Just over 60% of Hawaii residents own homes, which means there’s a need for quality home insurance in the island state. Luckily, Hawaii is the cheapest state for home insurance by far, with an average cost of just $376 per year for $250,000 in dwelling coverage. But price isn’t the only consideration when buying a homeowners policy. You may also want to consider customer service scores, financial strength, available coverage types, discounts and policy features. How do you know if you are getting the best Hawaii homeowners insurance for your needs?
Bankrate analyzed Hawaii homeowners insurance companies to help you find an option that is right for you. Having a policy that provides appropriate coverage from a company with excellent customer service and the financial strength to pay claims might help you achieve peace of mind in your policy.

Best home insurance companies in Hawaii

To decide which companies to feature, we first analyzed average premiums obtained from Quadrant Information Services. And while price is important, there are other factors to consider when looking for the best homeowners insurance in Hawaii. We also analyzed each company’s coverage types, discounts and customer satisfaction scores. The companies below offer solid coverage choices to personalize your insurance to your needs as well as highly-rated customer service.

If you are in the market for Hawaii home insurance, the following companies might be a good place to start:

Home insurance company Average annual premium for $250k dwelling J.D. Power score
Allstate $358 829/1,000
Ocean Harbor Insurance Group $507 Not rated
State Farm $437 835/1,000


Allstate has an above-average J.D. Power score and is well-known for its online and mobile tools as well as its affordable policies. Allstate offers several discounts, including savings for new customers, automatic payments, new homebuyers and having a home security system. The company also has some endorsements that could 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

Ocean Harbor Insurance Group is a regional carrier that is not ranked by J.D. Power. However, the company’s home insurance product received a lower-than-average complaint index score from the NAIC. An NAIC score of 1.00 represents a baseline number of complaints, and Ocean Harbor’s home insurance received a score of 0.45, indicating fewer-than-average complaints. The company offers several optional coverage choices, including debris removal, water and sewer backup and ID recovery. Discounts include insuring a new home and having a security system. It’s worth noting that Ocean Harbor doesn’t have a mobile app or online customer portal, so you won’t have the option to handle your policy digitally.

State Farm

State Farm ranks above Allstate in the 2021 J.D. Power U.S. Home Insurance study for customer satisfaction. The company provides standard homeowners insurance coverage options, including protection for keepsakes, hobby equipment and home and garden products. You might be able to lower State Farm’s above-average premium by taking advantage of the company’s multi-policy discount, roofing discount or home security system discount. However, State Farm’s J.D. Power claims satisfaction score is lower than the industry average, indicating that its customers might not be pleased with its claims service.

Learn more: State Farm Insurance review

How much is homeowners insurance in Hawaii?

The average cost of homeowners insurance in the Aloha State is $376 per year for $250,000 in dwelling coverage, which is significantly less than the U.S. national average of $1,312 per year. This could be due to the state’s relatively low risk for 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.

Because Hawaii is a chain of islands, it does not have any bordering states. But compared to other states along the Pacific Ocean, Hawaii’s homeowners insurance policies are incredibly cheap. California homeowners pay an average of $1,014 per year and Alaska’s average annual premium is $1,040.

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. 58 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 earthquake, flood, 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 do 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

What is the best homeowners insurance in Hawaii?

There is no single homeowners insurance company in Hawaii that is the best 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 type of 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.


Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • 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.