Hawaii Homeowners Insurance

 
Hawaii Homeowners Insurance

Residents in Hawaii pay an average of $85.50 per month or $1,026 per year in home insurance premiums. 


There are more than half a million homes in the Aloha State, fifty-eight percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in Paradise is $2,303.

Residents in Hawaii pay an average of $84 per month or $1,014 per year in home insurance premiums. 


There are more than half a million homes in The Aloha State, fifty-eight percent of which are owner-occupied.


The average monthly cost for a homeowner with a mortgage in Paradise is $2,303.

Shop around and save.

Compare insurers to find the cheapest rates around.

 

Hawaii Statistics*

1,420,491

Population

$563,900

Average value of owner-occupied housing units

455,502

Households

$74,923

Average household income

92%

High school grad or higher, percent of people age 25 years +

27 min

Average travel time to work

*Data from the U.S. Census Bureau


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Hawaii is a beautiful place to live with islands to discover and explore. Sunshine all year round make it an ideal place to be and locals enjoy pristine beaches any time of the year. Although in 1992, Hawaii, in particular the island of Kauai, was hit with the costliest hurricane on record in the East and Central Pacific regions. According to Wikipedia, Hawaii caused a little over $3 billion in damages, mainly in Kauai.There are also the various volcanic eruptions that occurred in the recent decades.


With a variety of natural disasters hitting the state and a growing concern for environmental problems which are causing these natural disasters, getting homeowners insurance is essential to protect homes and pockets of residents of Hawaii. Since the real estate market of Hawaii is very expensive, the houses are even more valuable. Therefore, if you have property in Hawaii, it’s vital to do research and check out different home insurance companies to find the best deal that suit your needs. Our free comparison tool aims to aid you with this process by providing you with a list of insurers in your area so be sure to test it out to help your search.

Home insurance rates: State vs Nationwide


Being a popular tourism and luxury center, Hawaii has quite a few companies such as State Farm, Allstate, Heritage and First Insurance Company of Hawaii (FICOH), which fill in as the major insurance providers with more than 60% of insurance coverage in the state.


Being an island and prone to hurricanes and other natural disasters, the average premium rates in Hawaii for home insurance are below the nation's average and relatively affordable at $1,026 annually ($85.5/month) in 2016 (latest available data) according to Information Insurance Institute (III). Despite the high risk of natural disasters in the state, insurance premiums have been kept at bay as when compared to the US average of $1,192 in 2016, Hawaiians still paid $166 less than the average US homeowner.


This means the average homeowner premium rate in Hawaii is lower than the average premium rate in the country. These rates may slightly vary, depending on the area you are residing in. 


Average premium rates vary widely across the states. These rates depend on the coverage policies and on susceptibility to natural disasters. Homeowners insurance rates have been increasing steadily over the years. In fact, they have increased by up to 50% over the past ten years in the US.

Average Hawaii home insurance premiums

 201620152014
Monthly average$85.50$84.5$84.8
Annual average$1,026$1,014$1,018
National annual average$1,192$1,173$1,132
Rank292926
Source: The annual average premiums came from the Insurance Information Institute's latest recorded data. We calculate the estimated monthly insurance costs based on the data provided.

Our best homeowners insurance companies in Hawaii


Our top companies in Hawaii are mainly based on III's table of home insurance providers with the most direct premiums written as per their market share percentages in 2017. III's list of home insurers with the most market share holdings in the state gives us an idea on who are the most popular insurers in Hawaii. Then, we'll look at how valuable their policies are, their customer support and their financial stability. The ratings by AM Best, JD Power and other rating agencies are also helpful indicators, although not all companies receive ratings by them.


Please note that it’s not possible for us to review all of the home insurers in Hawaii, therefore it may very well be that the best company for you may be one that we did not mention in our article. Our list is meant to give you an insight on already popular companies in Hawaii making them a safe choice in terms of reliability although shopping around and comparing quotes with as many providers in your area will ensure you’ve got the best deal around.


Choosing the right insurance policy for your house or property is such a hectic task, but it may save you extra cost in the long run when you have to pay from your pocket. If you are living in Hawaii, you should know that not all companies offer flood insurance in their basic packages. Since flood is a consistent threat in the state, you should ensure that your policy covers you for all your needs and potential disasters.


One thing to keep in mind is that the cost of insurance should not be the sole deciding factor when choosing a policy. You should consider a company’s services and support as well - how the company will handle a claim is one of the most important factors to consider. Following are our top insurance companies in Hawaii for homeowners:


Allstate 


Allstate in Hawaii gives an upfront discount for new constructions, which is why it lands in our list. It offers reliable customer support, which received a 3 (About average) out of 5 Power Circles Rating from JD Power's 2018 U.S. Home Insurance Study. 


We’ve found that popular companies like Allstate does not always offer the cheapest rates, but Allstate does provides numerous add-ons. Some of these add-ons are water backup coverage (which pays you in the event of water damage), identity theft restoration (which helps you replace documents and covers legal fees for identity theft cases) and green improvement (which helps cover the costs of becoming an energy-efficient home).


Allstate has an excellent resource system for customers. It provides a tool called Common and Costly Claims, which lets you know the common causes of claims in your nearby areas. For example, the most common insurance claim is wind damage to the roof in Oahu County. This can help you choose the best coverage options for you.


There is also a Home Inventory Tool that lets you track which belongings in your home are covered by your policy so that when you face a loss, you can immediately file a claim.


The website has done well in guiding visitors on how to get quotes using the online quote tool. It can also tell you about any past claims on your property. The most information, however, is provided by Allstate representatives available on live chat.


Heritage 


Heritage was founded in 2012 and is a property and casualty insurance company. In 2015, this company acquired Zephyr Insurance and according to the III, this company is the second most popular homeowner insurance company in Hawaii with a market share of almost 15 percent.


Hurricane insurance is one of its popular products but is not included with the standard home insurance policy. This policy is a bit expensive, but if you are living in areas with frequent hurricane threats, it will keep you covered in your time of need. The unique thing about Heritage is that it’s a specialty company and offers hurricane insurance.


This company provides coverage for unforeseen events such as lightning, fire, wind, and theft. Other than that, it also offers personal liability coverage, personal property and valuable coverage, and insurance for other structures such as a pool house or guest house.


First Insurance Company of Hawaii


The First Insurance Company of Hawaii (FICOH) is a member of the Tokio Marine Group, which is an international insurance conglomerate with top insurance holdings all over the world. Hence, this insurance company maintains a good financial footing, so you will not see a lot of reasonable claims going unprocessed.


According to AM Best, FICOH scores an A++ (Superior) for displaying solid financial strength, and its claims satisfaction rating is 97 percent. A FICOH homeowners insurance policy covers the damages caused by lightning, fire, and theft and provides an additional feature of personal liability coverage. Another plus for choosing FICOH is its Free Identity Management Service, which is included with every policy it offers.


Being a local Hawaiian insurance company, it has a better understanding of the difficulties that the residents of Hawaii face throughout the year. It knows the risk of floods and fire in the state and has the damages covered for you from local insurers. Furthermore, FICOH has been recognized as the most substantial property and casualty insurer with its headquarters in Hawaii. 


The most prominent thing about FICOH is its bundle discounts, which offer up to 40 percent off on bundling automobile insurance with home insurance. The home insurer offers an 11 percent discount for a renewal of a policy as a loyalty discount.


The overall coverage options are limited, however, and there is not much customizability. It also seems to prefer insuring homes with orthodox conditions and environments and will not find your home compatible if it does not meet their rather strict criteria.


The website is not very detailed and interactive. While there are FAQs and some information about agents, it does not cover everything a visitor might want to know. You will have to call customer support or contact an agent for detailed information and guidance because it does not offer live chat either. You also cannot get an online quote and can only get it through an agent. 


State Farm


State Farm has been working since 1922 to serve its customers and has been leading the market for years. In 2017, this company had 31.6 percent of the market share in Hawaii .Its policies are the most diverse among insurance companies with coverage options for many types of homes such as condos, mobile homes and apartments. Due to its reputation, it has been a popular choice among many states in the US.


Its homeowners insurance includes coverage for property to protect it from extreme weather conditions such as storms, lightning, fire, wind, and floods and other situations such as wreckage and theft. This policy is suitable for people living in single-family homes, condominiums, farms, and manufactured homes in Hawaii. 


It offers affordable, competitive pricing. For financial stability, it has received a rating of A++ (Superior) from AM Best, which is the highest possible rating. This means you can trust the company for approving filed claims. It is also known for covering houses that other insurers do not usually put their hands on.


State Farm has the Premier Service Program, which helps you keep in touch with a qualified contractor who can repair damaged floorings in case of floods or other natural disasters. It also offers Double Check Discount feature where the discount is automatically applied if you are eligible for one. This can save you up to 40% on your premiums and further reduce your insurance rate.


Its website is lacking in terms of structure and does not guide visitors very well. For instance, it has a HomeIndex tool through which you can look at all your coverage options included in your deal and in an emergency, you can quickly file a claim using the tool. It makes the claim filing process easier as compared to competitors that only offer claim hotlines. However, this tool is hard to find on the website, so many customers might not even know about it.


On the other hand, the live chat with an agent is helpful, and you can get all the policy information and recommendations from there. 

Hawaii home insurance companies: Market share and summary of ratings

RankInsurerMarket share %AM BestS&PJD Power
1State Farm31.6A++AA3
2Heritage14.4NRNRNR
3First of Hawaii Group9.6A++A+NR
4USAA7.6A++AA+5
5Allstate5.9A+AA3
NR: Not rated
Source: Insurance Information Institute, AM Best, S&P, JD Power

A summary


Hawaii is agreeably a state that has continued to raise its living standards thus raising the bar in business prospects and performance. Like several other states throughout the nation, Hawaii’s homeowners insurance elicits a lot of interest for industry players, homeowners and other stakeholders. The three companies we listed are our best in terms of affordability, discounts, financial stability and customer support. Most importantly, these companies have a successful record in insurance claim coverages.


Several factors, chief among them the weather, determine homeowners insurance premiums. For instance, although places are less prone to damages from weather whims, Hawaii, still gets several earthquakes the year round, some that leave behind great damage. It is also the driest state in the nation thus becoming prone to flash flooding since water moves faster across the soil.


Nonetheless, in regards to homeowners insurance premiums, Hawaii's annual premiums for homeowners are relatively lower in comparison to the general nationwide average. While Hawaii's average stands at $1,026 per year for an HO-3 policy the national average for the same is $1,192. It is important however to state that how the amount an individual pays may be determined by other factors such as your home's size, your assets, and even your address. Your own rate may fall below or above Hawaii’s recorded average so it’s good to know these numbers and question your conditions if you are getting an above average quote from multiple providers.


Being more prone to natural disasters, states like Hawaii have more active insurance companies which are competing for customer satisfaction. You can choose any company mentioned above to protect your assets from disasters according to your needs. Your decision should not depend on cost alone as prices may vary according to the damages covered, the age of your property and quick response to claims.

What's included in a basic home insurance policy?


Several providers are scattered across the state offering different rates and a wide range of products to choose from. Home insurers use standards to provide a basic home insurance policy. They will cover areas including:


The Dwelling or home structure: which is the physical building of your home or walls and the roof. Some Hawaiian homeowners insurance policies will cover other structures within your home.


Liability protection: There are several liabilities that may be covered including guest medical protection and even workers’ protection.


Personal property: Where personal property is covered, a person's belongings inside the home such as furniture, electronics, and others are covered. In some cases, where personal property gets damaged or stolen outside the home, the policy might stipulate that they are replaced.


Hawaiian homeowners can choose from a variety of providers such as State Farm, Heritage, Allstate, and USAA among others. USAA, though highly commendable for their customizable and affordable prices, only cater to military members and their families.


Hawaii takes pride in its rich gold deposits for its main economic activity besides tourism and previously silver mining. Home ownership programs also vary from city to city, towns and so on. It is nevertheless important to get comparisons between various providers before settling on the most convenient place for your needs. The cost of owning a home in Hawaii is also determined by several factors including location, though there are several homes for sale at any given time.

In conclusion


Hawaii is one of the most beautiful places on the planet and is known for its beautiful islands, but this natural beauty comes with severe natural disasters. In this beautiful place, your home faces continuous threat of severe damages during the storm season, which lasts from June to November every year.


However, hurricanes are not the only conditions from which Hawaiians need their homes protected. There is also a risk of volcanoes erupting on the island.


Due to all these weather conditions, the natives of Hawaii need to consider getting their property insured, though it is not necessary by law to get homeowners insurance.


In Hawaii, insurance policies may slightly differ from other areas due to the unpredictable weather conditions. Therefore, it is crucial to understand the importance of proper research about insurance companies and their policies before getting your house or property insured in Hawaii.

For more assistance, please contact your local state department of insurance:

Hawaii Department of Insurance

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