Rhode Island Homeowners Pay Mid-Range Insurance Costs In The Country

Rhode Island homeowners face mid-range insurance premiums compared with other states, reflecting both the state’s coastal exposure and its smaller housing market.

While not as expensive as Gulf Coast states like Florida or Louisiana, Rhode Island’s costs trend higher than those of some New England neighbors.

New data from the U.S. Census Bureau and the 2025 Climate Risk Report place Rhode Island in the middle of the national spectrum.

Rhode Island’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau, Rhode Island homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average the same $1,500–$1,999. Overall statewide costs also fall into the $1,500–$1,999 range.

Rhode Island has 284,679 insured homeowner households in total—186,736 with a mortgage and 97,943 without. Among mortgaged owners, 16,978 pay less than $100 annually and 17,782 pay $4,000 or more. Among those without a mortgage, 18,014 pay less than $100 and 9,512 pay $4,000 or more.

Compared with nearby states, Rhode Island is on the higher end. Massachusetts homeowners with a mortgage also average $1,500–$1,999, while Connecticut falls into the same range. By contrast, Maine and New Hampshire are more affordable, averaging $1,000–$1,499 with a mortgage. Vermont is similarly affordable at $1,000–$1,499, making Rhode Island among the pricier states in New England, though still far below national hot spots.

Climate Risks Across the Region

The Climate Risk Report emphasizes how climate exposure is driving premiums higher in vulnerable states. Miami homeowners lead the U.S., paying an average of $22,718 annually, equal to 3.7% of median home value. Other Florida metros, such as Cape Coral and Tampa, also rank among the most expensive.

Rhode Island does not appear on the report’s list of metros with the steepest insurance burdens, but its position along the Atlantic coast leaves it exposed to hurricanes and storm surges.

For comparison, the New York–Newark–Jersey City metro, which includes northern New Jersey that borders Pennsylvania, ranks among the top U.S. markets for hidden flood exposure. The region shows a $95.3B gap in home values at severe or extreme flood risk that fall outside FEMA flood zones. That means many homeowners may underestimate their true exposure, leaving them without flood insurance.

A National Affordability Challenge

Even though Rhode Island premiums fall in the mid-range, affordability concerns are growing nationwide. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already experienced challenges renewing or obtaining coverage.

These rising costs are already reshaping buyer decisions. Nearly 30% of homebuyers said they had completely changed their search areas due to insurance challenges, while another quarter said they had overhauled their strategies altogether. A recent migration analysis shows that some buyers are moving to states with the lowest home insurance premiums in search of long-term stability.

Even more worrisome, 58% of homeowners nationwide said they would consider dropping coverage if premiums rose too high, with younger buyers the most likely to take that risk.

Rhode Island’s Outlook

For Rhode Island households, mid-range costs provide some stability, but coastal exposure keeps premiums higher than in other New England states. With climate risks intensifying, residents may want to use a home insurance comparison tool to evaluate coverage options. While Rhode Island is not among the most expensive markets today, affordability may become a larger concern in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.