Best homeowners insurance in Hawaii of 2021
In Hawaii, the homeownership rate is just over 58%, which is much lower than the U.S. national average rate of about 64%. The average cost of home insurance in Hawaii is $396 for $250k of dwelling coverage. Part of this is due to Hawaii’s high cost of living. The median property value in the state was $631,700 in 2018, compared to the U.S. average, which was just $229,700 the same year.
Hawaii is one of the most beautiful states, with warm sandy beaches, clear blue waters and lush mountain ranges. But because it is an island, many homes in Hawaii are at risk of flood, storm and even earthquake damage. Having the right home insurance policies can protect your home and your belongings from certain events.
Best home insurance companies in Hawaii
To simplify your insurance shopping experience, we put together a list of the best home insurance companies in Hawaii. These providers were rated highly in the 2020 J.D. Power U.S. Home Insurance Study. We also looked at the providers’ ratings for overall satisfaction, policy offerings, price, customer service and claims handling. The top home insurance providers are listed in the chart below with accompanying average annual premiums and J.D. Power Scores:
|Home Insurance Company||Average Annual Premium for $250K Liability||J.D. Power Score|
|Ocean Harbor Group||$570||N/A|
State Farm has an above-average J.D. Power Score in customer satisfaction. The company provides the standard homeowners insurance coverage options, including protection for keepsakes, hobby equipment and home and garden products.
Ocean Harbor Group
Ocean Harbor Group is not ranked by J.D. Power, but has various policies that protect home and condo owners and renters depending on their needs. Each policy has additional add ons such as debris removal, ID recovery, loss assessment and others depending on the policy. For Hawaii homeowners looking to save, Ocean Harbor Group offers multiple discounts such as for having a hurricane protective system or new home.
Allstate also has an above-average J.D. Power score, but it is known for its online and mobile tools, as well as its affordable policies. Allstate offers several ways for Hawaii homeowners to save on their premiums with discounts for switching to its insurance policy, signing a policy seven days before your old one expires and enabling automatic payments.
Average cost of homeowners insurance in Hawaii
In the Aloha State, homeowners pay an average of $396 per year for a $250k dwelling, which is significantly less than the U.S. national average of $1,477 per year. The state’s decreased likelihood of experiencing a tornado compared to some coastal states may account for its lower average. However, some Hawaiians will pay more or less for their home insurance based on a number of factors. For instance, your age, credit score and marital status all contribute to your rate.
Because Hawaii is an island, it does not have any bordering states. California and Alaska are the closest, but they are each still more than 2,500 miles away. The average cost of home insurance in Hawaii is about $700 less expensive than in California and Alaska, which have premiums of $1,101 and $1,059 per year, respectively.
Home insurance considerations in Hawaii
Although tornados in Hawaii are not as common, there are other natural disasters that the state experiences from time to time. Homeowners should consider these factors and plan ahead to ensure their belongings are protected in the event of a wildfire or earthquake.
Hawaii common causes of loss
The most common causes of home insurance claims in Hawaii are floods, earthquakes, wildfires and hurricanes. In October 2006, two earthquakes—a 6.7 and 6.0 magnitude—struck Hawaii’s Big Island just a few minutes apart. The earthquake damaged 1,173 homes and left 29 homes unlivable. Every year, the Hawaiian islands experience wildfires in the dry season, especially around heavily forested areas. Because of that, having adequate insurance coverage for your home is important.
- Structural damage: This coverage offers protection for any structural damage which can affect the roof, walls, and foundation of your home. Structural damages may be a common loss, especially from earthquakes and wildfires.
- Furniture and belongings damage: The interior of your home can be damaged in the event of a wildfire. In 2019, a large brush fire in Maui burned an estimated 10,000 acres and displaced 600 people.
- Flood damage: Flooding can be common in Hawaii, especially from hurricanes and heavy rain. Flooding can result in damaging the exterior of your home and leaving cracks in the walls.
Home insurance coverages in Hawaii
All home insurance policies include hazard insurance, which are standard coverages that protect your home from damage caused by wind, fire, explosions, theft, falling objects and more. The exact coverage types can vary from company to company, so you should speak with your provider to verify its named perils. However, there are certain risks that homeowners in Hawaii face that require extra coverage. For example, flooding and earthquakes can happen on any island in Hawaii.
To protect your home and your belongings, it is a good idea to purchase separate flood insurance and earthquake insurance. Some recommended additional coverages for Hawaii homeowners are:
- Flood insurance: With Hawaii being an island, it is more susceptible to storm surges and flooding. Flood insurance can be purchased to cover resulting damage from cases of rising water, which are otherwise uncovered in standard insurance policies. As of 2019, there was about $643 million worth of flood insurance policies active in Hawaii.
- Earthquake insurance: Because Hawaii is home to several active volcanoes, earthquakes are not uncommon. Earthquake insurance protects your home following damage from earthquakes or volcanic activity.
- Landscaping: Many Hawaii homeowners decide to invest time into their yards and gardens. To offer additional protection for these parts of your home, you may want to consider purchasing increased landscaping or garden coverage from your insurance provider.
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 provider has its strengths and weaknesses, so it is up to you to find a company that meets your specific needs.
How do I get homeowners insurance in Hawaii?
To get homeowner insurance in Hawaii, start by finding a few providers in your area and reach out for a quote. You will be asked to submit some information about yourself and your home. If you are buying home insurance for the first time, we recommend working with an agent to make sure you are getting enough coverage for your home and belongings. Once you choose your coverages and apply discounts, you sign the policy and start your coverage.
How much does homeowners insurance in Hawaii cost?
On average, homeowners insurance in Hawaii costs $396 per year for a $250k dwelling, but every homeowner pays a slightly different rate. To help determine how much insurance from your home will cost, consider factors such as the size of your home, location and the value of your belongings.
What types of home insurance do I need in Hawaii?
If you live in Hawaii, you will need basic insurance (dwelling, personal property, liability, medical payments and loss of use coverage). However, you will also benefit from having additional coverages such as flood and earthquake insurance policies.
Bankrate utilizes Quadrant Information Services to analyze 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 may be different.
Rates are determined based on 2020 Quadrant Information Services data.