methods, deductibles, and claim outcomes vary by carrier, policy form, property, underwriting, and claim facts. No coverage can be bound, changed, or confirmed through this page. Contact Cribb Insurance Group Inc for a personalized review.