Rhode Island’s Insurance Crisis: Why Are So Many Homes Uninsured?
Rhode Island, the smallest state in the U.S., is facing a big problem. Home insurance coverage is slipping, and the numbers are alarming. In 2024, the state saw a 19.4% increase in uninsured homes—the second-highest jump in the nation. That’s nearly 35,000 homes without coverage.
For a state with relatively low disaster risk, this trend raises serious questions. What’s driving it? And what does it mean for homeowners?
The Numbers Behind the Crisis
Nationwide, 12.2 million homes—about 1 in 7—are uninsured. But Rhode Island’s spike stands out. The state’s uninsured rate grew faster than almost anywhere else, second only to Vermont.
In Providence, the state’s largest city, the uninsured rate jumped 21.8% in just one year. Coastal towns like Newport and Narragansett, known for their high property values, are also seeing more homeowners drop coverage. Rising premiums and economic pressures are pushing people to make risky decisions.
Rising Costs, Shrinking Coverage
Home insurance in Rhode Island isn’t cheap. The median annual premium for mortgaged homes is $1,538, according to the U.S. Census Bureau. For coastal properties, the costs are even higher. Flooding risks and storm damage drive up rates, especially in areas like Westerly and Middletown…