Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 05 - Personal Lines - Automobile and Homeowners Insurance
Part 13 - Property Insurance and Weather Related Claims (230-RICR-20-05-13)
Section 230-RICR-20-05-13.4 - Deductibles

Universal Citation: 230 RI Code of Rules 20 05 13.4

Current through September 18, 2024

A. Insurers are not required to include a deductible in residential property insurance policies. If a Hurricane Deductible is not included in the policy or is not applicable to a particular loss the policy may provide for application of a policy deductible. If an insurer chooses to include a deductible relating specifically to weather related events, the insurer must comport with the following:

1. Windstorm deductibles may not be included in residential property insurance policies.

B. The maximum hurricane deductible that can be offered and/or included in a residential property insurance policy is a deductible of five percent (5%) of the insured value of the dwelling (i.e. Coverage A).

C. Insurers may not offer optional hurricane deductibles in excess of five percent (5%).

D. Insurers may offer a flat dollar hurricane deductible in place of or in addition to a percentage deductible.

1. If a flat dollar deductible is offered, in place of or in addition to a percentage deductible, that total deductible may not exceed five percent (5%) of the insured value of the property.

E. All deductibles must provide for a premium credit that is actuarially supported.

F. The trigger of a hurricane deductible must be clearly stated and must be applicable only to losses due to a hurricane during the period commencing with the issuance of a hurricane warning for the applicable part of the state (as defined by §§ 13.4(F)(1) and (2) of this Part) by the National Weather Service and concluding 24 hours after the termination of the last hurricane warning for any part of the state. All terms are defined by the National Weather Service.

1. For the application of the hurricane deductible in Block Island, a loss is due to a hurricane when a hurricane results in hurricane force sustained winds in Block Island as reported by the National Weather Service.

2. For the remainder of the state, a loss is due to a hurricane when a hurricane results in hurricane force sustained winds anywhere in the state other than Block Island as reported by the National Weather Service.

G. If an insured incurs a loss from more than one hurricane in a calendar year, the insurer may only apply the hurricane deductible provided in the policy once for all hurricane occurrences in that calendar year. This provision applies whether or not the same policy is in force or a new policy has been obtained during the calendar year. For any calendar year in which a hurricane has occurred prior to the issuance of the policy, the insurer may obtain information on losses due to that hurricane (whether or not a loss payment was made) prior to the issuance of the policy and that information shall control in the application of the hurricane deductible to any other hurricanes in that calendar year.

1. If the amount of the loss in the first of multiple hurricanes in one calendar year is less than the hurricane deductible provided for in the policy, the insurer may at its option apply the remaining portion of the hurricane deductible or the all perils deductible to the subsequent loss(es).

2. To determine the amount to be applied to the deductible the insurer may require the insured to produce documentation of the first loss.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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