Most homeowners spend about 15 minutes on their insurance renewal. Open the letter, glance at the premium, sign the auto-pay authorization, done. The declarations page — the one that spells out what’s actually covered and where the gaps are — usually doesn’t get read until after a claim has already been filed.

At Paul Davis Restoration of Northwest Arkansas, we’re on the other end of that. We show up after the tornado, the burst pipe, the sewage backup, or the fire, and we work with the insurance carrier through every claim. And after hundreds of claims across Rogers, Bentonville, Bella Vista, Centerton, Fayetteville, and the rest of NWA, the same handful of coverage gaps show up over and over — gaps that cost Arkansas homeowners tens of thousands of dollars at claim time and would have cost less than a hundred dollars a year to fix during renewal.

Here are the five most costly ones. Every one is worth 10 minutes of your renewal call with your agent this year.

If you’ve already had a claim denied or under-paid, our guide on what to do when your Arkansas insurance claim is denied covers your options. This post is about how to prevent that outcome before the loss happens.

1. Your wind/hail deductible is a percentage, not a flat dollar amount

This is the single most common surprise we see in Northwest Arkansas — and the most expensive.

Most Arkansas homeowners policies structure the wind/hail deductible as a percentage of dwelling coverage, typically 1% to 2%. This is different from the flat deductible ($1,000 or $2,500) that most homeowners assume they have, because that flat number is only the “all-other-perils” deductible. Wind, hail, and tornado damage — the exact events most likely to trigger a large claim in NWA — get the separate percentage-based deductible.

Run the math on your own home:

• $300,000 dwelling coverage × 2% wind/hail deductible = $6,000
• $400,000 dwelling coverage × 2% wind/hail deductible = $8,000
• $600,000 dwelling coverage × 2% wind/hail deductible = $12,000
• $800,000 dwelling coverage × 2% wind/hail deductible = $16,000

That’s what you pay out of pocket after a hailstorm or tornado before your carrier pays a dollar. On the largest homes in the Vaughn, Crystal Springs, and Pinnacle Hills neighborhoods, we’ve seen wind/hail deductibles above $20,000.

What to ask your agent at renewal: “What’s my wind/hail deductible, in actual dollars? Is it a percentage or a flat amount? Can I buy it down to a lower percentage or a flat number?” Some carriers will let you buy the deductible down to 1% or even a flat $2,500 for a modest premium increase. On a home with $500,000+ of dwelling coverage, that math almost always favors buying it down.

2. Your roof is on ACV, not RCV — and probably has a cosmetic damage exclusion

The second-biggest gap we see, especially on homes with roofs that are 15+ years old.

Homeowners policies pay claims one of two ways: Actual Cash Value (ACV) or Replacement Cost Value (RCV). Under RCV, if a hailstorm destroys your 15-year-old asphalt shingle roof, the carrier pays what it costs today to install a new roof of like kind and quality. Under ACV, they pay what your 15-year-old roof was actually worth — heavily depreciated. On a $25,000 roof replacement, the difference can easily be $10,000 to $15,000 out of your pocket.

Many Arkansas carriers now automatically switch older roofs to ACV coverage at renewal — often without highlighting the change. If your roof is over 10 years old, this is one of the first things to check.

The related gap is the cosmetic damage exclusion. Some carriers exclude “cosmetic damage” from wind/hail coverage on metal roofs, siding, and gutters — meaning if hail dents your metal roof but doesn’t compromise function, the carrier won’t pay for replacement even though the aesthetic is destroyed. Cosmetic damage exclusions have become more common in NWA policies over the last 3-5 years as claim frequency has risen.

What to ask your agent at renewal: “Is my roof on RCV or ACV? Do I have a cosmetic damage exclusion for wind or hail? If yes, what would it cost to remove that exclusion or restore RCV?”

3. You don’t have water backup / sewer backup coverage

Standard homeowners policies exclude damage from water backing up through drains and sewers. If a heavy Northwest Arkansas rain overwhelms the city sewer system and pushes wastewater back up through your basement floor drain — a scenario we respond to every summer — your standard policy won’t cover the damage.

The fix is inexpensive. A water backup / sewer backup endorsement typically costs $30 to $100 per year and adds $5,000 to $25,000 of coverage specifically for backup losses. If you have a basement, a finished lower level, or a sump pump, this endorsement is nearly always worth it.

We see this gap most often in:

• Older Bentonville and Rogers homes with basements and older sewer connections
• Bella Vista homes on sloped lots where surface water and sewer backups can converge
• Homes with sump pumps (a sump pump failure combined with heavy rain is a covered claim if you have the endorsement, and an out-of-pocket loss if you don’t)

For more on what causes and how to respond to sewage events, see our sewage backup response guide.

What to ask your agent at renewal: “Do I have a water backup or sewer backup endorsement? If not, what’s the annual cost to add $10,000 or $25,000 of coverage?”

4. Your dwelling coverage hasn’t kept up with what it actually costs to rebuild

Construction costs across Northwest Arkansas rose roughly 30% to 40% between 2020 and 2024. Lumber, labor, roofing materials, drywall — every input in a restoration project — is meaningfully more expensive than it was five years ago. Many homeowners policies auto-index dwelling coverage upward each year to keep up, but the auto-index is often slower than actual construction inflation.

The result: a lot of NWA homeowners are underinsured on the dwelling side without knowing it.

Underinsurance shows up in one of two painful ways at claim time:

• On a partial loss, the “coinsurance penalty” kicks in. If your policy requires 80% coinsurance and your dwelling coverage is only, say, 65% of the actual replacement cost, the carrier can reduce the payout on your partial loss by that shortfall ratio. On a $50,000 kitchen fire in a home that should have been insured for $500,000 but is only insured for $325,000, the coinsurance penalty can cost you $15,000+ out of pocket.
• On a total loss, you simply hit the dwelling coverage limit before the home is rebuilt. Every dollar over the limit is yours.

If your dwelling coverage number hasn’t been actively reviewed since 2020 or 2021, it’s very likely too low for 2026 construction costs in NWA.

What to ask your agent at renewal: “What’s my dwelling coverage limit? What does the carrier estimate it would actually cost to rebuild my home today, at current NWA construction costs? Should we increase the limit?” A reputable agent will run a fresh replacement cost estimate at your request.

5. Your “loss of use” (ALE) coverage is capped lower than you think

If your home is uninhabitable after a covered loss — significant fire, extensive water damage, tornado structural damage — your policy pays for a hotel, short-term rental, meals over what you’d normally spend, pet boarding, and other displacement expenses. This is called Additional Living Expense or Loss of Use coverage. It usually shows up on the declarations page as “Coverage D.”

The catch: most policies cap ALE at 20% to 30% of dwelling coverage, but with a time limit — often 12 months. If your reconstruction takes longer than that (and many large-loss reconstructions do), the ALE stops paying and you’re on the hook for the rest of your temporary housing yourself.

Some homeowners are also surprised to discover their ALE is expense-based, not a lump sum. You submit hotel receipts, food receipts, and other expenses — the carrier reimburses the incremental cost above what you’d normally spend on food and lodging.

Situations where the ALE gap really hurts NWA homeowners:

• Major reconstruction projects (fire, tornado) that run 8-12+ months
• Families with pets that need boarding at a rate not covered by standard ALE limits
• Families with school-age kids who need to stay in a specific district, driving up rental costs

What to ask your agent at renewal: “What’s my ALE limit in dollars? How long does it run? Can I buy up to 24 months or unlimited time? What does that cost annually?” On a home you’d actually struggle to rebuild in 12 months, extended ALE is often the highest-value dollar you’ll spend on a policy.

Bonus: A few Arkansas-specific things worth checking

Beyond the five gaps above, a few smaller items are worth a look at renewal:

• Flood insurance is separate. Standard homeowners policies do not cover rising surface water. If you’re in or near a Zone AE or in a Bella Vista sloped area where surface water is a real risk, a separate NFIP flood policy is a different conversation.
• Ordinance or Law coverage. If your home is older and doesn’t meet current Arkansas building code, an ordinance-or-law rider covers the extra cost of bringing the reconstruction up to code. Without it, you pay for code upgrades out of pocket.
• Special limits on personal property. Jewelry, firearms, business property, silver, and other categories are usually capped at low limits ($1,500 to $2,500 typically). Scheduled personal property riders lift those limits.
• Mold coverage cap. Most policies cap mold-related damage at $5,000 to $10,000. Given how quickly mold takes hold after water damage in Northwest Arkansas humidity (see our mold growth timeline), this cap can be reached quickly. Some carriers offer higher-limit mold endorsements.

The renewal call, condensed to one page

If you take nothing else from this post, take this list into your renewal conversation:

1. What’s my wind/hail deductible in actual dollars? Can I buy it down?
2. Is my roof on RCV or ACV? Do I have a cosmetic damage exclusion?
3. Do I have a water backup / sewer backup endorsement?
4. What’s my dwelling coverage, and does it reflect 2026 NWA construction costs?
5. What’s my ALE limit and time limit? Should I extend it?

Every one of these can be adjusted at renewal. Most cost less than $200 a year to fix. All of them come up over and over in the claims we work.

If you’re already in a claim

Renewal-time coverage checks are the best case. But if you’re already in a claim and the coverage gaps above are causing you problems, we can help. Paul Davis Restoration of Northwest Arkansas works with every major carrier writing policies in NWA — State Farm, USAA, Farm Bureau, Shelter, Allstate, Liberty Mutual, Travelers, Nationwide, Erie, and the regional carriers — and we know how these coverage disputes typically get resolved.

For active water, fire, mold, or storm damage in Northwest Arkansas, call (479) 396-2256. A real person answers 24/7. For non-emergency questions about coverage, adjuster disputes, or a past claim, use the contact form below.

Related resources

• What to do if your Arkansas insurance claim is denied
• How to choose a restoration company in NWA
• Mold growth timeline after water damage
• Sewage backup: what to do
• Burst pipe: the first 60 minutes
• After a tornado: homeowner checklist
• Our 8-step restoration process

This post is general information from a restoration company’s perspective, not insurance advice. Every policy is different. For specific coverage questions, talk to your licensed Arkansas insurance agent or contact the Arkansas Insurance Department at 1-800-282-9134.

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