Rhode Island guide

Rhode Island insurance risk

Insurance is the single most volatile risk in Rhode Island condo documents. The state is almost entirely coastal — Narragansett Bay, Aquidneck Island, and South County — and exposed to hurricanes, storm surge, nor'easters, and accelerating sea-level rise.

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Premiums in Newport and Washington counties have risen 25–40% over five years, carriers have exited or entered receivership, and those counties rank among the top US regions for non-renewals. The Rhode Island FAIR Plan (RIJRA) has absorbed thousands of displaced policies at premiums often 40–50% above the private market. Layered on top, §34-36.1-3.13 sets statutory coverage minimums and, since 2022 and 2025 amendments, shifts more of each loss onto unit owners. For a buyer, the master policy is both a risk document and a financing document.

What §34-36.1-3.13 requires

The association must carry property (master) insurance on the common elements against all risks of direct physical loss, in an amount net of deductibles not less than 80% of actual cash value at each renewal, plus liability insurance. Proceeds are payable to an insurance trustee or the association, held in trust for owners and lienholders. Confirm the master policy meets the 80%-ACV floor; coverage below it is both a statutory shortfall and a financing risk.

The coastal market: non-renewals and the FAIR Plan

The lead story is market stress. Carriers have stopped writing or non-renewed coastal Rhode Island risks, and many associations now rely on the Rhode Island Joint Reinsurance Association (RIJRA) — the state's FAIR Plan — at materially higher cost and narrower coverage. A FAIR Plan placement usually signals the private market would not write the building. Read the carrier, identify any FAIR Plan placement, and ask the board about non-renewals or carrier changes in the last several years.

Deductibles and the 2022 / 2025 amendments

Rising wind and named-storm deductibles are pushing repair cost onto owners. Since 2022, post-deductible repair cost is a common expense, and where the association insures individual units, owners must carry coverage up to the master deductible. Since 2025 (S0507 / Ch. 178), the association must give 30 days' notice before increasing the master deductible. A deductible above roughly 5% of coverage can also threaten conventional financing under Fannie Mae and Freddie Mac standards — read the deductible structure carefully.

Flood is separate — and essential here

Flood is not covered by standard master or HO-6 policies. Many Rhode Island units sit in FEMA A or V flood zones, and historic low-elevation neighborhoods in Newport and Providence face surge and sea-level-rise exposure. Confirm whether the common elements carry NFIP or private flood coverage, whether it is bundled into dues, and whether your unit needs its own flood policy. Review your HO-6 loss-assessment limit against the master deductible and any uninsured exposure.

Rhode Island legal references

Informational only. Not legal advice. Always confirm against current statute and counsel.

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Reviewer's checklist

  • Confirm the master policy meets the 80%-ACV minimum under §34-36.1-3.13
  • Identify the carrier and whether the policy is placed through the FAIR Plan (RIJRA)
  • Read the wind and named-storm deductibles and any storm-surge exclusions
  • Check whether the deductible exceeds ~5% of coverage (conventional-financing risk)
  • Ask about non-renewals or carrier changes in the last several years
  • Confirm whether any 30-day master-deductible-increase notice has been issued (2025 law)
  • Confirm whether the association insures individual units (triggers owner deductible coverage)
  • Confirm NFIP or private flood coverage on the common elements and whether it is in dues
  • Review your HO-6 loss-assessment limit against the master deductible
  • Read recent minutes for insurance-renewal, deductible, and assessment discussion

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Risk Intelligence

Get a Free Risk Report on Your Condo or HOA

Free, structured read of what's actually behind a fee change, an insurance renewal, or a pending assessment — with page citations you can verify. No cost, no obligation.

Expert Matching

Want help acting on what you found?

We can connect you with insurance brokers, realtors, and mortgage brokers who can help you respond to what your documents reveal.

  • Insurance broker
  • Realtor