Best homeowners insurance in Hawaii for 2022

How Bankrate chose the best home insurance companies in Hawaii

To find the best Hawaii homeowners insurance, we reviewed some top Hawaii home insurance companies using our unique methodology. Based on the findings, we assigned each company a Bankrate Score out of five points. Bankrate Scores are calculated using factors like affordability, coverage options, customer service, financial strength and online and mobile tools.

When comparing home insurance companies in Hawaii, using Bankrate Scores to guide your search can be helpful. Companies that receive a high score are generally well-rounded, with good offerings across the board. On the other hand, low Bankrate Scores may indicate shortcomings in multiple areas, such as price or customer satisfaction.

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    Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

    • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
    • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
    • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
    • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
    • Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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    Bankrate Score

    Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

    To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.

    While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Best home insurance companies in Hawaii

The average cost of homeowners insurance in Hawaii is $378 per year for $250,000 in dwelling coverage, based on our analysis. However, it’s possible to find an even lower rate. Based on our review of the top Hawaii home insurance providers, Allstate, Ocean Harbor Insurance Group and State Farm stand out as some of the best carriers. These home insurance companies offer affordable rates, multiple coverage options, generous discounts and good third-party ratings.

*Average rates are for annual policies with $250,000 in dwelling coverage

Allstate

Best for: Discounts

Allstate has the cheapest homeowners insurance rates in Hawaii, based on the carriers on our list. In addition, the company has an above-average J.D. Power score for overall customer satisfaction and excellent financial strength. Allstate stands out for its savings opportunities for Hawaii homeowners, with discounts for new customers, automatic payments, new homebuyers and having an active home security system. The company also has some endorsements that may help round out your policy, including yard and garden coverage, electronic data recovery coverage and business property coverage. However, Allstate does have a higher-than-average complaint index score from the National Association of Insurance Commissioners (NAIC), indicating that more policyholders complain about Allstate than average.

Learn more: Allstate Insurance review

Ocean Harbor Insurance Group

Best for: Add-on coverages

Ocean Harbor Insurance Group is a regional home insurance carrier. The company offers a wide variety of add-on coverage choices for Hawaii homeowners, including debris removal, water and sewer backup and ID recovery. There are also home insurance discounts for insuring a new home, having an active security system and using hurricane-proof building materials. However, Ocean Harbor has some downsides, like a lower financial strength rating. Based on average rate data, it also has the most expensive premiums out of the providers we reviewed.

State Farm

Best for: Customer satisfaction

State Farm ranks fourth in the 2021 J.D. Power U.S. Home Insurance study for customer satisfaction. It also has a high financial strength rating. State Farm provides standard homeowners insurance coverage options, including protection for keepsakes, hobby equipment and home and garden products. However, State Farm’s premium is above average, but it may be lowered by taking advantage of the company’s multi-policy discount, roofing discount or home security system discount.

Learn more: State Farm Insurance review

How much is homeowners insurance in Hawaii?

The average cost of homeowners insurance in the Aloha State is $378 per year for $250,000 in dwelling coverage, which is significantly less than the U.S. national average of $1,383 per year. It’s also much cheaper than nearby states along the Pacific Ocean, like California ($1,084 per year) and Oregon ($704 per year).

Hawaii’s low home insurance rates could be due to the state’s relatively low risk of incurring property losses from natural disasters. Additionally, because Hawaii homeowners with a mortgage are required to carry a separate hurricane insurance policy, the required expense may play a part in the low-cost standard home insurance policy.

However, your home insurance premium will vary based on more than a dozen rating factors, according to the Insurance Information Institute (Triple-I). For instance, the age and construction of your home, replacement cost, property claims history, coverage and deductibles chosen, proximity to a fire station and even your marital status all contribute to your rate.

The cost of your home insurance will also depend on where you live. In the table below, you can see the average cost of home insurance in various cities around Hawaii:

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  Hawaii homeowners insurance rates by city

  Hawaii city	Average annual premium for $250K dwelling coverage
  Aiea	$376
  Hilo	$382
  Honolulu	$376
  Kahului	$382
  Kailua-Kona	$382
  Kaneohe	$376
  Mililani	$376
  Pearl City	$376
  Wailuku	$382
  Waipahu	$376

Home insurance in Hawaii

Although Hawaii is relatively safe from the impacts of many natural disasters, such as tornadoes, hailstorms and blizzards, there are still state-specific causes of loss and insurance considerations to make when buying property insurance. These factors could help you determine what coverage types are right for you.

Common causes of loss in Hawaii

The most common causes of property losses in Hawaii are floods, earthquakes, wildfires and hurricanes.

• Earthquake damage: In October 2006, two earthquakes — a 6.7 and 6.0 magnitude — struck Hawaii’s Big Island just a few minutes apart. The earthquakes damaged 1,173 homes and left 29 homes unlivable.
• Wildfire damage: Hawaii might not be the first state you think of when you think of wildfires, but they are a significant issue. Fifty-eight wildfires burned in Hawaii in 2020, damaging 472 acres of land.
• Flood damage: The entire state of Hawaii is at an increased risk of flooding, with an average National Flood Insurance Program (NFIP) claim payment of $36,100.
• Windstorm damage: While Hawaii can incur wind and water impacts from Pacific basin hurricanes, as it did with Hurricane Douglas in 2020, the state has only experienced two other landfalls in its history — Iniki in 1992 and Dot in 1959.

Understanding these common causes of damage can help you know what kind of insurance protections to purchase. Perils such as earthquakes, floods, and hurricanes are typically excluded from a standard homeowners policy and require an additional policy to have coverage.

Home insurance coverage options in Hawaii

In addition to standard home insurance coverage types like dwelling coverage, personal property coverage and liability coverage, you may want to consider tailoring your policy to Hawaii’s unique risks. For example, though uncommon, hurricane damage is not included in standard Hawaii home coverage and requires a separate policy. Here are some additional coverage options you might want to consider:

• Flood insurance: Damage caused by flooding is not covered under a standard home insurance policy. This is typically a separate policy, but some home insurers offer it as an endorsement. The policy may even be required if you have a mortgage or live in a high-risk flood zone. Flood insurance can be purchased through the NFIP or private insurers.
• Earthquake insurance: Just like flood damage, earthquake damage is not usually covered by a standard home insurance policy. You can often purchase earthquake insurance as an endorsement, but if you are in a particularly high-risk area, you may need a separate policy.
• Landscaping: Many Hawaii homeowners invest time into their yards and gardens. To offer additional protection for these external areas of your property, you may want to consider purchasing increased landscaping or garden coverage from your home insurer.

Working with a local insurance agent may be helpful when determining what coverage to purchase.

Frequently asked questions

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    What is the best homeowners insurance in Hawaii?

    There is no single homeowners insurance company in Hawaii that is the best homeowners insurance company for everyone. Each carrier has its strengths and weaknesses, and every homeowner has different needs and wants. The Triple-I recommends getting quotes from a minimum of three companies so you can compare coverage and costs.

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    How do I get homeowners insurance in Hawaii?

    To get a home insurance policy, you’ll need to start by gathering quotes. Many providers offer quotes online, but you can also call most companies and may be able to visit local agencies for some providers. You’ll need your name, address and some information about your house, like the year it was built, how old the roof is and the square footage. You may also be asked for your Social Security number. Once you have chosen a quote that you’d like to purchase, you may need to sign an application. If your home insurance is paid from your mortgage escrow account, you probably won’t need to make a payment, but if you pay your insurance directly, you might need to pay at least a month’s worth of premium to start the policy.

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    What types of home insurance do I need in Hawaii?

    Homeowners insurance is not legally required in Hawaii, but if you have a mortgage or any other home loan, you may be required to carry a policy. Hawaii residents are also required to carry a separate hurricane policy to account for the extent of potential damage. You will likely want to have enough coverage to cover the rebuilding cost of your home, according to the Triple-I. It also helps to consider your liability exposure. The optional coverage types you choose will depend on your unique situation. Working with a licensed insurance agent may help you decide which coverage and levels are most appropriate for you.

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    Does homeowners insurance cover flooded basements?

    It might, but it depends on why the basement flooded. Home insurance generally covers water damage from broken pipes (although not the cost to repair the pipe itself), and you might be able to add a sewer backup endorsement to cover sump pump backup. True flood damage, though, which is usually defined as an overflow of a body of water or the accumulation of surface water, is typically not covered by standard home insurance policies. For flood coverage, you’ll need a flood insurance policy.