The Best Cheap Rhode Island Homeowners Insurance for 2024

Purchasing homeowners insurance is the best way to protect your new investment. The trick is figuring out which insurance policy is right for you. Here, we identify the best homeowners insurance in Rhode Island, direct you toward the cheapest policies in the state, and tell you what to consider when choosing a Rhode Island home insurance policy.

• Cheapest overall for Rhode Island: Heritage Insurance
• Cheapest for new home construction: State Farm
• Cheapest for older homes: United Insurance
• Cheapest for homeowners who have filed a claim: State Farm

Cheapest overall for Rhode Island

For cheap homeowners insurance in Rhode Island, these four insurers offer the lowest overall rates:

• Heritage Insurance, with an average annual rate of $634
• United Insurance, coming in with an average rate of $654
• New London, with an average annual rate of $678
• State Farm, also competitive, with an average rate of $689

Cheapest for new home construction

One added benefit of a new home is that it is less expensive to insure than an existing (or older) home. That's because all the components in the house are new, and insurance companies figure they won't break down any time soon. Fewer failing components mean there's a lower chance of a roof leak, wet basement, or broken water pipe. The expected savings is passed on to the homeowner through lower insurance premiums. In Rhode Island, State Farm comes in with the lowest average annual rate of $396.

Here are the three Rhode Island home insurance providers offering the next lowest rates for newly built homes:

• Metropolitan, with an average annual rate of $430
• Nationwide, with an average annual rate of $457
• Heritage Insurance, coming in with an average annual rate of $546

Cheapest for older homes

Older homes are full of history and, often, architectural detail. However, due to age, older homes are more likely to face issues like shifting foundations and leaky basements. These issues lead to insurance claims, which helps explain why insurers tend to charge more to cover an older home. In Rhode Island, these four companies offer the lowest older homes rates:

• United Insurance, with an average annual rate of $635
• Heritage Insurance, offering an average annual rate of $655
• State Farm, with an average annual rate of $660
• New London, offering a relatively competitive rate of $727

Cheapest when you've made a claim

Homeowners insurance is vital. However, making a major claim often leads to an increase in premium, at least for a while. For Rhode Islanders who have made an insurance claim, these four insurers aim to keep rates low:

• State Farm, offering a post-claim rate of $660
• Heritage Insurance, coming in with an average annual rate of $717
• New London, offering an average annual rate of $721
• United Insurance, with an average annual rate of $1,123

Average home insurance cost in Rhode Island compared to the national average

At an average statewide cost of $1,248, Rhode Islanders pay 30% less than the average national rate of $1,788.

Rhode Island homeowners insurance overview

The best homeowners insurance in Rhode Island offers two things: Low premiums and a high level of coverage. The challenge is finding the "perfect" policy while being bombarded with unfamiliar terms. Here's a breakdown of what some of those terms mean.

Different types of homeowners coverage

Policies come in all shapes and sizes, from barebones to all the bells and whistles. The good news is that the best homeowners insurance companies offer them all. Choosing the right policy is a matter of determining how much protection a homeowner needs. For example, if a homeowner has an expensive wine cellar or home theater, they may want a more comprehensive policy.

Level of coverage

Although a basic policy is the least expensive option, there's a problem with barebones policies. A basic policy with zero bells and whistles may not fully cover the homeowner in the event of a loss. It benefits a homeowner to carefully consider the level of coverage they need before shopping for the best homeowners insurance in Rhode Island.

Amount of deductible

When a homeowner suffers a loss and makes a claim, they pay an insurance deductible. The deductible is the amount they must pay toward a repair or replacement. Let's say there's a fire in the basement. It's contained but still causes $25,000 worth of damage. If the homeowner has a $1,000 deductible, that means they're responsible for paying the first $1,000, and the insurance company will pick up the remaining $24,000. One way to keep premiums low is to opt for a higher deductible.

Potential discounts

One of the simplest ways to land cheap homeowners insurance in Rhode Island is to ask about policy discounts. Nearly all insurers offer a full menu of home insurance discounts. These discounts cover everything from whether the home has an alarm system to how recently the roof was replaced.

What are the most common homeowners insurance claims in Rhode Island?

Knowing the most common Rhode Island home insurance claims helps a homeowner narrow down which types of coverage are most vital.

Wind and hail

Nationally, wind and hail are the most frequent causes of insurance claims, and Rhode Island is no exception. Wind and hail can damage everything from roofs to siding and windows.

Lightning strikes and fire

Other common claims include lightning strikes and fire. As anyone who has ever dealt with fire knows, it can lead to devastating losses.

Water damage

Nationally, the average rainfall is 38 inches. In Rhode Island, annual precipitation averages 42 to 46 inches. Rain and snowfall lead to issues like wet basements, damaged roofs, and slip-and-fall accidents.

Homeowners insurance coverage options and discounts in Rhode Island

Once again, the best homeowners insurance in Rhode Island provides great coverage at an affordable price. The easiest way to land a low price is to take advantage of discounts. Here, we highlight coverage options and illustrate how discounts can reduce annual premiums.

Coverage options

A quick rundown of the eight types of homeowners insurance includes:

• One type covers renters.
• One type covers mobile homes only.
• The other six types of coverage range from basic to comprehensive.

A comprehensive policy may include protection for things like expensive upgrades and other expensive-to-replace features.

Discount options

One factor in finding low-cost insurance in Rhode Island is claiming as many discounts as possible. Here are some of the most common:

• Installing a burglar alarm saves an average of 7%.
• Upgrading the electrical system saves an average of 5%.
• A roof upgrade saves an average of 8%.
• Bundling home and auto coverage can save up to 19%.

Five cheapest cities in Rhode Island for homeowners insurance

As insurance companies determine rates, they take into account many factors, including:

• Area crime rate
• Value of surrounding property
• Cost to rebuild
• How far a home is from a fire station

The five cheapest cities in Rhode Island for homeowners insurance are:

Five most expensive cities in Rhode Island for homeowners insurance

And the five most expensive cities to insure a home are:

Fortunately, Rhode Island insurance companies offer rates well below the national average, making it easier for the average homeowner to purchase the level of coverage they need.