Rising Insurance Costs Transform Coastal Real Estate in Rhode Island

March 31, 2025 - 13:14

It’s no secret that living near the water comes with its own set of challenges, but recent trends in insurance premiums are reshaping the landscape of coastal real estate in Rhode Island. In Newport County and throughout Aquidneck Island, homeowners and potential buyers are grappling with a significant increase in insurance costs, which have surged by 25% to 40% in recent months.

This steep rise in premiums is primarily attributed to heightened risks associated with climate change, including more frequent and severe storms, flooding, and other natural disasters. As a result, many homeowners are finding it increasingly difficult to afford insurance, which in turn affects their ability to buy or sell properties.

Real estate agents report that the rising costs are causing some buyers to reconsider their options, while current homeowners are feeling the squeeze as they navigate these financial challenges. This evolving situation is prompting discussions about the long-term implications for coastal communities and their housing markets.