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Landlord Insurance Rhode Island
Last updated: May 30, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Landlord insurance in Rhode Island is a specialized insurance package tailored for rental property owners across the Ocean State. Whether you own a single Providence apartment or multiple rental units throughout Rhode Island’s towns, landlord insurance is essential to safeguard your investment and manage risks unique to this state.
Unlike standard homeowners insurance, landlord insurance policies in Rhode Island address the distinct challenges faced by landlords, including tenant-related liabilities and property-specific risks in the region. Understanding the key components of a Rhode Island landlord insurance policy will help you protect your property and save money while meeting local lender requirements.
Insurance costs are rising in Rhode Island, with premiums up more than 25% in the last 18 months, directly impacting your rental income. Through extensive analysis of landlord insurance policies in Rhode Island, we find many landlords pay about 27% more than needed due to working with non-specialized agencies unfamiliar with the Rhode Island rental market.
This is often because general insurance agents lack focus on landlord insurance in Rhode Island or have partnerships that incentivize higher premiums. To tackle this, we developed the OfferMarket Insurance platform, allowing Rhode Island landlords to quickly shop 40+ insurance carriers and find the best landlord insurance coverage at competitive rates. Our local Rhode Island insurance specialists review every quote to ensure it fits your risk profile and lender criteria, saving our clients thousands of dollars monthly.
What risks does Landlord Insurance cover?
A thorough landlord insurance policy in Rhode Island typically includes these coverages:
🏠 Property insurance
⚖️ General liability insurance
💸 Business interruption insurance
🌊 Flood insurance (mandatory if property is in a Rhode Island flood zone)
Property Insurance
Rhode Island landlords face property damage risks from storms, freezing winters, or accidental damage common in coastal New England. Property insurance protects your building from losses caused by various perils and may cover tenant relocation expenses if the property becomes uninhabitable during repairs.
There are three Rhode Island-specific property insurance forms: Basic Form, Broad Form, and Special Form, each covering a different set of perils.
Basic Form Perils
The most affordable policy covers fundamental perils including:
🔥 Fire
🌩️ Lightning
💥 Internal explosion
Extended Coverage (EC) Perils
The mnemonic WCcSHAVVER helps recall extended perils Rhode Island landlords can add to their Basic Form policy:
🌬️ Windstorm (important in coastal Rhode Island)
🦹♂️ Civil commotion
🔥 Smoke damage (non-fire origin)
🌨️ Hail
✈️ Aircraft impact
🚗 Vehicle damage
🌋 Volcanic action (rare in Rhode Island)
💥 Explosion
❗ Riot
V&MM represents vandalism and malicious mischief, common risks in urban areas like Providence.
Broad Form Perils
Known as BIG AFFECT, Broad Form covers additional Rhode Island landlord risks such as:
🥷 Burglary damage
🧊 Ice, sleet, snow weight (especially relevant in Rhode Island winters)
🪟 Glass breakage
🚰 Accidental water or steam discharge
🧊 Freezing objects
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder
Special Form Peril
The most comprehensive Rhode Island landlord insurance, the Special Form (DP-3), covers all direct physical losses except specific exclusions like:
🌊 Flooding (requires separate Rhode Island flood insurance)
🌎 Earthquake (rare, but endorsement available)
🤡 Intentional damage
⚠️ Building code enforcement costs
🔌 Power interruption outside property
🇺🇸 Government seizure
General Liability Insurance
General liability in Rhode Island landlord policies protects against tenant or visitor injuries and damages to third-party property. Most Rhode Island landlord insurance covers $100,000 to $1,000,000 per incident and $1,000,000 to $2,000,000 annually.
If a tenant trips on icy steps in Providence or a contractor is injured on-site, general liability insurance covers medical bills and legal fees.
🚑 Injury at property
⚖️ Lawsuits
Business Interruption Insurance (Loss of Rent)
Landlords in Rhode Island face lost rental income risks if tenants must vacate due to insured damage like storms or fire. Business interruption insurance covers lost rent during repairs, typically costing about $1 per $1,000 of annual rental income — affordable protection for your Rhode Island rental’s cash flow.
Flood Insurance
Rhode Island rental properties in FEMA-designated flood zones must carry flood insurance. Lenders require flood certification, which is common in coastal and low-lying areas such as Newport or Warwick.
We recommend Rhode Island landlords obtain up to $250,000 in flood coverage through the National Flood Insurance Program (NFIP). Flood insurance is a separate policy from landlord insurance, and understanding this distinction is critical for Rhode Island property investors.
Landlord Insurance for DSCR Loans in Rhode Island
If you’re financing your Rhode Island rental property with a DSCR loan, be aware of strict insurance requirements that affect your loan qualification and cash flow. Getting competitive Rhode Island landlord insurance tailored for DSCR loans helps maximize your loan amount and rental profits.
| DSCR Loan Insurance Requirement | Mandatory for Rhode Island Properties |
|---|---|
| Property Insurance | Yes |
| General Liability Insurance | Yes |
| Business Interruption Insurance | Yes |
| Mortgagee Clause | Yes |
| Lender as Additional Insured | Sometimes |
Use our Rhode Island DSCR loan calculator to see how insurance impacts your rental’s financials.
How much does landlord insurance cost in Rhode Island?
The cost of landlord insurance in Rhode Island depends on several factors unique to the state:
Location
Insurance premiums in Rhode Island reflect historical losses in local markets and repair costs that vary from Providence to coastal areas like Newport. Coastal exposure and winter weather significantly influence pricing.
Property Insurance Type
| Property Insurance Type | Cost |
|---|---|
| Basic Form | $ |
| Basic Form with Extended Coverage | $$ |
| Broad Form | $$$ |
| Special Form | $$$$ |
Dwelling Coverage
Dwelling coverage—the amount you insure your property for—is the biggest factor affecting your Rhode Island landlord insurance premium. Insuring at full replacement cost value is strongly recommended to avoid coinsurance penalties.
| Dwelling Coverage Type | Cost |
|---|---|
| Actual Cash Value | $ |
| Functional Replacement Cost | $$ |
| Replacement Cost Value | $$$ |
Deductible
💡 Pro tip: The higher your deductible, the lower your annual premium.
| Deductible | Premium |
|---|---|
| $1,000 | $$$$$ |
| $2,500 | $$$$ |
| $5,000 | $$$ |
| $7,500 | $$ |
| $10,000 | $ |
Claim Frequency and Severity
Rhode Island insurers assess both your personal claim history and the specific property’s claim record. Frequent or severe claims, especially related to winter weather damage, water leaks, or storms common in Rhode Island, will increase premiums or lead to coverage restrictions.
💡 Pro tip: Consider a higher deductible and be cautious about filing claims. Obtain insurance quotes early during your Rhode Island property evaluation to understand insurance costs and claim risks.
Crime Score
Rhode Island rental properties in higher-crime areas like parts of Providence or Pawtucket tend to have higher landlord insurance premiums. Crime scores based on local crime data influence risk assessment and pricing.
💡 Pro tip: Research crime rates before purchasing. Install security measures and compare multiple carriers to get competitive Rhode Island landlord insurance quotes.
Property Condition
The condition of your Rhode Island rental affects your insurance costs. Well-maintained properties with modern systems typically get better rates, while older properties or those with deferred maintenance face higher premiums.
💡 Pro tip: Keep your Rhode Island rental in good repair, upgrade critical systems, and document improvements to reduce insurance costs.
How to protect your rental property
While landlord insurance is a crucial safeguard for Rhode Island rental property owners, combining it with proactive management strategies will strengthen your investment protection.
Tenant Screening
In Rhode Island’s rental market, thorough tenant screening is essential. We recommend running credit reports and background checks on every adult applicant. Establish clear minimum credit score requirements and disqualify applicants with problematic histories, consistent with Rhode Island tenant laws. Avoid exceptions unless you secure compensating factors such as higher security deposits or a personal guarantor with solid credit and clean background.
Regular Maintenance
Regular inspections are key to preventing small issues from escalating into costly repairs, especially given Rhode Island’s damp climate and seasonal weather changes. Conduct quarterly checks focusing on potential water leaks, roof integrity, and mold prevention. Keep detailed records of maintenance and improvements, sharing them with your Rhode Island insurance provider to help lower premiums.
Tenant Maintenance Education
Educate your Rhode Island tenants on basic upkeep, including how to replace air filters, shut off the main water valve in emergencies, and keep faucets dripping during freezing temperatures to avoid pipe bursts. Proactive tenants reduce the risk of avoidable damage and insurance claims.
DP-3 Insurance
DP-3 insurance, or special form coverage, provides Rhode Island landlords with the broadest protection by covering losses on a replacement cost basis. This policy is considered the gold standard for rental property insurance in Rhode Island, offering extensive coverage beyond standard forms.
What is coinsurance?
Coinsurance means you must insure your Rhode Island rental property to a certain percentage of its replacement cost (usually 80%). Failing to meet this requirement results in you paying a portion of any claim beyond your deductible.
Coinsurance formula:
If insurance carried is less than required:
(Insurance Carried ÷ Insurance Required) × Loss = Claim payment - Deductible
Example:
You own a Rhode Island rental with a $200,000 replacement cost but only insure it for $100,000, and have a $5,000 deductible. After a storm causes $50,000 damage:
($100,000 ÷ $200,000) × $50,000 = $25,000 - $5,000 = $20,000 insurer payout.
You would be responsible for the remaining $30,000, underscoring the importance of insuring your property at full replacement cost to avoid coinsurance penalties.
Landlord insurance markets
Wherever your rental property is located, we’ve got you covered.
Landlord Insurance Alabama
Landlord Insurance Alaska
Landlord Insurance Arizona
Landlord Insurance Arkansas
Landlord Insurance California
Landlord Insurance Colorado
Landlord Insurance Connecticut
Landlord Insurance Delaware
Landlord Insurance Florida
Landlord Insurance Georgia
Landlord Insurance Hawaii
Landlord Insurance Idaho
Landlord Insurance Illinois
Landlord Insurance Indiana
Landlord Insurance Iowa
Landlord Insurance Kansas
Landlord Insurance Kentucky
Landlord Insurance Louisiana
Landlord Insurance Maine
Landlord Insurance Maryland
Landlord Insurance Massachusetts
Landlord Insurance Michigan
Landlord Insurance Minnesota
Landlord Insurance Mississippi
Landlord Insurance Missouri
Landlord Insurance Montana
Landlord Insurance Nebraska
Landlord Insurance Nevada
Landlord Insurance New Hampshire
Landlord Insurance New Jersey
Landlord Insurance New Mexico
Landlord Insurance New York
Landlord Insurance North Carolina
Landlord Insurance North Dakota
Landlord Insurance Ohio
Landlord Insurance Oklahoma
Landlord Insurance Oregon
Landlord Insurance Rhode Island
Landlord Insurance South Carolina
Landlord Insurance South Dakota
Landlord Insurance Tennessee
Landlord Insurance Texas
Landlord Insurance Utah
Landlord Insurance Vermont
Landlord Insurance Virginia
Landlord Insurance Washington State
Landlord Insurance West Virginia
Landlord Insurance Wisconsin
Landlord Insurance Wyoming
💡 Pro tip: Rhode Island’s coastal location and older housing stock make competitive landlord insurance quotes more complex. Providing up-to-date inspection reports and maintenance records when requesting quotes can help secure better coverage and pricing.
Best Landlord Insurance
When shopping for landlord insurance in Rhode Island, you have many options. Your ideal choice depends on the risks you’re willing to accept, your budget, and how competitive your insurance shopping is. We recommend a comprehensive landlord insurance policy including property insurance, general liability, business interruption, and flood insurance if your property is in a flood zone.
Working with a Rhode Island-focused insurance agency that accesses multiple carriers will maximize your chances of getting the best coverage at the lowest price. Start your Rhode Island landlord insurance quote with OfferMarket Insurance today!
Landlord Insurance Guidelines
Below are common landlord insurance guidelines specific to Rhode Island and DSCR loans. These reflect best practices for risk management:
Property Coverage
| Property Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Use the greater of 80% of Replacement Cost or Loan Amount; if Replacement Cost < Loan Amount, use Replacement Cost |
| Deductible | $5,000 |
| Accepted Policy Types | Dwelling Fire (“Special Form”); Commercial Property (“Basic” or “Special Form”) |
| Cancellation | 30-Day notice |
| Exclusions | No windstorm/hail or named storm exclusions |
| Lender’s Designation | Mortgagee |
General Liability Coverage
| General Liability Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Minimum $500,000 per occurrence; $1,000,000 aggregate |
| Deductible | $1,000 |
| Coverage Details | Occurrence basis |
| Cancellation | 30-day notice |
| Lender’s Designation | Additional Insured |
Business Interruption Insurance
| Business Interruption Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | One year of effective gross rental revenue |
| Coverage Details | Actual Loss Sustained basis acceptable |
| Cancellation | 30-day notice |
| Lender’s Designation | Mortgagee |
Flood Insurance
| Flood Insurance | Requirement |
|---|---|
| Mandatory if in flood zone | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Greater of $250,000 or loan balance |
| Cancellation | 30-day notice |
| Lender’s Designation | Mortgagee |
Additional Details
Mortgagee Clause
OfferMarket Capital LLC ISAOA/ATIMA
627 S Hanover St
Baltimore, MD 21230
Condos
Blanket policies may be used if they cover individual units. The homeowner association in Rhode Island maintains “all risk” coverage for common areas and fixtures on a replacement cost basis.
PUDs (Planned Unit Developments)
The project’s blanket policy may cover individual units. The homeowner association typically maintains “all risk” coverage for common areas and equipment at replacement cost.
Instructions
Use ACORD forms for compliance. Send insurance certifications, invoices, or paid receipts at least 24 hours before closing. Final policy documents should be provided within 60 days after closing. Notify your insurer if the property becomes vacant and obtain a vacancy permit if needed.
Frequently Asked Questions
How does OfferMarket Insurance work for Rhode Island landlords?
OfferMarket Insurance is a rate-shopping platform specialized in landlord insurance for Rhode Island rental properties. We shop multiple carriers to find the best coverage meeting your needs and lender guidelines, quality-controlled by our Rhode Island insurance experts.
Do I need a Builders Risk Policy?
Not for standard landlord insurance. Builders risk coverage is only needed if rehabbing or constructing new rental properties in Rhode Island.
Can I use Functional Replacement Cost instead of Replacement Cost Value?
This depends on your lender’s guidelines in Rhode Island. Some lenders allow Functional Replacement Cost, though others may require Replacement Cost Value coverage based on the effective age of your Rhode Island property.
Why does the lender need to be an Additional Insured?
While not always required, Rhode Island DSCR lenders often request to be named Additional Insured. This extends liability protection to the lender beyond their mortgagee rights, providing them with added coverage during your insurance policy term.
Can I use my preferred insurance agent for my Fix and Flip loan and DSCR loan?
Yes, as long as your Rhode Island insurance agent can provide competitive landlord insurance coverage that meets lender guidelines. However, agents specializing in personal lines may struggle with commercial landlord insurance requirements common in Rhode Island DSCR loans.
Clients working with OfferMarket Capital are encouraged to use OfferMarket Insurance to save time and get the best rates.
Can I pay for insurance on the HUD-1/ALTA settlement statement at closing?
Yes. Rhode Island DSCR loan guidelines require landlord insurance to be paid in full at closing, either through the settlement statement or directly via your insurance agent with proof of payment.
Can I escrow my insurance premium?
Yes, many Rhode Island lenders require escrow for insurance premiums as part of the monthly mortgage payment, ensuring premiums are paid timely.
Can I receive a refund if I cancel my landlord insurance policy?
Yes. Rhode Island insurance laws require carriers to refund unearned premiums on a pro-rated basis. Make sure your new policy is active before cancelling your current one and inform all parties involved to avoid coverage gaps.
What is an AM Best Rating?
AM Best is a financial rating agency that assesses the financial strength of insurance companies. Rhode Island landlords should choose carriers rated A- VIII or better to ensure policy reliability.
What is builders risk insurance?
Builders risk insurance protects Rhode Island rental properties and materials during construction or renovation phases. It covers perils like fire, windstorm, theft, and vandalism for properties under active development.
When does builders risk insurance terminate?
Coverage ends when the property ownership transfers, construction completes, the property is occupied, or the insured abandons the project. Most policies are on a Completed Value Form equal to the property’s after-repair value (ARV).
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