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Best homeowners insurance in Hawaii for 2022
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Hawaii is one of the most beautiful places to own a home, and one of the cheapest states for homeowners insurance. On average, Hawaii homeowners insurance costs $378 per year for a policy with $250,000 in dwelling coverage. But if you are searching for the best homeowners insurance in Hawaii, it’s important to consider factors besides price. Bankrate used a unique review methodology, including reviewing premium data from Quadrant Information Services, to identify some of the best Hawaii homeowners insurance companies to help you find a provider that meets your coverage needs.
- The average cost of home insurance in Hawaii is $378 per year for $250,000 in dwelling coverage.
- According to average premium data, Allstate offers cheap insurance premiums for Hawaii homeowners at $358 per year.
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.
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.
|Home insurance company||Bankrate score||Average annual premium for $250K in dwelling coverage||J.D. Power score||AM Best rating|
|Ocean Harbor Insurance Group||Not rated||$514||Not rated||B+|
*Average rates are for annual policies with $250,000 in dwelling coverage
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.
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:
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.