September 9, 2025
Rhode Island home insurance averages $1,650–$2,080 yearly, below national costs, but coastal risks, hurricanes, and flooding drive coverage needs.
Rhode Island homeowners face a unique combination of coastal risks and relatively affordable insurance premiums compared to national averages. Despite the Ocean State's exposure to hurricanes, nor'easters, and flooding, the average annual cost of home insurance in Rhode Island ranges from $1,650 to $2,080, positioning it below the national average.
The average annual cost of home insurance in Rhode Island is $2,080, nearly the same as the national average of $2,110. However, other analyses show even more favorable rates, with MoneyGeek reporting an average of $1,650 for policies with $250K in dwelling coverage.
Several factors contribute to rate variations across the state. In Providence, homeowners pay an average of $2,420 per year, while those in Newport pay $2,455 per year. Credit scores significantly impact premiums, with poor credit resulting in average annual premiums of $3,475, which is 67% more than those with good credit.
State Farm has been cited as one of the more affordable options across multiple analyses. According to ValuePenguin, State Farm offers some of the most competitive rates with policies starting at $54 per month for newer homes in certain areas. Actual rates vary by location, coverage levels, and individual underwriting factors.
Amica consistently ranks among the top performers for both cost and customer service. Amica has consistently been rated highly on J.D. Power's Claims and Customer Satisfaction Surveys and receives fewer complaints than many other companies. The company also offers a dividend policy that may return a portion of premiums annually, depending on company performance.
Narragansett Bay Insurance Company provides specialized coastal coverage with competitive rates, though specific pricing requires individual quotes. The company offers the Mariner Plus Endorsement for enhanced coastal protection.
Rhode Island's coastal location creates several insurance considerations that homeowners must address:
You may have a separate hurricane deductible that applies when a hurricane warning is issued and remains in effect for 24 hours. In Rhode Island, your hurricane deductible typically cannot exceed 5% of your home's insured value. For a home with $300,000 in dwelling coverage, this means a maximum hurricane deductible of $15,000.
Some insurers may offer policies without separate hurricane deductibles. Smaller coastal insurance companies like Spinnaker Insurance, Coastal Agents Alliance, and Narragansett Bay Insurance may offer competitive pricing with standard deductible structures.
According to FEMA flood maps, Rhode Island has considerable flood risk in many areas. Standard homeowners policies exclude flood damage, making separate flood insurance important for many properties. Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance.
The state participates in the Community Rating System, with eight communities earning discounts ranging from 5-45% for flood insurance premiums based on flood mitigation efforts.
Properties near Narragansett Bay, Newport, and other coastal areas face additional considerations:
Given Rhode Island's unique risks, several endorsements may be particularly valuable:
Water Backup/Sump Overflow: Water backup coverage can be important in basements and crawl spaces and may be especially relevant for older homes or areas prone to heavy rainfall.
Ordinance or Law Coverage: May be valuable for the state's numerous historic homes, helping ensure compliance with current building codes during reconstruction.
Service Line Coverage: Can provide protection for aging infrastructure, covering underground utility line repairs.
Scheduled Personal Property: May be especially important for high-net-worth coastal clients requiring coverage for jewelry, art, and collectibles.
The Rhode Island insurance market faces several pressures affecting availability and pricing:
Rhode Island's home insurance market faces increasing pressure, with some major insurers limiting new policy issuance in the state. Since 1980, Rhode Island has experienced 33 extreme weather events with losses exceeding $1 billion each.
Climate change continues to influence rate trends. Climate-related risks contribute to evolving insurance pricing in Rhode Island. The state's low elevation may compound these risks, with Rhode Island's highest point at only 800 feet, potentially increasing susceptibility to flood damage.
Historic Homes: Rhode Island's abundant historic properties may require special consideration. Insurers typically review the condition of electrical systems, plumbing, and roofing for older constructions.
Vacation/Secondary Homes: These properties may face different pricing and limited carrier availability based on occupancy patterns and seasonal use.
Construction Materials: Homes constructed with durable materials that resist severe weather may be eligible for more favorable insurance rates.
In Connecticut, the average cost of home insurance for $300,000 in dwelling coverage is approximately $1,668 per year, while some analyses show Rhode Island averaging $2,349 per year, though other sources indicate Rhode Island may have more competitive rates in certain circumstances.
Massachusetts homeowners pay an average of $2,008, which is below the national average, while Connecticut homeowners may find competitive rates around $1,290 per year with certain carriers for similar coverage levels.
Rate comparisons based on publicly available data as of 2024-2025; actual rates vary by location, coverage selections, and individual underwriting factors.
For insurance servicers and financial institutions serving Rhode Island homeowners, partnering with specialized providers can potentially enhance customer experience while helping manage operational costs. Covered offers warm transfer capabilities designed to help servicers efficiently connect customers with licensed insurance professionals who understand Rhode Island's market dynamics. This partnership approach may help reduce call center operational expenses while ensuring customers receive guidance on coverage options, coastal risk management, and strategies that may help with premium costs. By providing comprehensive insurance support, servicers can work to strengthen customer relationships while helping homeowners navigate the complexities of Rhode Island's evolving insurance landscape.
Covered operates as a licensed insurance agency. Services and availability may vary by state. Please verify licensing and eligibility in your area.
Despite rising premiums, Rhode Island homeowners can consider several strategies to help control insurance costs:
Rhode Island's homeowners insurance market will likely continue facing pressure from climate-related risks and capacity constraints. Rhode Island has secured over $12 million in federal funds from the Emergency Watershed Protection program to facilitate voluntary buyouts of homeowners in chronically flood-prone properties, indicating state-level recognition of ongoing flood risks.
For homeowners, navigating this environment may involve working with knowledgeable insurance professionals who understand coastal risks, maintaining appropriate coverage levels including flood insurance where necessary, and regularly reviewing policies to help ensure optimal protection and pricing. The state's competitive pricing compared to some other coastal regions may provide some relief, but careful management of coverage and costs remains important for protecting one of life's most significant investments.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
