4 Best Homeowners Insurance Companies in Hawaii (2024) (2024)

After conducting an in-depth analysis, we have picked the following home insurance providers as our top choices for residents of Hawaii.

• Liberty Mutual: Our pick for discounts
• Allstate: Our pick for extended coverage
• State Farm: Our pick for new homeowners
  
• Tokio Marine: Our pick for local presence

According to 2023 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in Hawaii is $782, which is the lowest state average and significantly lower than the national average of $2,511.25.

Hawaii home insurance premiums are low compared to average rates in other states. Average annual home insurance costs in Hawaii are $782, which is less than one-third of the national average. The caveat is that the most common home damage experienced in Hawaii is caused by flooding and high winds, neither of which are covered under a standard policy.

Homeowners in Hawaii would have to pay for hurricane insurance on top of their standard home insurance policies. This type of coverage can include both flood and damaging wind endorsem*nts. Adding hurricane insurance can cost Hawaii homeowners anywhere from an extra $250 a year for a new construction to as much as $2,000 for older homes.

Home insurance rates are calculated using many factors. Insurance companies consider geographical factors such as a high prevalence of weather events or natural disasters. Providers also take into account local risks such as crime rates and proximity to fire stations. Insurance agents also look at the age and condition of a home in addition to the policyholder’s credit score and previous claim history.

Hawaii sees lower-than-average crime rates compared to other parts of the country. Additionally, many of the most serious issues that cause home damage in Hawaii are either infrequent or not covered by standard policies. These factors are part of the reason that homeowners insurance premiums are lower in Hawaii than in many other states.

The most common home insurance claims for Hawaiian residences include:

• Wind damage
• Water damage
• Fire and lightning

Many mortgage lenders in Hawaii require homeowners to carry standard home insurance plus flood insurance and coverage for high winds due to the prevalence of tropical storms. Residents may want to consider these factors when determining homeowners insurance costs.

Regardless of lender requirements, we suggest Hawaii residents carry homeowners insurance and flood insurance at a minimum. It would be wise to add protection for storm winds as well.

In addition to a robust homeowners insurance policy, Hawaii homeowners can take several steps to protect their homes from natural hazards such as these:

• Install hurricane ties
• Install shutters or shatterproof glass to protect windows
• Retrofit roofs to disperse the load to the full structure
• Use wet or dry floodproofing measures
• Keep gutters clear of debris to allow free flow of water

Recommended Home Insurance Coverage in Hawaii

Investing in a comprehensive standard HO-3 home insurance policy with a reputable carrier can provide much of the protection needed by the average homeowner.

Dwelling Coverage

Dwelling coverage protects the physical structure of your home. It typically covers damage caused by common weather events, fire, vandalism and theft. It will pay to repair or even replace your home within the limitations of your home insurance policy. Dwelling coverage also includes other structures attached to your home such as garages or decks.

Personal Property Coverage

While dwelling coverage takes care of the actual structure of your home, personal property coverage pays to repair or replace the items within it. This includes furniture, clothing, detached appliances, computers and other personal items like sports equipment. Personal items stored in another location may also have limited coverage.

Liability Coverage

Liability coverage will help pay for damages to other people or their property caused by the policyholder, a family member or their pet. Pet owners should be aware that many insurance carriers exclude certain animal breeds from coverage. Read contracts carefully to ensure your pet is covered.

Liability coverage will also pay a portion of medical bills incurred by visitors injured in the policyholder’s home. This coverage can help homeowners avoid liability claims made against them.

Loss of Use

If a home gets severely damaged or destroyed by a covered event, loss of use coverage will assist with additional living expenses homeowners incur during repairs. Expenses include the cost of a temporary residence like a hotel, purchasing meals and transportation costs. Loss-of-use coverage may include other incidental costs, such as pet boarding.

Mortgage providers will likely require Hawaii homeowners to carry homeowners insurance and additional hurricane insurance. However, purchasing a standard home insurance policy can still benefit Hawaiians who own their homes outright. Generally, we recommend the following endorsem*nts for all Hawaii homeowners:

• Flood insurance: Given the high incidence of tropical storms and hurricane conditions in Hawaii, homeowners can protect their homes from the potentially disastrous effects of flood damage.
• High-winds coverage: While many insurance companies include wind damage in standard policies, it may not be enough protection for areas prone to tropical storms and hurricanes. Hawaii homeowners should ask their insurance agents about extended wind coverage.
• Earthquake Insurance: Severe earthquakes are not common in Hawaii, but thousands of minor quakes occur every year. A single earthquake can destroy a home and homeowners should have enough coverage to replace their residence if it is lost to a natural disaster.

Individual circ*mstances will determine whether an insurance agent recommends you purchase more endorsem*nts than those listed above. For example, homeowners with rare or particularly expensive personal property such as jewelry, antiques, collectibles or musical instruments may consider extended personal property coverage. Homeowners buying or building homes in areas with strict local ordinances or building codes may benefit from ordinance or law coverage to help defray the extra costs of getting their homes up to code.

Nearly 60% of homes in Hawaii are owner-occupied, according to the U.S. Census Bureau. If you are a Hawaii homeowner, a homeowners insurance policy through a reputable insurance company is one of the best ways to protect your investment.

We picked Liberty Mutual, Allstate, State Farm and Tokio Marine as the top homeowners insurance providers in the state of Hawaii. Liberty Mutual offers some of the best discounts in the industry, and Allstate has an extensive selection of additional coverage. State Farm’s user-friendly knowledge base is helpful for new homeowners making their first insurance purchase, while Tokio Marine offers local insurance professionals with an understanding of Hawaii homeowners’ needs.

We suggest homeowners request multiple quotes from different insurance companies to find the home insurance coverage they need at the best price.

Get instant quotes from insurers by entering your ZIP code below.

Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:

• Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
• Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
• Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
• Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.

Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

AM Best Disclaimer

Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He's surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners' common pain points and needs. When he's not helping his readers make informed decisions, he's reading a book a week, planning a camping trip or working on his novel draft.

Ryan Lasker is a financial writer and editor with bylines in Morning Brew, The Motley Fool, and several more. As a certified public accountant, he leverages his technical expertise in personal finance and tax to fuel his passion for teaching financial literacy. When he's not writing, editing or working in a spreadsheet, he's biking the D.C. trails or reading.