Homeowners Insurance in Hawaii


Helping you find the best homeowners insurance in Hawaii.





Finding the Best Homeowners Insurance in Hawaii



Despite as many as 85% of American homeowners carrying some form of home insurance, a surprising number of homeowners in Hawaii are either uninsured or underinsured. As idyllic as it may be, Hawaii’s location, surrounded by the North Pacific on all sides, makes it particularly vulnerable to severe weather such as hurricanes or floods, which can cause millions of dollars in property damage. This is the last thing any homeowner needs — especially considering that the average cost of a home in the Aloha State is over $600,000. On top of this, the higher costs of living compared to life in the continental United States quickly add up and investing in homeowners insurance to ensure that your assets and valuables are well-protected at all times is indeed a wise choice. However, picking the best insurance involves a bit more work than simply finding and settling on a cheap homeowners insurance plan and you’re going to have to do a bit of homework to find coverage that’s both affordable and meets your needs. Right off the bat, you’re going to need to start by figuring out exactly what your needs are, after which you’re going to want to shop around and compare Hawaii homeowners insurance quotes. To help make the overall insurance purchase process easier for you, we’ve outlined a few key areas surrounding homeowners insurance in Hawaii and answered some common questions homeowners just like you might have.
Hawaii Homeowners Insurance Cost Broken DownPrice
Yearly Cost of Homeowners Insurance in Hawaii$1,178.00
Costs Per Month for Homeowners Insurance in Hawaii$98.17


How Much is Homeowners Insurance in Hawaii

Just like anywhere else, the price of homeowners insurance varies depending on several factors like where you live, the type of home you live in, when it was built, and the insurance company itself. As a ballpark figure, the average cost of homeowners insurance in Hawaii is roughly $1,083 a year, which is just under the national average. As mentioned earlier, Hawaii’s location and the fact that it’s a Pacific island chain makes it susceptible to hurricanes, floods, and even tsunamis, which might make homeowners insurance more expensive. In addition to hurricanes and floods, Hawaii is also one of the only states in America to feature active volcanoes. The good news is that most of the damage caused by eruptions falls under coverage for fire damage in most policies. The bad news, however, is that these policies typically won’t cover damages caused by earth movements during eruptions, requiring you to purchase additional coverage. While where you live in Hawaii can also affect the rates you pay, the insurance prices in the cheapest and most expensive cities don’t vary by much. As an example, Hilo, Kahului, and Kihei are the most expensive cities for homeowners insurance in Hawaii, with residents paying an average of $1,095 annually. However, homeowners in cities like Halawa, Waianae, and Nanakuli, the cheapest city for homeowners insurance in Hawaii, pay just slightly less with an average premium cost of $1,066 per year. Ultimately, the rate you pay will depend on the type and amount of coverage you need. In any case, we recommend sourcing a few different plans that cover the full value of your home and meet your coverage needs before taking a closer look at rates.



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Hawaii Homeowners Insurance Laws

Homeowners insurance is not a legal requirement in the state of Hawaii. However, some lenders and mortgage providers may impose homeowners insurance requirements when mortgaging a home in Hawaii. This ensures that both their investment (mortgage) and your home (collateral) are protected if your home and any on-site facilities are damaged or destroyed by a covered event. In any case, you should consider purchasing homeowners insurance in Hawaii regardless of whether this is required by your lender simply for the reasons mentioned earlier on. As far as coverage goes, most homeowners insurance policies will cover damages caused by perils, such as fires, lightning, windstorms (excluding hurricanes), and damage caused by vandalism, vehicles, and riots, as well as losses or damages to personal belongings caused by a covered event. The most common type of homeowners insurance policy in the United States is known as an HO-3 policy. HO-3 insurance offers broad coverage for a range of events including those mentioned earlier. They don’t, however, cover damages for perils such as floods, surface water, tidal waves, hurricanes, landslides, or earthquakes — which is important to have when living in Hawaii. Therefore, it’s worth purchasing endorsements or specialized coverage in addition to a standard Hawaii homeowners insurance policy.

What Does Homeowners Insurance Cover in Hawaii

Building on the above, homeowners insurance in Hawaii covers, at minimum, damage caused by named perils like fires, lightning, vandalism, hail, and explosions. This basic coverage is known as an HO-1 policy, though many insurance companies no longer offer HO-1 as an option since most homeowners opt for more comprehensive coverage. Most homeowners insurance policies sold in Hawaii are based on HO-3 policies, and insurance providers often offer different coverage options on top of what’s covered as standard. The different options extend from full-value coverage, which incorporates a coverage limit up to the full replacement cost of the insured home, to personal property loss or damage, and loss of use coverage. As the name implies, personal property coverage covers any loss or damage to your personal belongings resulting from a covered event. Loss of use, on the other hand, covers (up to a specified limit) any additional living expenses faced by the insured to maintain their standard of living following a covered event that renders the house uninhabitable. Loss of use coverage, in particular, is a popular choice among residents of Hawaii, especially considering the fact that relocations after volcano eruptions or severe weather are not uncommon. While barebones HO-3 policies may be sufficient in other states, taking out additional coverage or specialized coverage is highly recommended and should be considered on a case-by-case basis when purchasing homeowners insurance in Hawaii.



Top Rated Homeowners Insurance Companies in Hawaii Based on Ratings

Finding the best homeowners insurance company in Hawaii can be a tricky endeavor, since what might be best for your neighbor might not necessarily be the best for you. This means that you’ll need to dig around and do a bit of research on the different companies offering homeowners insurance in Hawaii. A great place to start would be the Hawaii insurance division website which offers a list of licensed insurance companies in Hawaii, as well as a detailed description of their financial condition and insurance-related complaints. On a more consumer-based level, organizations like JD Power and the NAIC have compiled lists of the best and worst insurance companies in the state, making it easier to narrow down your choice. As far as consumer ratings go, USAA has consistently ranked as the top-rated homeowners insurance company in Hawaii, maintaining a 0.15 NAIC complaint index and a JD Power rating of 5 out of 5 for their coverage options, customer support, and overall customer satisfaction. On the other hand, out of all the leading homeowners insurance companies in Hawaii, Liberty Mutual fared the worst on the JD Power survey, with a rating of 2 out of 5, while Allstate had the highest NAIC complaint index at a 0.57. Check out our breakdown in the table below for a quick comparison of homeowners insurance companies in Hawaii.



How to Lower Homeowners Insurance in Hawaii

Compared to the last decade, the price of homeowners insurance in 2020 has risen substantially, along with rates in other parts of the U.S. Part of the reason behind this rise can be attributed to the growth in property values, which, in turn, increases the financial impact of natural disasters like hurricanes and volcano eruptions. Essentially, homeowners insurance providers in Hawaii are seeking to compensate for the increased losses by raising coverage rates. While feelings as to whether this upward trend will continue into 2021 are mixed, it’s understandable that homeowners would look for ways to lower the price of their homeowners insurance. Thankfully, discounts were, are, and always will be the best way to lower homeowners insurance in Hawaii and multi-policy discounts are some of the most common and easiest discounts homeowners in Hawaii can benefit from. In addition to simplifying things when making claims on multiple insurance policies, taking out different insurance policies with the same provider can save you a pretty penny on your insurance premiums, so one of the first places you should turn to when looking for quotes on homeowners insurance is any insurance companies you’re currently insured with. Furthermore, if you can afford it, many insurance providers offer discounted rates to clients who opt to pay their premiums in full or in advance. Nevertheless, all the discounts in the world won’t stop you from getting a raw deal on your homeowners insurance, so it’s essential that you compare homeowners insurance policies and companies before pulling the trigger.


Compare Homeowners Insurance in Hawaii Before Buying

With all the different factors and variables being taken into account by insurance companies when calculating premiums, no two quotes or rates will be the same. If you’re determined to find the most affordable and comprehensive coverage, shopping around for and comparing homeowners insurance is a must. To expand a little on what we mentioned above, insurance companies consider the type of coverage you’re after along with things like your credit rating, the value and location of your home, and your past claims history to determine how much of a risk you’ll be to insure before finally providing you with a quote. Regardless of how much they scrutinize your personal and property information, however, you’re by no means at their mercy and should be looking at them as much as they’re looking at you. Comparing homeowners insurance should involve more than just quotes and prices, you should be taking a look at factors such as an insurance provider’s customer satisfaction and complaints history, as well as their overall financial stability before making your decision. This extra bit of time and effort can not only save you money in the long run, but also saves you from any potential headaches, stress, and letdowns when it comes time to claim. Remember that your home in Hawaii is one of your biggest and most meaningful investments, so don’t risk it all by neglecting to properly compare homeowners insurance before making a decision.