Best Homeowners Insurance Hawaii 2020

Last modified: November 23, 2020

Not too long ago, in the early 90s, Kauai, an island in Hawaii, was struck by a devastating hurricane by the name of Iniki. The hurricane resulted in over $2 billion in property damages. Much of this damage could have been avoided had more people opted for homeowners insurance in Hawaii. Nowadays, home insurance is considered an essential part of homeownership, and rightly so. Additionally, Hawaii is surrounded by the Pacific Ocean and has four active volcanoes, which makes homeowners insurance in Hawaii not a choice, but rather, a necessity.

But, like all things in life, not all homeowners insurance options come equal. To receive the most from your coverage, you have to find the best homeowners insurance in Hawaii. In this article, we will cover everything you need to know about purchasing home insurance in Hawaii.

Is Homeowners Insurance Required in Hawaii?

By law, homeowners insurance is not legally required by residents of Hawaii. That being said, lenders may require insurance on your home for the duration of the mortgage. The good news is there are many Hawaiian insurance companies that you can choose from when finding home insurance in the region.

When it comes to home insurance in Hawaii, there are multiple factors that you need to consider. You can use the Hawaii home insurance comparison table we post later in this article to find yourself the right fit. There are certain risks of living in Hawaii that require homeowners to get insurance. Some of the risks facing homeowners in Hawaii include earthquakes, hurricanes, and flooding, which can happen on any of the islands at any given time.

What Does Hawaii homeowners Insurance Cover?

The first question that many people ask when it comes to getting homeowners insurance in Hawaii is, “what does homeowners insurance cover?” Some of the options for home insurance coverage in Hawaii include dwelling coverage, medical payments insurance, loss of use insurance, and personal property insurance. Since all of these features vary depending on the insurer, it’s best to shop around to find the best fit for your needs.

Hawaii Home Insurance Prices by City

The rates of home insurance in Hawaii primarily depends on the city and area you reside in. Needless to say, you will have to pay more for the more expensive real estate in Hawaii and less for the cheaper real estate locations in Hawaii. So, what are the average yearly prices of home insurance in Hawaii?

In Honolulu, homeowners can expect to pay around $425 for home insurance yearly. At Ewa Beach, Royal Kunai, and Halawa, homeowners can expect to pay around $427 for home insurance yearly.

Common Causes of Home Insurance Losses in Hawaii

Hawaii is one of the states with the increased risks of the following:

  • Earthquakes
  • Volcano eruptions
  • Hurricanes
  • Flooding

These are just some of the reasons why purchasing earthquake insurance should be a top priority in Hawaii. This is often included as extra insurance coverage, but less than 12% of homeowners in Hawaii choose this additional feature in their home insurance policy in Hawaii.

How Much is Homeowners Insurance in Hawaii?

So, how much is homeowners  insurance in Hawaii? You might ask. The average rates for homeowners insurance in Hawaii are around $425/yearly. If you have a home that’s valued at $200,000, with $100,000 in liability coverage and a $1,000 deductible, then you can expect to pay $337 on a yearly basis. The home insurance premiums in Hawaii are based on a number of factors.

Who has the Cheapest Homeowners Insurance in Hawaii?

According to our research, Allstate offers the cheapest homeowners insurance in Hawaii, with homeowners having to pay just around $272 yearly. This is a lot lower than the average pricing of $425 annually.

Best homeowners Companies Hawaii

Company Best For Coverage Discounts Pricing
Liberty Mutual Homeowners Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $950/annually
First of Hawaii Homeowners Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $428/annually
Allstate Homeowners and renters Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $272/annually
AIG Homeowners and renters Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $1,083/annually
USAA Homeowners and renters Dwelling coverage

Loss of use

Personal liability

Personal belongings

Additional structure coverage

Other structures

Yes $2,112/annually
Hawaiian Homeowners Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $1,102/annually
Insurance and Guaranty Company Ltd. Homeowners Scheduled personal property coverage

Hurricane coverage

Debris removal

Trees and shrubs

Credit card and EFT

Yes $948/annually
State Farm Homeowners and renters Dwelling coverage

Liability protection

Personal property coverage

Guest medical protection

Optional Coverage

Yes $1,500/annually

 

*All rates given above are average. Rates may vary depending on a number of factors and your insurance provider.

 

Detailed Review

The following is a breakdown of these home insurance policies for homeowners in Hawaii:

1.      Liberty Mutual Hawaii

Liberty Mutual Hawaii has a good JD Power rating along with a good financial strength rating, which indicates that you do not need to worry when getting homeowners insurance from them. The insurance provider offers a great selection of discounts, but customers do complain of higher than average rates. Customer service and claims also receive positive reviews.

2.      Allstate Homeowners Insurance Hawaii

Allstate offers quality homeowners coverage along with great discounts, innovative tools, and even a dedicated local agent to help guide you through the entire process. Allstate provides several levels of homeowners coverage.

3.      First Insurance of Hawaii

First Insurance of Hawaii is a great choice for homeowners insurance in Hawaii. The best part is that you can save up to 40% if you bundle your home insurance and your auto insurance into one policy. First Insurance of Hawaii also offers plenty of coverage options for homeowners in Hawaii and enjoys positive customer service and claim handling ratings.

4.      Hawaiian Insurance and Guaranty

Hawaiian Insurance and Guaranty is a top-rated home insurance provider in Hawaii. The insurer has been awarded an A (exceptional) financial stability rating by AM Best, which is testament to their quality of service. The insurance provider also provides additional coverage options in the form of hurricane coverage, debris removal, credit card and EFT, and trees and shrubs. Depending on the year your home was built, security systems, construction type, and other factors, you can also avail some amazing discounts.

5.      USAA Homeowners Insurance Hawaii

USAA has earned a 5 out of 5 rating by JD Power, which is proof of its superior homeowners insurance in Hawaii. Apart from its high customer service and claim handling ratings, you also get access to some great discounts. The insurance provider offers many coverage options and additional coverage for those homeowners who are looking for extra protection.

6.      AIG Hawaii

AIG Hawaii is considered to be the premier homeowner insurance provider with a number of coverage options for homeowners. With AIG Hawaii, you get industry-leading coverage options, cash settlement claims, and complementary hurricane or wildfire service. AIG enjoys an A rating from AM Best and a 2 of 5 rating by JD Power, which goes to show the level of quality that AIG Hawaii offers for homeowners.

7.      State Farm Home Insurance Hawaii

It is easy to see why State Farm comes highly rated for homeowners insurance in Hawaii. Currently, State Farm writes over 33% of all total premiums in Hawaii. State Farm enjoys an A++ AM Best rating and 3 out of 5 JD Power rating. Customers also get to enjoy some great discounts and additional savings options for bundled policies. The standard homeowners policies provided by State Farm are cheap, which is what makes them the preferred choice for homeowners in the state of Hawaii.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Are homeowners insured for lava in Hawaii?

While there is no such thing as lava insurance or volcano insurance in Hawaii, they are included in your existing homeowner’s insurance policy. Many homeowners do not include lava coverage in their existing insurance policy because it can result in having to pay higher insurance premiums, which can go up to $3,000 annually.

Is it illegal to not have home insurance in Hawaii?

The short answer is no. While it is not illegal to not have homeowners insurance in Hawaii, it is considered a violation of agreement if you have a mortgage that does not carry home insurance. That said, there is no official state law which makes it illegal to not have homeowner’s insurance in Hawaii.

Is hurricane insurance required in Hawaii?

In Hawaii, the hurricane season lasts from June to November. Because of the high risk of damage to one’s property, hurricane insurance is provided as supplemental insurance coverage to home insurance. Hurricane insurance covers all wind-related damage that is caused by hurricanes. Also, banks in Hawaii require hurricane insurance as part of their mortgage approval.