If you own a home in Rhode Island, you might have noticed your insurance premiums creeping higher over the past few years. You’re not imagining things—recent data shows a sharp rise in home insurance costs across the state. For many, these increases could significantly impact the affordability of homeownership, and with national trends hinting at even higher premiums over the next few decades, now is the time to understand what’s happening locally.

How Bad Is the Rise in Home Insurance Premiums in Rhode Island?

According to a recent study by the National Bureau of Economic Research (NBER) and CoreLogic, Rhode Island has experienced noticeable insurance premium hikes between 2020 and 2023. Here’s how different counties have been affected:

  • Kent County: Premiums jumped 20.5%—the highest in the state—rising from $1,654.40 to $1,992.92.

  • Newport County: Saw a 15.2% increase, going from $2,271.25 to $2,616.80.

  • Providence County: Experienced a 13.4% rise, with premiums increasing from $1,446.27 to $1,639.60.

  • Washington County: Premiums rose by 9.1%, from $1,949.68 to $2,127.04.

  • Bristol County: Faced a 10.6% increase, from $2,508.32 to $2,775.10.

These increases may seem manageable compared to the projected 600%+ hikes in some coastal regions of Louisiana and Florida by 2055, but the impact on Rhode Island homeowners is still significant—especially as costs continue to climb with inflation, rising property values, and increased climate-related risks.

Why Are Insurance Premiums Rising in Rhode Island?

While much of the national focus has been on catastrophic risks like hurricanes in Florida or wildfires in California, Rhode Island isn’t immune to the factors driving up home insurance costs. Here’s why local premiums are climbing:

  1. Climate-Related Risks: Coastal flooding and rising sea levels put Rhode Island homes at risk, especially in counties like Newport and Washington.

  2. Higher Construction Costs: The pandemic-driven housing boom led to higher home prices and increased construction costs, raising the price of rebuilding homes after a loss.

  3. Market Instability: National insurance carriers are tightening underwriting standards, and some are pulling out of higher-risk markets entirely, leaving homeowners with fewer affordable options.

  4. Reinsurance Costs: Insurance companies often buy insurance for themselves—this is called reinsurance. It helps protect them from huge losses, like when major hurricanes hit. When reinsurance costs rise (due to increased claims from disasters globally), insurance companies pass those costs down to homeowners in the form of higher premiums. Even if Rhode Island doesn’t experience these disasters directly, global events can still drive up local insurance costs.

What Does This Mean for Rhode Island Homeowners?

Rising insurance premiums can have a direct impact on homeownership affordability and the overall housing market. Higher insurance costs increase the total cost of owning a home, potentially affecting mortgage qualifications and monthly payments.

For prospective homebuyers, this means factoring in rising insurance rates when budgeting for a new home. Sellers might also feel the pinch, as higher insurance costs can deter potential buyers.

How The Slocum Agency Can Help Protect Your Investment

At The Slocum Agency, we understand that rising insurance costs can be overwhelming. As local experts who know Rhode Island’s unique market conditions, we’re here to help you navigate these changes and find the most cost-effective solutions to keep your home protected.

Our team offers:

  • Tailored insurance policies for Rhode Island homeowners.

  • Expert advice on minimizing insurance costs without sacrificing coverage.

  • Assistance with flood and coastal insurance options, especially for homes in higher-risk areas.

Visit www.slocumins.com to learn how we can help you secure the coverage you need—without overpaying.

The Bottom Line

Rising home insurance premiums are becoming an unavoidable reality for Rhode Island homeowners. While we’re not facing the extreme spikes projected for other regions, local increases still pose challenges for budgets and housing affordability. Staying informed and working with a trusted local insurance expert, like The Slocum Agency, is the best way to protect your investment—and your peace of mind.

Have questions about how rising premiums might affect you? Contact The Slocum Agency today for a personalized insurance review or click here to start the process of obtaining a quote.