Hawaii Homeowners Insurance Guide
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Hawaii Homeowners Insurance
Explore Hawaii Homeowners Insurance State Guides, Laws and Regulations before You Buy Insurance
The Aloha State is truly unique. Not only in its natural beauty, but it is also the only island state in North America. Located in the middle of the Pacific Ocean, the islands that make up Hawaii have a range of climate and terrain. Although known for its volcanic mountains, overflowing waterfalls and incredible beaches; Hawaii also has a bustling city atmosphere by way of Honolulu. In addition, the state also has great historic significance given the military base Pearl Harbor’s critical involvement in World War II.
Property owners in Hawaii love the state’s combination of picturesque scenery and historic significance. However, the island’s beauty unfortunately does come with a cost. Hawaii’s unique natural traits are the cause of many of the property risk Hawaiians must endure each year. Hurricanes, floods, volcanoes, earthquakes and a host of other natural disasters impact visitors and those that call the Aloha State home.
What Does Homeowners and Renters Insurance Cover, and How Much Does it Cost?
Given the amount of property risk inherent in Hawaii, the associated homeowners and renters insurance rates are rather modest. Hawaiians on average pay slightly below the country average for homeowners insurance, and slightly above the country average for renters insurance. This is an indication that although the risk of enduring natural disasters exists in the Aloha State, they don’t often reach catastrophic loss levels.
Average Homeowners and Renters Insurance Premium
| State | Homeowners | Renters |
| Hawaii | $1,102 | $185 |
| USA | $1,211 | $180 |
Source: Insurance Information Institute (2017)
The standard homeowners and renters insurance policies cover any property damage resulting from normal perils such as fire, vandalism, liability and several others. However, flood, earthquake and hurricanes are often times excluded. As such, Hawaiians should look to the private market to secure standalone coverage for these specific perils.
Which Property Insurance Carrier Should I Choose?
The Hawaiian property insurance market is highly concentrated with the top five carriers controlling close to 70% of the market. In addition, the largest carrier controls over 30% of the market. There is also little representation from regional carriers in the market, with the overwhelming majority being large national and international players. This certainly provides a sense of stability, given the financial strength of many of the national and international carriers. However, without much regional representation, property owners in the Aloha State may not find the unique, customizable experience and coverage local insurance companies tend to provide. That said, when reviewing which carrier to partner with, make sure to compare total packages, and reputation as it relates to a particular carrier paying its claims and being generally available.
Top 5 Home Insurance Carriers in Hawaii
| Company | Market Share |
| State Farm | 30.6% |
| Heritage Insurance | 12.8% |
| Tokio Marine Group | 11.7% |
| USAA Insurance Group | 7.0% |
| Allstate Corp. | 6.0% |
Source: Insurance Information Institute (2019)
The island state of Hawaii is certainly a destination most people would love to visit, let alone be able to call it home. Although its one of kind terrain and pleasant climate can cause quite a few natural disasters, it doesn’t have an outsized impact on homeowners and insurance rates. Ultimately, the potential for natural disasters and cost of property insurance are but small prices to pay for the Aloha State’s rare beauty.
Hawaii Regulating Agencies And References
