In Hawaii, the homeownership rate is just over 58%, which is much lower than the U.S. national average rate of about 64%. Part of that is due to Hawaii’s high cost of living. The median property value in the state was $631,700 in 2018, compared to the U.S. average which was just $229,700 the same year.
Hawaii is one of the most beautiful states, with warm sandy beaches, clear blue waters and lush mountain ranges. But because it’s an island, many homes in Hawaii are at risk of flood, storm and even earthquake damage. Having the right home insurance policies can protect your home and your belongings from certain events.
If you’re shopping for home insurance in Hawaii, there are a few things you should consider. First, decide how much insurance coverage you need. Also think about purchasing add-on coverages, like flood and earthquake insurance. Lastly, you’ll want to pick a deductible that you can comfortably afford to pay out-of-pocket.
Best home insurance companies in Hawaii
To simplify your insurance shopping experience, we put together a list of the best home insurance companies in Hawaii. These providers were rated highly in J.D. Power’s 2019 U.S. Home Insurance Study. We also looked at their ratings for overall satisfaction, policy offerings, price, customer service and claims handling. The top providers are:
- Farmers: Farmers received a 3-star rating from J.D. Power, and has excellent coverage options, discounts and generally good customer service. Farmers also sells auto, life, business, motorcycle and umbrella insurance.
- Allstate: Allstate also has a 3-star rating from J.D. Power, but this company is known for its online and mobile tools, as well as its affordable policies. You can also get auto, renters, motorcycle, life, identity theft insurance and more from Allstate.
- Liberty Mutual: If you’re buying home insurance for the first time, Liberty Mutual’s online resources and helpful agents can simplify the process. They also offer auto, life, condo, landlord, pet, critical illness insurance and more.
We also looked to see how these companies scored on other rating platforms, including AM Best for financial strength and BBB for customer reviews. The results are in the table below.
|J.D. Power||AM Best||BBB|
|Liberty Mutual||2/5 stars||A||A+|
Average homeowners insurance cost in Hawaii
In the Aloha State, homeowners pay an average of $1,102 per year, which is slightly less than the U.S. national average of $1,211. However, some Hawaiians will pay more or less for their home insurance based on a number of factors. For instance, your age, credit score and marital status all contribute to your rate.
Additionally, every insurance provider charges a slightly different rate for coverage. For instance, we got a sample quote from Liberty Mutual, for a single 30-year-old female living in Honolulu. The rate for a $400,000 home with $500,000 in dwelling coverage and liability coverage was $1,397 per year.
Unfortunately, you won’t be able to get an online quote from Farmers or Allstate. Farmers sells home insurance in Hawaii through Hawaii Insurance Consultants, so you’ll have to fill out their online form to get a quote directly. To get a quote from Allstate, you’ll need to find an agent in your area and call or visit their office.
In the table below, we compared the average cost of home insurance in Hawaii to the closest state-California.
Because Hawaii is an island, it doesn’t have any bordering states. California is the closest one, but it’s still nearly 2,500 miles away. The cost of home insurance in Hawaii is about $100 more expensive than in California. Hawaii has a higher risk of severe weather, tsunamis and other storms because it’s in the middle of the ocean. Hawaii also has a number of active volcanoes, which can cause unexpected earthquakes and eruptions.
Home insurance coverage options in Hawaii
Home insurance in Hawaii usually comes with standard coverage. This includes:
- Dwelling insurance: Dwelling insurance covers the exterior of your home, including any attached structures, like a garage or porch.
- Personal property insurance: Personal property coverage protects the items inside your home, like furniture and clothing.
- Liability insurance: Liability insurance covers your legal fees if you get sued for bodily injury or property damage.
- Medical payments insurance: If a guest gets injured in your home, medical payments coverage will help pay for their medical costs.
- Loss of use insurance: Loss of use insurance, also called additional living expenses, will pay for hotel, food, laundry and parking costs if your home is damaged in a covered event and you have to vacate it for a period of time.
All home insurance policies include hazard insurance, which is the portion of your policy that covers damage due to extreme weather and natural disasters. However, there are certain risks that homeowners in Hawaii face that require extra coverage. For example, flooding and earthquakes can happen on any island in Hawaii. To protect your home and your belongings, it’s a good idea to purchase separate flood insurance and earthquake insurance.
Common causes of home insurance losses in Hawaii
The most common causes of home insurance claims in Hawaii are floods, earthquakes, wildfires and hurricanes. In October 2006, two earthquakes-a 6.7 and 6.0 magnitude-struck Hawaii’s Big Island just a few minutes apart. The earthquake damaged 1,173 homes, and left 29 homes unlivable.
In 2019, a large brush fire in Maui burned an estimated 10,000 acres and displaced 600 people. Every year, the Hawaiian islands experience wildfires in the dry season, especially around heavily forested areas. Because of that, having adequate insurance coverage for your home is important.
Frequently asked questions
What is the best homeowners insurance in Hawaii?
There isn’t one homeowners insurance company in Hawaii that is the best for everyone. Each provider has their strengths and weaknesses, so it’s up to you to find a company that meets your specific needs.
How do I get homeowners insurance in Hawaii?
To get homeowner insurance in Hawaii, start by finding a few providers in your area and reach out for a quote. You’ll be asked to submit some information about yourself and your home. If you’re buying home insurance for the first time, we recommend working with an agent to make sure you’re getting enough coverage for your home and your belongings. Once you choose your coverages and apply discounts, you’ll sign the policy and start your coverage.
How much does homeowners insurance in Hawaii cost?
On average, homeowners insurance in Hawaii costs $1,102 per year, but every homeowner pays a slightly different rate.
What types of home insurance do I need in Hawaii?
If you live in Hawaii, you’ll need basic insurance (dwelling, personal property, liability, medical payments and loss of use coverage). However, you’ll also benefit from having a flood insurance and earthquake insurance policy.