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Rhode Island Homeowners Insurance FAQ

Getting the answers to common Rhode Island Homeowners Insurance FAQs is a great way to get starting on comparing policies and coverage options. As RI homeowners, insurance FAQs give you a bit of leverage as you wade through the multiple coverage choices, rate offerings, and companies available. Use the answers to the FAQs below to select the best homeowners insurance for your Rhode Island home.

Rhode Island Homeowners FAQ: What is homeowners insurance and why do I need it?

Minimum homeowners insurance is often required by a mortgage lender prior to finalizing your loan. This is an insurance policy that will cover your home in the event of things such as fire or storm damage. You can purchase much more comprehensive homeowners insurance that will cover your belongings in the event of fire, theft, or other perils you have no control over. It will also cover the medical costs if someone gets hurt while on your property and you are legally responsible.

Rhode Island Homeowners FAQ: How much homeowners insurance should I buy?

The amount of homeowners insurance you need depends on many things. Do you want to cover only the minimum that your lending company requires or do you want more? If you want to protect your personal property you will need to decide how much everything is worth if you find yourself in the position that you need to replace it. You will also have to decide if you want to purchase additional riders on your policy to protect against things that are not covered under a basic policy.

Rhode Island Homeowners FAQ: How much can I expect to spend on homeowners insurance in Rhode Island?

Rhode Island is on the list of top ten highest premium rates in the United States. Expect an average of $849 for insurance. This amount will change based on the coverage you need. 

Rhode Island Homeowners FAQ: What affects the cost of homeowners insurance in Rhode Island?

  • Response time of the fire department and distance from the nearest hydrant. The further away these things are the more you are going to pay for insurance.
  • The age of your home. Newer homes cost less to insure than older ones. New homes are not a haven for potential problems with electric or unstable foundation.
  • Your credit score.
  • The number of claims that you have filed in the past as well as the number of claims that have been filed on the property before you bought it.
  • The amount of crime in the area.
  • Presence of dead bolts, security systems and indoor sprinklers.
  • The amount of insurance you decide to purchase.
  • Your deductible. A higher deductible mean a lower premium.
  • If you smoke. Premiums are lower if all the members of the family are non-smokers.
  • Construction materials of your home. It costs more to insure a house that is made entirely of wood while a house made of brick costs less to insure.
  • Does the property have a history of problems? This can be determined by looking at the Home Disclosure Report or the Comprehensive Loss Underwriting Exchange (CLUE). These two reports will not only tell you what kind of problems the house has had in the past, but it will give you an idea of what kind of problems it may have in the future. 

Rhode Island Homeowners FAQ: How is my credit score going to affect what I pay for homeowners insurance in Rhode Island?

The lower your credit score the higher your premium is going to be. The theory is that those with lower credit scores file more claims.

Rhode Island Homeowners FAQ: What are the different levels of homeowners insurance in Rhode Island?

  • HO1 – The first level specifies perils with very limited coverage. This is usually the minimum insurance that your lending agent will require.
  • HO2 – The second level of homeowners insurance specifies perils with less limited coverage. Where it will not cover everything, it will cover a lot more than a HO1 policy.
  • HO3 – This level of insurance covers all perils on buildings and specified perils on personal property excluding the risk of floods, earthquakes, war and nuclear accidents. You will want to look into the changes that were made in the act-of-war exemption.  These have changed since the terrorist attack of September 11. Some insurance companies will now cover your home in the event of a terrorist attack. This is where you are able to start adding your personal effects as well as riders for jewelry, art or antique collections.
  • HO4 – This is renters insurance. It will cover the cost of your personal effects but not the cost of the house you are living in.
  • HO5 – Condominium insurance. This covers the owner’s personal property loss as well as the loss of use of the condo.  

Rhode Island Homeowners FAQ: What will homeowners insurance cover?

  • Dwelling – This includes your house, detached garage and storage sheds from fire, wind, hail and vandalism.
  • Contents – This is your furniture, clothing, computer, TV, and other personal belongings.
  • Additional Living Expenses – If you have to stay in a hotel or rent a temporary apartment while your home is being rebuilt or repaired, your Rhode Island homeowners insurance will help cover it.
  • Liability – This protects you when you or another member of your family (including your dog) unintentionally injures someone or damages their property.
  • Medical Payments – Medical bills are paid for others injured while on your property. 

Rhode Island Homeowners FAQ: What will homeowners insurance not cover?

This depends on the type of coverage your purchase. Talk to your Rhode Island homeowners insurance agent because chances are you will be able to purchase whatever additional coverage you need. There are also two things that are handled very differently than rest of your policy.

Flood and earthquake damage. These will have to be purchased separately.   There are areas that are considered high risk for wind damage and damage due to storms and wind damage insurance will cost more in these areas.

Liability insurance in case of dog bites may not be covered by your policy. If you own a breed of dog that has a history of being aggressive there is no guarantee of coverage, even if you have dog bite insurance. Certain breeds of dogs are excluded in these policies. Be sure to ask your agent for all the details. 

Rhode Island Homeowners FAQ: How can I get a lower premium?

  • Ask about senior citizen discounts if you are 55 or over.
  • Install dead bolts, put fire extinguishers in your home or get a security system.
  • Increase your deductible.
  • Make sure that you have insured your home and not the land under it.  Mistaking the cost you paid for your home and what it would cost to rebuild it can cost you hundreds of dollars.
  • Compare quotes from top insurers using our free quote tool! 

Rhode Island Homeowners FAQ: Will my homeowners insurance protect any special collections that I have such as antiques, jewelry, coins or stamps or do I need to purchase additional insurance?

These items will need to be professionally appraised and are only routinely covered up to a certain amount. Anything over the limit set by the insurance company will need an additional policy rider for coverage. 

Rhode Island Homeowners FAQ: I work from home. Will my homeowners insurance cover my business items as well?

No. These things are not covered in a basic policy. You will need to purchase additional insurance.

Rhode Island Homeowners FAQ: Will my policy pay replacement cost or actual cash value (ACV)?

Most of the time your house will be covered at replacement cost. Some insurance companies automatically adjust coverage each year to cover any inflation on building materials.  

Rhode Island Homeowners FAQ: What if I can’t find coverage?

The state of Rhode Island offers something called the FAIR (Fair Access to Insurance Requirements) Plan, this can be applied for through any private property insurer. In order to be eligible to apply to the FAIR Plan you have to have been turned down by three different insurance companies. Someone from FAIR will come out to inspect your property to see if you are eligible. Just keep in mind that the FAIR Plan is not guaranteed. 

Compare Rhode Island Homeowners Insurance Quotes Now!

Use our free tool at the top of the page to get started comparing Rhode Island homeowners insurance policies from top insurance companies side by side. Now that you’ve got the answers to your Rhode Island homeowners insurance FAQs, get started finding great quotes now!

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