Best homeowners insurance companies in Hawaii for 2024

Compare the best homeowners insurance companies in Hawaii

Based on our review of the top Hawaii home insurance providers, Allstate, Ocean Harbor Insurance Group and State Farm stand out as some of the best carriers. Based on our research, and data from Quadrant Information Services, these home insurance companies offer affordable rates, multiple coverage options, generous discounts and good scores in the J.D. Power 2023 U.S. Home Insurance Study.

The top 4 home insurance companies in Hawaii

Additional Hawaii home insurance companies to consider

First Insurance Company of Hawaii (FICOH)

Liberty Mutual

Cheapest home insurance companies in Hawaii

For those seeking to minimize their expenses without sacrificing quality, exploring the cheapest home insurance companies in Hawaii is a prudent step. The table below showcases the five most budget-friendly insurance providers in Hawaii, offering a blend of competitive pricing and reliable coverage.

How to get cheap Hawaii home insurance

Home insurance can provide financial security and peace of mind even if you don’t have a mortgage that requires it. Without a homeowners policy, you'll have to pay for damages, repairs or replacements out of pocket. In Hawaii, buying a home insurance policy will set you back far less than in most states. Follow the steps below to help you find the best cheap home insurance in Hawaii.

• Assess coverage needs: Before looking for a policy, you'll want to know the types and amounts of coverage that will meet your needs. This is often based on the cost of replacing a home.
• Shop around: To find the best rates, it often helps to pull quotes from multiple insurers so that you can see what each will offer you. When doing this, it's important to specify the same types and amounts of coverage on each quote.
• Select a company: Once you've received your quotes, it's time to review them and select your preference. This may be the cheapest one, or it might be one that offers unique perks or coverage options.
• Apply for a policy: Once you've selected the company, it's time to apply for a policy. You can usually apply online, over the phone or in person. Online applications tend to be the most accessible.

Best home insurance discounts in Hawaii

Even with average rates as low as they are in Hawaii, finding lower rates won't hurt. Company discounts can be an excellent way to lower your rates further. Keep in mind that discounts vary by company and eligibility requirements vary between discounts. Below are some of the home insurance discounts that may be found across the Aloha State, as recommended by the state government's Consumer Guide to Home Insurance.

How to save on home insurance policy renewals in Hawaii

When it's time to renew your home insurance policy in Hawaii, there are several strategies you can employ to potentially reduce your premiums. These tips are particularly helpful given Hawaii's unique insurance market, where homeowners often seek ways to balance comprehensive coverage with affordability.

• Review your coverage: Regularly assessing your policy to ensure it aligns with your current needs can lead to cost adjustments.
• Ask about discounts: Check with your insurer for any qualifying discounts, such as those for security enhancements or a no-claim record.
• Increase your deductible: A higher deductible can lower your premium, but ensure it's an amount you're comfortable paying in case of a claim.
• Compare rates: Shop around and compare quotes from various Hawaii homeowners insurance companies before renewing to find the best rate.

How much is home insurance in Hawaii?

The average cost of homeowners insurance in the Aloha State is $1,191 per year for $300,000 in dwelling coverage, which is significantly less than the national average of $2,270 per year for the same amount of coverage.

Hawaii's low home insurance rates could be due to windstorm coverage being excluded from most home insurance policies. Hurricanes are one of the most prominent natural disasters in the area and homeowners must purchase standalone windstorm or hurricane coverage. Depending on the structure, age of the home and several other factors, the cost of hurricane coverage can be between a few hundred and a few thousand dollars per year. Hawaii is one of 19 states with a windstorm deductible that is separate from the homeowners insurance policy flat deductible. It usually ranges between one and five percent of the total policy premium.

According to Hawaii Wildfire Management Organization (HWMO), 0.5 percent of land burns every year in Hawaii, which is on par with the average amount of wildfire damage that occurs in the western states. Historically, wildfire damage is a covered peril under most home insurance policies.

Hawaii home insurance rates by city

Homeowners insurance rates in Hawaii can vary significantly based on the city you reside in. Factors such as local climate risks, crime rates and the general cost of living in different cities contribute to these variations. Below, a map and a searchable data table provide a detailed view of how insurance rates differ across various Hawaiian cities. This information can be helpful for homeowners to understand the potential cost differences in insurance premiums depending on their specific location within the state.

*Rates are for $300,000 in dwelling coverage

What does home insurance cover in Hawaii?

A standard HO-3 home insurance policy is the most popular choice in Hawaii, covering your main dwelling and other structures on an open-peril basis. This means it offers protection against all risks except those specifically excluded in the policy. The HO-3 policy is a hybrid type, providing named-peril coverage for personal property, while the dwelling and other structures are covered on an open-peril basis.

Key covered perils relevant to Hawaii under an HO-3 policy include:

• Volcanic eruptions: Given Hawaii's unique geological features, this coverage is crucial for protection against damages from volcanic activity.
• Windstorms: Essential for protection against damages from tropical storms and hurricanes, common in the Hawaiian Islands.
• Fire or lightning: Standard coverage that is particularly important due to the risk of wildfires in certain areas of Hawaii.

However, it's important to note that standard HO-3 policies in Hawaii do not cover all perils. Exclusions commonly include earthquakes, flooding, and damage from water backup​​​​​​.

Additional home insurance coverage types 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, 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 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 federally backed National Flood Insurance Program or private flood 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.

Common Hawaii home insurance problems

Hawaii’s geography plays a large factor in the challenges that homeowners might face. Hurricanes, tropical storms, wildfires and volcanic eruptions are some of the natural disasters that can drive up insurance rates on the islands. Homeowners might also struggle to find providers writing policies in Hawaii. After the 2023 Maui wildfire, Universal Property and Casualty Insurance Co. withdrew its insurance coverage within Hawaii. As such, Hawaiians might not have as many options when choosing an insurance provider.

Here are some specific challenges faced by consumers in Hawaii:

• High risk of natural disasters: Hawaii's location in the Pacific makes it prone to various natural disasters such as hurricanes, tsunamis and volcanic eruptions. This elevated risk can lead to higher insurance premiums or even difficulty in finding coverage.
• Limited insurance providers: The island’s isolation and unique risks can result in a limited number of insurers willing to offer home insurance. This reduced competition may lead to higher prices and fewer choices for consumers.
• Exclusions in standard policies: Standard home insurance policies in Hawaii may exclude coverage for certain risks like floods or volcanic eruptions. Homeowners may need to purchase additional policies or riders, adding to the overall insurance cost.
• Regulatory environment: Hawaii's insurance regulations and requirements can impact the availability and terms of home insurance.
• Impact of climate change: The increasing effects of climate change, such as rising sea levels and more severe weather events, are likely to exacerbate insurance challenges in Hawaii, potentially leading to further restrictions or higher costs in home insurance policies.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.