Thinking About Buying or Selling a Home in Rhode Island? Here’s Why Flood Insurance Matters

Flooding is the most common and costly natural disaster in the U.S., and Rhode Island is no exception. Whether you’re buying or selling a home in Warwick, East Greenwich, Cranston, Coventry, North Kingstown, or anywhere in Rhode Island, understanding flood insurance is essential.

Why? Because even a few inches of water can cause thousands of dollars in damage, and most homeowners insurance policies don’t cover flood damage.

At Slocum Home Team, we help homebuyers and sellers navigate flood zones, insurance requirements, and risk factors to ensure smooth transactions and smart investments. And when it comes to securing the right flood insurance policy, our in-house experts at The Slocum Agency are here to guide you every step of the way.

Let’s break it all down.

1. Does Homeowners Insurance Cover Flood Damage?

🚨 No! Most standard homeowners insurance policies DO NOT cover flood damage.

Many homeowners assume they’re protected, but flood coverage requires a separate policy. If your home is at risk for flooding—whether from heavy rain, coastal storm surges, or even drainage issues—you’ll need flood insurance to have the best chance of being financially protected.

What happens if you don’t have flood insurance?
✔️ If there’s a flood, federal disaster assistance may be available—but it’s limited and often comes in the form of loans that must be repaid.
✔️ A single inch of floodwater can cause over $25,000 in damage—costs that homeowners must pay out of pocket without proper coverage.

This is why flood insurance is a critical piece of homeownership in Rhode Island’s coastal and flood-prone areas.

2. Is Flood Insurance Required in Rhode Island?

💡 It depends on your location and financing.

✔️ If you’re buying a home with a federally backed mortgage in a high-risk flood zone, flood insurance is required by your lender.
✔️ Even if it’s not required, that doesn’t mean you’re in the clear. Anywhere it rains, it can flood.

According to FEMA (Federal Emergency Management Agency), homes in moderate-to-low-risk flood zones account for nearly 25% of flood claims—so even homes outside of designated flood zones may benefit from coverage.

How do you know if a home requires flood insurance?

• Check FEMA’s flood maps (https://www.fema.gov/flood-maps) to see if a home is in a high-risk area.

• Ask your real estate agent (like Nick Slocum or one of The Slocum Home Team’s top agents) for guidance.

• Consult with an insurance expert—The Slocum Agency can help you compare policies and find the right coverage. Visit www.slocumins.com for a personalized flood insurance review.

3. How Much Does Flood Insurance Cost?

💰 The average flood insurance premium is about $1,000 per year, but pricing varies based on:

🔹 Location – Homes in high-risk flood zones cost more to insure.
🔹 Elevation – Homes built above base flood elevation often have lower premiums.
🔹 Property Type – Factors like construction materials, foundation type, and age of the home can affect rates.
🔹 Coverage Level – Policies typically include building coverage (repairs) and personal property coverage (damaged belongings).

NFIP vs. Private Flood Insurance

If you need flood insurance, you have two main options:

🏛 National Flood Insurance Program (NFIP) – Backed by FEMA, offers coverage up to $250,000 for building repairs and $100,000 for personal property.
🏢 Private Flood Insurance – May offer higher coverage limits, additional benefits, and faster processing than NFIP policies.

💡 Good to know: NFIP policies usually have a 30-day waiting period before taking effect, so plan ahead! Not sure which policy is best for you? The experts at The Slocum Agency can help you navigate your options—contact us at www.slocumins.com.

4. Flood Insurance and Real Estate Transactions

If You’re Selling a Home in a Flood Zone

📌 Disclose flood insurance requirements early to avoid surprises.
📌 Show proof of an active flood insurance policy—some buyers may be able to assume it.
📌 Address buyer concerns about flood risk with real data and mitigation strategies.

If You’re Buying a Home in a Flood Zone

✅ Get a flood zone determination early—your lender will require it if you need flood insurance.
✅ Compare NFIP and private insurance options—you may get better coverage for a similar price.
✅ Consider long-term costs—factor in flood insurance when budgeting for your mortgage payment.

5. What Rhode Island Homeowners Need to Know About Flood Risk

🌊 Rhode Island’s coastal communities are particularly vulnerable. Even homes miles away from the shoreline can flood due to excessive rainfall and storm surges.

Common flood risk areas include:

• **Warwick (Greenwood, Buttonwoods, Conimicut)

• East Greenwich (Harbor District, waterfront homes)

• Cranston (Pawtuxet, Edgewood, Reservoir Ave)

• North Kingstown (Wickford, Quidnessett)

• Providence (Riverside areas, Fox Point, Federal Hill low-lying zones)**

🏡 Thinking of buying or selling in these areas? Make sure you understand flood risk and insurance costs before making a decision.

6. What’s Next? Talk to the Experts!

💡 Flood insurance doesn’t have to be confusing. Whether you’re buying, selling, or just need guidance, the Slocum Home Team can help you navigate Rhode Island’s real estate market with confidence. And when it comes to securing the right flood insurance policy, our in-house team at The Slocum Agency has you covered.