September 9, 2025
Hawaii has the nation’s lowest base home insurance rates at $613, but separate hurricane, flood, and earthquake policies are often required and raise total costs.
Hawaii's home insurance market presents unique challenges for homeowners and mortgage servicers alike. While the state reports the lowest base homeowners insurance rates in the nation at approximately $613 annually, this figure represents only standard homeowners coverage and excludes hurricane, flood, and earthquake insurance—coverage types that are often required by mortgage lenders or strongly recommended due to the state's natural disaster risks.
Hawaii ranks as the most affordable state for base homeowners insurance, with reported annual premiums averaging $613, significantly lower than the national average of $2,601. However, standard home insurance policies in Hawaii exclude hurricane damage, which explains the lower base premiums compared to other states.
Important Disclosure: Base premium comparisons exclude hurricane, flood, and earthquake insurance, which are often required or recommended in Hawaii and can significantly increase total coverage costs.
Rate estimates vary among data sources, ranging from $454 according to MoneyGeek's 2024 analysis to $593 per year according to Insure.com's data. These variations typically depend on coverage amounts, methodology, and data collection periods.
Source: Insurance.com 2025 Analysis
Note: Rates shown are for base homeowners coverage only and exclude hurricane, flood, and earthquake insurance.
According to NerdWallet's 2025 analysis, Hawaii's base rates are approximately 71% lower than the national average, though total coverage costs may vary significantly when mandatory or recommended add-on policies are included.
Base rates appear low because standard policies exclude hurricane coverage, which mortgage lenders typically require separately for financed properties. According to Hawaii's Department of Commerce and Consumer Affairs, banks require homeowners to have hurricane insurance as part of mortgage approval.
This requirement stems from Hurricane Iniki's impact in 1992, when the category 4 storm caused extensive damage to Kauai and parts of Oahu. Following the hurricane, many insurance companies stopped writing hurricane policies in Hawaii, necessitating separate coverage arrangements.
Hurricane insurance costs can range from two to three times the annual premiums of conventional homeowner policies, according to industry reports.
Properties in Lava Zones 1 and 2 on the Big Island face coverage limitations. The 2024 withdrawal of Universal Property and Casualty Insurance Co. has reduced options for approximately 1,500 policies statewide. The primary remaining option is the Hawaii Property Insurance Association (HPIA), established by the state to provide coverage when private markets are unavailable.
According to Civil Beat reporting, some lava zone properties experienced premium increases from $1,500 in 2022 to $5,000 the following year, illustrating the volatility in high-risk areas.
The 2023 Maui wildfires significantly affected Hawaii's insurance market. According to U.S. News reporting, insurers recorded losses in 2023 that were 675.6% higher than 2022.
According to ValuePenguin's 2024 analysis, home insurance costs increased 23.2% in Hawaii over a six-year period, with an 11.3% increase in 2024 compared to 1.9% in 2023.
Hawaii's condominium market faces coverage complications. According to Hawaii Business Magazine reporting, approximately 390 buildings have master insurance policies with less than 100% replacement coverage. This situation affects mortgage availability, as most local banks require full replacement coverage for lending approval.
Established in 1991, HPIA provides coverage for properties unable to obtain private market insurance, primarily in lava zones. According to Honolulu Star-Advertiser reporting, HPIA currently maintains approximately 2,200 policies covering $900 million in property value. The organization had $34 million in reserves at the end of 2024.
The Hawaii Hurricane Relief Fund was created in 1993 following Hurricane Iniki. The fund ceased issuing new policies in 2000 when private markets resumed hurricane coverage. Recent legislative proposals aim to reactivate both HPIA and HHRF to address current market challenges.
Hawaii homeowners typically need multiple policies for comprehensive protection:
According to U.S. News analysis, State Farm received the highest rating among Hawaii insurers based on their evaluation criteria. ValuePenguin's analysis indicates State Farm's rates average approximately 23% below market averages and remained stable through 2024.
Other options analyzed include:
Note: Rankings and performance assessments are based on third-party analyses using specific criteria and time periods. Individual experiences may vary.
For mortgage servicers seeking to provide enhanced customer support while managing operational costs, partnering with Covered can facilitate expert insurance guidance. Through warm transfer protocols, servicers can connect borrowers with insurance specialists who understand Hawaii's unique coverage requirements. This approach may help customers identify appropriate coverage options while ensuring compliance with lending requirements. Results and experiences vary by individual circumstances and market conditions.
Hawaii homeowners can explore several approaches to manage insurance expenses:
Note: Actual savings depend on individual circumstances, property characteristics, and market conditions.
Hawaii's insurance market continues adapting to emerging challenges. In August 2024, Governor Josh Green issued an emergency proclamation to expand state insurance programs for condominium associations facing coverage difficulties. Hawaii lawmakers continue developing legislation to address market gaps through HPIA and HHRF expansion.
While Hawaii maintains relatively low base homeowners insurance rates, comprehensive coverage—including hurricane, flood, and earthquake protection—creates more complex cost structures. Property owners and their advisors should carefully evaluate complete coverage needs and work with knowledgeable professionals to navigate the state's unique insurance requirements.
This analysis is based on publicly available information and third-party research. Insurance requirements, rates, and availability are subject to change. Readers should consult with licensed insurance professionals for current information specific to their circumstances.
This article provides general information about Hawaii’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
Hours of Operation
7 AM to 8 PM CDT
Closed
Closed
Call Us
833-487-2683
*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
