Best cheap homeowners insurance in Honolulu

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Despite a high cost of living, Honolulu is a great place to live for the tropical climate, wonderful beaches, and lively nightlife. If you are one of the majority of people who own homes in the Hawaiian city, you know how vital it is to have good home insurance in Honolulu to protect you in the case of a fire, hurricane or other disaster. The average homeowners insurance in Honolulu is $372 per year for $250,000 of dwelling coverage according to Bankrate’s study of quoted annual premiums, which is in keeping with Hawaii’s annual home insurance average of $376. This is the lowest insurance rate of any state in the U.S. — the national average is $1,312.

Although some national insurers do not write policies in Hawaii, we looked at those local to the area and found a couple that offer great rates, excellent service and more for Honolulu homeowners.

Best cheap home insurance companies Honolulu

To find the best cheap home insurance in Honolulu, we first analyzed 2021 quoted premiums gathered from Quadrant Information Services and determined the lowest coat. We gave special attention to insurers who offer a generous number of discounts, which could bring your rate down even more. We also checked with consumer watchdog organizations like J.D. Power, who rate customer service. Lastly, we looked for companies that offer multiple ways to personalize your policy with additional add-ons, also called endorsements.

For those seeking cheap home insurance, Honolulu homeowners may consider getting quotes from the following companies:

Home Insurance Company Average Annual Premium for $250K Liability J.D. Power Score
Allstate $358 829/1,000
State Farm $412 829/1,000

Allstate

One of the largest insurers in the U.S., Allstate’s website makes it easy to pay your bill, file a claim or learn more about insurance. Standard homeowners insurance policies include coverage for your dwelling and personal property as well as liability protection and guest medical protection.

Optional coverages include identity theft restoration, water and sump pump backup and a green improvement reimbursement that pays for you to repair your home with energy-efficient materials and practices. Allstate has numerous discounts that can reduce its already-low premium costs, including up to 10% off just for switching to Allstate, up to 5% savings if you set up automatic payments and an early signing discount of up to 10% if you purchase your new policy at least seven days before your current one expires.

Learn more: Allstate Insurance review

State Farm

Like Allstate, State Farm is one of the largest and most comprehensive insurers in the U.S., with nearly 18% of the market. Its average premium rate for Honolulu homeowners is a little above the city average, but not by much. It writes robust policies and has a higher-than-average rating from J.D. Power, so you know the company places a high value on customer service.

State Farm offers three relatively easy-to-earn discounts: one for bundling with other policies, one for home alert protection systems — such as smoke detectors — and a discount for using impact-resistant roofing products. There are also a range of endorsements and optional coverages, such as flood insurance. Your agent can help you determine which coverages are right for you.

Learn more: State Farm Insurance review

Home insurance coverage options in Honolulu

Home insurance in Honolulu is not required by law, although your mortgage lender may require you to carry a policy. Moreover, it is rarely a bad idea to have home insurance as it can save you thousands of dollars in the event of a severe weather situation or other covered disasters. Most insurers allow you to personalize your policy. Here are some of the most common endorsements for Honolulu homeowners:

  • Flood insurance: With a close proximity to the ocean, some Honolulu homes may be prone to flooding. Flooding is not covered by standard HO-3 policies, however, and you will need an additional policy if you are in a flood zone.
  • Water backup and sump pump discharge: This coverage can usually be added to your policy at a reasonable cost and offers financial protection in the event of an overflow from your sump pump.
  • Valuable items coverage: While personal property is covered in standard HO-3 policies, there are limits to that coverage. If you own valuable items such as fine art, jewelry or extensive electronics, this endorsement could give you additional protection for them.

Home insurance discounts in Honolulu

Although Honolulu has low average rates for homeowners insurance, options to bring them down even more may still help. Discounts come in handy for lowering premiums. Just about every insurer offers them and some discounts may be fairly easy to earn. Here are some common ones for Honolulu homeowners to consider:

  • Security devices: Having a smoke detector, sprinkler system, fire extinguishers or burglar alarms may earn you a discount on your premium. Deadbolt locks and gas/water leak detectors are also applicable for some insurers.
  • Seniors: A few insurers offer discounts for those who are 55 and older. If you fit in this category, consider asking your agent for a discount.
  • Newer homes: New homes tend to generate fewer claims, so insurers may reward you for having a new home with a small discount.
  • Automatic payment: By setting up your account so that your monthly payment automatically withdraws from your account, you may earn some savings.

A single discount may lead to 5-10% off your premium. If you qualify for more than one, the savings start to add up. Consider reviewing your insurance once a year to see if new discounts are available, such as a loyalty discount after three to five years.

Frequently asked questions

What is the best home insurance company?

To find the best homeowners insurance in Honolulu, gather quotes from several insurers and take note of who gives you the best rates. If you call an agent for your quote, pay attention to how informative and professional they are. The best company for you combines low prices, good service and a broad range of coverage options to suit your needs.

How much does home insurance in Honolulu cost?

The average cost of home insurance in Honolulu is $372 for $250K of dwelling coverage per year. Your premium cost will vary, depending on multiple factors. Insurers will take into consideration your home’s age, condition and location in determining your premium.

How much home insurance do I need in Honolulu?

You should aim to have enough homeowners insurance in Honolulu so that if a hurricane or other covered event destroys your house, you have enough coverage to rebuild it to the same standards. This amount is not directly related to your home’s market value, but instead is determined by construction costs in your area. It may help to speak with your insurance agent to determine how much coverage you should purchase.

Methodology

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
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has written for insurance domains such as Bankrate.com, Coverage.com and Thesimpledollar.com for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including reviews.com and myslumberyard.com. Prior to that, she worked as a writer in academia for several decades.
Edited by
Insurance Editor