Block Island residents discuss rising home insurance costs and flood risk management strategies

Concerns over rising home insurance premiums took center stage at the New Shoreham Coastal Resilience Committee meeting on February 5, 2025, as residents expressed frustration over escalating costs and limited coverage options.

Committee members discussed the alarming trend of increasing insurance rates, with one member revealing a staggering 45% hike in their policy renewal. This prompted questions about the underlying causes, with speculation ranging from general storm damage to broader market trends affecting the insurance industry. "What’s going on?" one member asked, highlighting the confusion surrounding the rationale behind these increases.

Renee, another committee member, noted that many residents have been pushed into the Massachusetts Fair Plan, which offers limited coverage and caps at one million dollars. This has raised concerns about whether homeowners can afford to rebuild their properties in the event of a disaster, especially as construction costs continue to rise.

The discussion also touched on the broader implications of natural disasters on insurance rates, with comparisons drawn to Florida's dramatic insurance landscape post-hurricanes. "If the natural disasters keep going up, then insurance premiums are gonna keep going up," one member stated, emphasizing the interconnectedness of these issues.

In a bid to address these challenges, the committee explored the potential benefits of the Community Rating System (CRS), which offers discounts on flood insurance premiums for residents engaged in resilience-building activities. Currently, New Shoreham is classified as a Class 8 community, allowing property owners to receive a 10% discount on their flood insurance.

As the meeting concluded, the committee recognized the need for further exploration of insurance options and potential guest speakers to provide insights into navigating the complex insurance landscape. The rising costs and limited coverage options remain a pressing concern for residents, underscoring the importance of ongoing discussions about coastal resilience and community preparedness.