Homeowners insurance in Hawaii

The home insurance market in Hawaii

Hawaii homeowners paid $645.2 million in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

State Farm writes about 30% of the market and PURE, the high-net-worth insurer in Tokio Marine's group, 16%. Korean insurers Hyundai Marine & Fire and DB Insurance sit in the top 10 alongside Honolulu-based Island Insurance.

What sets Hawaii apart is how hurricane risk is bought. The Insurance Division's 2026 premium guide describes the typical HO-3 as excluding hurricane and prices separate hurricane-only policies, including from local writers Zephyr Insurance and Laulima Exchange; only a few insurers, such as Hyundai Marine & Fire, quote hurricane included. The guide marks American Family Connect, two Travelers companies and Chubb's Pacific Indemnity as renewals only (rates effective December 1, 2025).

What drives home insurance costs in Hawaii

The Insurance Division points to hurricanes, lava, floods and wildfires packed into a small area, plus claim costs, a shortage of skilled tradespeople, litigation and reinsurance. Lava is the odd one out: the Division notes it cannot be mitigated, which is why most insurers will not write new policies in Lava Zones 1 and 2 on Hawaii Island at any price.

The August 8, 2023 Maui wildfires changed the market. In the Division's data call, more than 200 insurers reported $3.03 billion paid through December 31, 2025 and $3.55 billion in estimated total losses across all lines, including $1.49 billion paid on 5,323 residential property claims, 1,732 of them total losses. In February 2025 the Hawaii Supreme Court ruled that insurers could not bring their own suits against the parties blamed for the fire, clearing the way for a roughly $4 billion global settlement (AP). See Hawaii's home insurance market after Lahaina.

In 2026 a Kona low in March, Tropical Storm and Hurricane Lala in August, then Hurricane Lowell and Tropical Storm/Hurricane Nolo each prompted a declaration letting out-of-state adjusters work temporarily. A U.S. Senate Budget Committee report put Hawaii's 2023 nonrenewal rate at 1.32%, up 216% since 2018.

The NAIC put Hawaii's average HO-3 premium at $1,549 for 2023, below the countrywide $1,737. Hurricane cover can be a separate bill: in the Division's sample for a $400,000 Oahu house, hurricane-only premiums ran from $545 to $4,974 a year depending on insurer, construction and wind-resistive devices.

Deductibles and coverage rules to know

No Hawaii statute caps hurricane deductibles or sets a trigger. The Division says hurricane coverage "may be provided through a separate policy or endorsement" with its own deductible, and that most companies use a 72-hour clause: once the Central Pacific Hurricane Center issues a hurricane watch or warning, damage in the following 72 hours falls under the hurricane policy. Most sample hurricane-only quotes in the 2026 guide carry a 2% deductible. On a $400,000 dwelling limit that is $8,000 before the policy pays; the hurricane and percentage deductible calculator runs other numbers, and hurricane and named-storm deductibles explained covers triggers. Lenders require hurricane insurance when there is a mortgage.

After Lala, Commissioner's Memorandum 2026-7A told insurers that a watch, warning or storm name "does not, by itself" decide which coverage or deductible applies. Hawaii County was under a Hurricane Warning on August 13 before Lala reached hurricane strength on August 15, so check your policy's definition of a hurricane occurrence.

Other rules:

• Lava. Policies differ, but the Division says damage from fire caused by a lava flow's heat may be covered as fire. See volcanic eruption coverage: ash, lava and what your policy pays.
• Exclusions. The Division's guide lists flood, surface water, sewer backup, tidal waves, earthquake and landslide among standard HO-3 exclusions.
• Notice. For residential property, an insurer must give 20 days' written notice to cancel (10 days for nonpayment or material misrepresentation) and 30 days to nonrenew (HRS §431:10-226.5, amended 2025). It may not cancel, nonrenew or rate a homeowners policy based on a mere inquiry that discloses nothing new (HRS §431:10E-124).

Flood and other gaps

FEMA counted 64,517 NFIP policies in Hawaii as of September 30, 2026, up 3,360 in a year while the national count fell, with 44,426 in Honolulu County. The Division reminded residents in August 2026 that NFIP coverage generally takes 30 days to start; see NFIP flood insurance explained. Condo owners need both an HO-6 and a sound association master policy (condo master policies: what the association covers and what you cover).

If you can't find coverage

The Hawaii Property Insurance Association was created by the 1991 Legislature for homes in Lava Zones 1 and 2 and expanded statewide after Hurricane Iniki. It is an association of all licensed property insurers, not a state agency. Its rules, as posted:

• You need declinations from at least two licensed insurers. Eligible: one- or two-family dwellings and individual condo or apartment units used as residences; vacant homes and homes with a business on site are not.
• It offers dwelling, homeowners, renters and unit-owners policies with limits of $50,000 to $450,000 and deductibles of $500 to $3,000, covering basic perils such as fire, lightning and vandalism.
• A licensed agent submits the application with a $250 deposit; HPIA issues no binders and no payment plans.
• HPIA says its coverage is usually costlier and narrower than private policies. After the 2018 eruption, it raised rates for Lava Zones 1 and 2.

Act 296 (SB 1044), passed in 2025, temporarily widened HPIA's authority and gave the dormant Hawaii Hurricane Relief Fund new work. The HHRF sells excess hurricane-only coverage to condominium and townhouse associations with more than $10 million in insured value and two declinations, above a primary hurricane policy of at least $10 million, up to $140 million, with a 2% per-building deductible. It does not insure individual units. Otherwise, the fallback is surplus lines home insurance when standard carriers say no; FAIR plans explained: the insurer of last resort for homes compares plans.

Claims rules and deadlines

Hawaii's unfair claims statute (HRS §431:13-103(a)(11)) bars insurers, as a general business practice, from failing to respond to claim communications within 15 working days, failing to affirm or deny coverage within a reasonable time after proof of loss, failing to offer payment within 30 calendar days of affirming liability when the amount is undisputed, and failing to explain in writing why a claim is unresolved after 30 days.

Memorandum 2026-8A asks insurers, through January 7, 2027, to give policyholders hit by Lowell, Lala or the Kona low grace periods, payment plans, waived late fees and more time for inspections. Under Memorandum 2026-6A, public adjuster fees above 10% on claims from a declared emergency, or 15% otherwise, are presumed unreasonable for contracts signed on or after August 17, 2026 (public adjusters: when to hire one and what they cost).

Hawaii has no state-run property claim mediation program; disputes go to the policy's appraisal clause, a Division complaint or court. A policy may not cut the time to sue to less than one year from the date of loss (HRS §431:10-221), so read your "suit against us" clause and talk to an attorney early.

Discounts and mitigation programs

The Division says some insurers give premium credits for hurricane roof clips, opening protection and foundation anchors, and its premium guide shows how those features change hurricane quotes. Hawaii has no state retrofit grant program: a "Strengthen Hawaii Homes" grant bill (HB 1467) passed the House in March 2025, was deferred in a Senate committee and saw no further action in 2026.

Where to get help

The Hawaii Insurance Division takes questions and complaints at 844-808-3222 (1-844-808-DCCA) and [email protected], weekdays 7:45 a.m. to 4:30 p.m. Hawaii time. It suggests speaking with an investigator before filing a complaint online. Offices: 335 Merchant Street, Room 213, Honolulu, HI 96813; mail to P.O. Box 3614, Honolulu, HI 96811. See how to file a complaint with your state insurance department, and use the nonrenewal action plan if you get a nonrenewal notice.