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 lived 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 fire damage coverage in most policies. However, the bad news 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.

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. On the other hand, loss of use 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.

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 and 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 homeowner's 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 homeowner's 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 0.57. Check out our breakdown in the table below for a quick comparison of homeowners insurance companies in Hawaii.