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Homeowner insurance coverage in Rhode Island for condos or houses is ranked No. 9 among the states with the most expensive annual insurance rates. Average insurance premiums cost approximately $919.

The higher insurance rates in Rhode Island and other East Coast states are a result of the devastation caused by Hurricane Katrina. Sadly, these high rates are coupled with higher deductibles. Worse, some insurance providers have been taking advantage of homeowners by not providing homeowner coverage to new applicants or by basing deductibles on the percentage of the home’s insured value instead of the percentage of the claim filed.

As a concrete example, a home valued at $500,000 is supposed to receive a claim of $25,000 for storm damage. However, the policy has a 5% deductible. When applied to the home’s value, this means that the homeowner — instead of being paid the $25,000 by the insurance company — will be shouldering this entire amount out of his or her own pocket while the insurance provider pays absolutely nothing. Legally, the deductible should be applied to the claim, so that in a $25,000 payout, the homeowner will be shouldering $1,250 only.

Because of these abuses by insurance companies, Rhode Island legislators have passed two bills that would stop insurance companies from canceling or not renewing policies based on location and impose stricter measures on claims.

However, a homeowner insurance policy in Rhode Island provides protection to the home and detached structures (such as sheds and garages) and personal belongings as well as liability coverage. The list of perils in the basic policy, however, excludes floods. Given that Rhode Island is a high risk area for hurricanes, flood coverage is a must. Since most insurance providers will not offer this type of coverage as an add-on, the best option is to purchase a separate policy from the National Flood Insurance Program.

When considering buying or building a home in Rhode Island, there are factors that could raise or lower rates. These factors are:

· Location:  Homes in flood-prone or high crime areas would have higher rates. It is recommended that full disclosure about the site be obtained before building or buying property.

· Distance from a fire department or fire hydrant:  The farther the home is from a hydrant or fire station, the higher the premiums.

· Age of the home:  Older homes are costlier to insure.

· Construction of the home:  Homes made from sturdy materials, such as brick, would have lower rates compared to wood or frame houses.

· Credit Score:  A poor credit score would mean higher insurance rates.

· Electrical and plumbing systems:  New household systems have less chances of failing, so discounts to premiums will apply.

· Home security system:  Fire and burglar alarms and water sprinkler systems also entitle the homeowner to insurance discounts.

· Multiple policies:  An umbrella policy from the same insurance provider means lower rates thanks to discounts.

· Quitting smoking:  Smoking is considered a fire hazard, so quitting this nasty habit would entitle the homeowner to discounts.

· Senior Citizen Discount:  Applicable to homeowners 55 years old and above.

Homeowners need not be burdened by high insurance rates or unscrupulous insurance companies. Any concerns or complaints about homeowner insurance in Rhode Island are best brought to the attention of the state’s insurance department.

Find  homeowner insurance rates in each of these Rhode Island cities or counties:

Barrington – Bristol – Burrillville – Central Falls – Charlestown – Coventry – Cranston – Cumberland – Cumberland Hill – East Greenwich – East Providence – Exeter – Glocester – Greenville – Hopkinton – Johnston – Lincoln – Middletown – Narragansett – Newport – Newport East – North Kingstown – North Providence – North Smithfield – Pawtucket – Portsmouth – Providence – Richmond – Scituate – Smithfield – South Kingstown – Tiverton – Valley Falls – Wakefield-Peacedale – Warren – Warwick – West Warwick – Westerly – Woonsocket – Bristol County – Kent County – Newport County – Providence County – Washington County

Homeowner insurance in Rhode Island provides coverage in the event of damage to your property from theft, fire, floods, and natural disasters as well as protects you from liability for injuries or damage caused to people on your property. The right homeowner insurance plan  can help you make the best choices about this important protection for you and your family. Get free quotes on home owner insurance in Rhode Island above.

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