LITTLE ROCK, Ark. — It's been nearly a year since a tornado tore through Little Rock, and now insurance officials are talking to lawmakers about why your rates could go up.
In Little Rock's Walnut Valley neighborhood, cul-de-sacs have become empty lots like the one Dillon Bevill-Smith lives on.
"There's a pang of sadness, but also a beacon of hope that sparked in a lot of us here in the neighborhood to watch our community grow again," Bevill-Smith said.
Bevill-Smith is a member of the HOA board and said insurance is one of the biggest hurdles for neighbors moving back to the area.
"One of our neighbors wants to, but he's still waiting on insurance," Bevill-Smith said.
But in a hearing at the Arkansas State Capitol today, state and national insurance agencies said they are also struggling. They reported billions in losses over the last few years and are paying out more than they're making.
"There has been an increase in frequency and severity of convection storms in Arkansas, large hail storms," Arkansas Insurance Department Compliance Director Jimmy Harris said. "As the frequency of those storms picks up, insurance has to adjust the rights to account for that."
Harris said this isn't the only reason rates could go up.
"During all of these climbs over the last year, they have discovered that many properties were underinsured and did not really account for the increased costs of materials," Harris said.
For the March 2023 tornado alone, the department reported over $500 million had been paid to Arkansans.
"I would say we're around 90 to 95% of those claims, in the personal lines market are indeed closed," Harris said.
Those living in Walnut Valley have a different perspective.
"I will laugh at 95%... there's no way that statistic is right," Bevill-Smith said. "Some of these homes look like they haven't been touched. Well, some of them have been touched because insurance just now, after almost a year, came out for the very first time to talk with the homeowner and send an adjuster."
Meanwhile, insurance companies work to stay in business.
"Every time somebody files a claim, every time there's a hailstorm," Harris said. "It is hard on the industry right now... I think every insurer is looking for ways to mitigate risks."
And Arkansans are preparing for a likely rate increase.
"If they are actually going to increase the rates, I would actually be able to see clearer communication on what things actually cover," Bevill-Smith said.
Lawmakers also discussed possible legislation to allow for a stronger, more affordable rebuilding process. That's not expected to move forward until the 2025 legislative session.
The Arkansas Insurance Department asks that anyone with continued insurance issues reach out to them at 800-852-5494 or at their email, insurance.consumers@arkansas.gov.