Homeowners insurance in Hawaii

A guide to homeowners insurance in The Aloha State.

Kara McGinley

Kara McGinley

Published September 28, 2020

KEY TAKEAWAYS

  • The average cost of homeowners insurance in Hawaii is $1,102, according to the NAIC

  • When deciding on policy coverage, Hawaii residents should consider the state’s earthquakes and tropical storms

A home insurance policy provides protection for your house, personal property, and assets in the event the unexpected happens. If you’re one of the 58% of Hawaii residents who owns a home, you may want to consider a comprehensive homeowners insurance policy to ensure you’re protected from the Aloha State’s many natural hazards.

The average cost of homeowners insurance in Hawaii is $1,102 per year, according to the National Association of Insurance Commissioners, but homeowners insurance policy premiums can differ greatly from home to home. Your rates will be directly impacted by your home’s condition and style of build, its location, your credit and claims history, and your policy deductible amount. Rates also vary from company to company for the same level of coverage, which is why it’s so important to compare policies from different companies.

To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in Hawaii. We also compared the average cost of different amounts of homeowners insurance coverage and created a guide with considerations Hawaii homeowners should keep in mind when shopping for insurance.

Compare Hawaii quotes here

IN THIS ARTICLE

The 5 best homeowners insurance companies in Hawaii

A great homeowners insurance company is financially stable, has dependable customer service, affordable coverage, flexible policy options, and high quality discounts.

Using those benchmarks, we determined the following five companies were the best homeowners insurance companies in Hawaii. Read about our methodology here.

Best company for an affordable quote: Allstate

Allstate is a good choice if you’re a Hawaii homeowner looking for an affordable price point. You can easily get a quote online by typing in a few details about your home. In addition to low cost policies, Allstate also offers an array of discounts so homeowners can save even more on their premiums.

Read our full review of Allstate here

Best company for new homebuyers: State Farm

If you’re a first-time home buyer looking for a helpful homeowners insurance company, you may want to consider State Farm. State Farm has a useful website with educational resources to help you understand how homeowners insurance works, a quick and easy quoting process, and a mobile app where you can pay your bill and file claims.

Read our full review of State Farm here.

Best for high-value homes: AIG

If you live in a high-value home in Hawaii, AIG may be for you. AIG offers a “Private Client Group” package, which is ideal for high-value homes. The package contains all the same primary coverage that a standard homeowners policy does, but with higher limits of liability and more flexible loss settlements than you’d find in a policy through a standard carrier.

Read our full review of AIG here

Best company for U.S. military & their families: USAA

Military veterans in Hawaii or current members of the military looking for homeowners insurance may want to consider USAA. USAA only sells policies to current and former members of the military and their families. With its A.M. Best rating of an A++, USAA has some of the highest financial strength ratings out of any company we’ve reviewed. USAA also offers a variety of discounts from good payment history discounts to multi-policy discounts.

Read our full review of USAA here

Best company for policy discounts: Liberty Mutual

Homeowners looking to save may want to consider Liberty Mutual. Liberty Mutual provides homeowners with customizable and personalized policies. The insurer also offers a range of discounts, like early shopper discounts, new roof discounts, and multi-policy discounts. You can also save on your premiums by switching to paperless billing and enrolling in automatic payments.

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Best homeowners insurance companies in Hawaii

Here’s a look at the 5 most popular insurers in Hawaii by market share, along with each company’s respective rating with A.M. Best, J.D. Power, and Policygenius.

CompanyA.M. Best RatingJ.D. Power ScorePolicygenius Rating
AllstateA+3/57.4/10
Heritage InsuranceNot ratedNot ratedNot rated
State FarmA++4/58/10
Tokio Marine GroupNot ratedNot ratedNot rated
USAAA++5/58.7/10

Average cost of home insurance in Hawaii by coverage amount

The average cost of homeowners insurance in Hawaii will also differ considerably based on the amount of insurance you have for your home. Below is the average homeowners insurance rate in Hawaii for five different levels of coverage, according to the most recent data from the NAIC.

Coverage AmountAverage Cost
$175,000-$199,999$ 633
$200,000-$299,000$ 797
$300,000-$399,000$ 977
$400,000-$499,000$ 1,160
Greater than $500,000$ 1,631

Guide to homeowners insurance in Hawaii

Common causes of home insurance loss in Hawaii

One of Hawaii’s state nicknames is The Paradise State, and you can certainly understand why. That said, the islands are vulnerable to a variety of natural disasters, from volcanic eruptions to tropical storms to hurricanes.

Homeowners insurance typically covers hurricane and tropical storm damage, however in Hawaii hurricanes may be excluded depending on your insurance company. If hurricanes are excluded from your policy coverage, you may want to look into purchasing coverage separately through specialty insurers.

Hawaii has multiple active volcanoes, and some residents are at risk of damage from volcanic activity. Homeowners insurers may cover damage from lava flow, but you should check with your insurance company to learn the details and coverage limits when it comes to volcanoes. If the lava results in a fire, your homeowners insurance may also reimburse you for the fire damage that the lava caused.

In addition to lava, Hawaii is at risk for wildfires, with around 1,107 fires burning in total from the years 2000 to 2008. Homeowners insurance does cover fire damage, but if you live in a fire-prone area you may want to consider purchasing a replacement cost homeowners policy so your home is fully covered regardless of its price.

Does homeowners insurance cover earthquakes in Hawaii?

The active volcanoes in Hawaii make earthquakes a frequent occurrence, with the hazard causing $2.9 million in annualized property losses per year. A standard homeowners insurance policy does not cover earthquakes, so Hawaii homeowners may want to consider purchasing an earthquake insurance policy in addition to their homeowners policy. If an earthquake causes a mudslide or severe mudflow that damages your home, earthquake insurance may cover that damage as well.

Does homeowners insurance cover flooding in Hawaii?

No, homeowners insurance does not cover flooding, tsunamis, or landslides in Hawaii or any of the other 49 states. Hawaii residents are at severe risk for flooding, with floods occurring once every 6.7 days on average. Because Hawaii is at such high risk of flooding, tsunamis, and landslides, residents may want to consider supplementing the gap in coverage by purchasing a flood insurance policy.

Flood insurance can typically be purchased through the same insurance company that insures your home. Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.

Hawaii Department of Insurance

The Hawaii Department of Commerce and Consumer Affairs is a valuable resource both for Hawaii homeowners purchasing coverage for the first time or for those who are already insured. The DCCA website has helpful information about what to prioritize when selecting your coverage, preparing for natural disasters, and filing complaints.

What if I can’t get homeowners insurance?

Homeowners insurance companies can cancel your insurance for a number of reasons — maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.

If you’re struggling to find coverage in Hawaii, you can get last-resort coverage via a Hawaii Fair Access to Insurance Requirements (FAIR) Plan. The Hawaii Fair Plan is offered by The Hawaii Property Insurance Association (HPIA). The Hawaii State Legislature created HPIA to provide basic homeowners insurance coverage for people who cannot purchase a policy in the private market, specifically residents who live near the ongoing volcanic eruption areas of Lava Zones 1 and 2.

HPIA states that they have some of the highest premium prices in all of Hawaii, and recommend reshopping for insurance every year in order to find more comprehensive coverage than what they offer.

Not where you live? We've got you covered, check out our guide to homeowners insurance in your state

Insurance Editor

Kara McGinley

Insurance Editor

Kara McGinley is an Insurance Editor at Policygenius. She previously worked as a freelance writer and a copywriter for various startups. Her work can be found in Teen Vogue, The Culture Crush, Mask Magazine, and more.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

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