Best homeowners insurance in Hawaii of 2021

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In Hawaii, the homeownership rate is just over 58%, which is much lower than the U.S. national average rate of approximately 65%. However, Hawaii homeowners have a major advantage over homeowners across the rest of the country: the average cost of home insurance in Hawaii is $376 for $250,000 of dwelling coverage, according to Bankrate’s 2021 study of average quoted premiums. In fact, Hawaii is home to the cheapest property insurance rates in the nation.

Although the state’s average premium is the lowest in the U.S., Hawaii homeowners have unique considerations when it comes to buying property insurance. If you are searching for the best homeowners insurance in Hawaii, you may want to review more factors than just price. Bankrate’s insurance editorial team conducted research on the largest Hawaii homeowners insurance companies by market share to help you find an option that is right for you.

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 Hawaii homeowners insurance. We also analyzed each company’s coverages, discounts and customer satisfaction scores.

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 $437 829 / 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 optional coverages that could help round out your policy, including yard and garden coverage, electronic data recovery coverage and business property coverage.

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 National Association of Insurance Commissioners (NAIC). A 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 coverages, including debris removal, water and sewer backup and ID recovery. Discounts include insuring a new home and having a security system.

State Farm

State Farm tied with Allstate in the 2020 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.

Learn more: State Farm Insurance review

How much is homeowners insurance in Hawaii?

In the Aloha State, homeowners pay an average of $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. 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, coverages 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 rates 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 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 coverages 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: 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 landfalls in its history: Hurricane Iniki in 1992 and Hurricane Dot in 1959.

Understanding these common causes of damage can help you know what kind of insurance protections to purchase.

Home insurance coverage options in Hawaii

In addition to standard home insurance coverages like dwelling coverage, personal property coverage and liability coverage, you may want to consider tailoring your policy to Hawaii’s unique risks. Here are some additional coverages 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. Flood insurance can be purchased through 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 coverages 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. This is  the Triple-I recommends getting quotes from a minimum of three companies so you can compare coverages and costs.

How do I get homeowners insurance in Hawaii?

To purchase homeowners insurance in Hawaii, you could start by identifying a few carriers who write property insurance in your area and reaching out for a quote. Many companies offer quotes online, but you can also call companies or visit local insurance agencies. You will be asked to submit some information about yourself and your home, like your address and date of birth, your home’s building year and what kind of coverages you are interested in.

The agent you are working with should be able to help you choose coverages. Once you select a quote to proceed with, a company representative or your agent will usually walk you through the purchase process, which could involve signing an application and possibly making a payment.

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. 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 coverages you choose will depend on your unique situation. Working with a licensed insurance agent may help you decide which coverages and levels are most appropriate for you.

Does homeowners insurance cover flooded basements?

Coverage depends on why your basement flooded. If the water is the result of a flood, your homeowners insurance will not cover it; you will need flood insurance for that coverage. If your basement flooded due to a sewer or drain backup, you may have coverage depending on how your policy is written. However, that coverage is not automatic. Most homeowners insurance companies require you to have a sewer backup endorsement to have coverage.


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, good credit 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.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with nearly a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor
Reviewed by
Mark Friedlander
Director of corporate communications, Insurance Information Institute