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.

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.

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.

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.

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Best homeowners insurance in Hawaii for 2023

Written by

Carol Pope

Edited by

Maggie Kempken

Reviewed by

Mark Friedlander

Updated Jan 03, 2023

The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .

The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our

What To Know First

Hawaii is one of the most beautiful places to own a home, and one of the cheapest states for homeowners insurance, on average. 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.

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Quick Facts

$382/year

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1 out of every 20

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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.

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.
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

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 ratings in the J.D. Power 2022 U.S. Home Insurance Study.

Insurance company	Average annual premium	J.D. Power	AM Best
State Farm Rating: 3.2 stars out of 5 3.2 Bankrate Score	Average annual premium $434	J.D. Power 835 /1,000	AM Best A++ (Superior)	Read review
Allstate Rating: 3.5 stars out of 5 3.5 Bankrate Score	Average annual premium $358	J.D. Power 829 /1,000	AM Best A+ (Superior)	Get a quote
Ocean Harbor	Average annual premium $514	J.D. Power Not rated	AM Best Not rated	Get a quote

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

Best home insurance company for digital tools

State Farm

3.2 Bankrate Score

State Farm Insurance review

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J.D. Power:: 835 /1,000
AM Best:: A ⁺⁺
Avg. annual premium for 250k dwelling: ^$ 434

In addition to standard home protection, State Farm offers a fire safety program through a partnership with Ting that you won’t find with other companies. For eligible policyholders, State Farm will send you a free device that monitors your home’s electrical system and alerts you of any issues via a mobile app. For those who prefer to do business in person, State Farm has many local offices across Hawaii. For tech-savvy homeowners, State Farm took the second spot in the J.D. Power 2022 U.S. Insurance Digital Experience Study for overall customer satisfaction. It is important to note that while it scored above average in the J.D. Power 2022 U.S. Home Insurance Study, State Farm received a higher-than-baseline number of complaints per the NAIC. Homeowners with customer service at top-of-mind may want to read policyholder reviews.
Pros
Mobile app allows for easy policy management

Plenty of local agencies in Hawaii for those who prefer to do business in an office
Cons
More than the average amount of customer complaints, according to the NAIC

May not be the cheapest option for Hawaii homeowners

State Farm Insurance review

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Best home insurance company for discounts

Allstate

3.5 Bankrate Score

Allstate Insurance review

Explore Bankrate's review

J.D. Power:: 829 /1,000
AM Best:: A ⁺
Avg. annual premium for 250k dwelling: ^$ 358

On average, Allstate has some of the cheapest homeowners insurance rates in Hawaii, based on the carriers on our list. In addition, the company has 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. Additionally, it scored just under the segment average for overall customer satisfaction per J.D. Power.
Pros
Many discount opportunities for Hawaii homeowners may help you save on your premium

Strong digital presence plus numerous physical office locations in Hawaii gives customers a choice when doing business with the company
Cons
More complaints than average per the NAIC

Scored just under segment average in the J.D. Power 2022 Home Insurance Study

Allstate Insurance review

Explore Bankrate's review

Best home insurance company for add-on coverage options

Ocean Harbor

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J.D. Power:: Not rated
AM Best:: N/A
Avg. annual premium for 250k dwelling: ^$ 514

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 potential 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 AM Best financial strength rating than other companies we studied in the state. Based on average rate data, it also tends to be more expensive than other companies.
Pros
Robust endorsement options

As a regional carrier, it may be more in tune with the local market
Cons
Tends to be more expensive than competitors

Lower AM Best financial strength rating than other companies we studied

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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:

Hawaii city Average annual premium for $250k dwelling coverage

Hilo $382

Honolulu $376

Kailua $376

Pearl City $376

Waipahu $376

Hawaii city	Average annual premium for $250k dwelling coverage
Hilo	$382
Honolulu	$376
Kailua	$376
Pearl City	$376
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

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.
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.
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.
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.

Written by

Carol Pope

Insurance Writer

Best homeowners insurance in Hawaii for 2023

The Bankrate promise

What To Know First

On This Page

Compare home insurance rates

Leaving so soon? Your custom quotes are just minutes away.

How Bankrate chose the best home insurance companies in Hawaii

Methodology

Bankrate Score

Best home insurance companies in Hawaii

State Farm

Allstate

Ocean Harbor

How much is homeowners insurance in Hawaii?

Hawaii homeowners insurance rates by city

Home insurance in Hawaii

Common causes of loss in Hawaii

Home insurance coverage options in Hawaii

Frequently asked questions

What is the best homeowners insurance in Hawaii?

How do I get homeowners insurance in Hawaii?

What types of home insurance do I need in Hawaii?

Does homeowners insurance cover flooded basements?