Best Home Insurance Rates In Hawaii

On average, your neighbors pay $84 a month.

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Compare Homeowners Insurance In Hawaii

The Hawai’ian islands offer beautiful beaches, world-famous surfing, and a rich indigenous culture. Hawaii was the birthplace of President Barack Obama and the steel guitar. However, the volcanic islands of The Aloha State contain some major homeowners insurance hazards too.

Average Hawaii Homeowners Insurance Rates

How much is home insurance in Hawaii? Hawaii is slightly below the national average when it comes to average home insurance rates. The average cost of homeowners insurance in the state of Hawaii was $1,014 slightly lower than the national average of $1,173. There are 22 states that have higher average home insurance rates than Hawaii.

Hawaii Average Annual Homeowners Insurance Rates
  2013 2014 2015
Hawaii Annual Average $953 $1,018 $1,014
Hawaii Price Per Month $79 $85 $84
US Annual Average $1,096 $1,132 $1,173
US Cost Per Month $91 $94 $98
National Rank 22 22 29
Source: Facts + Statistics: Homeowners insurance

The graph below shows the change in average Hawaii home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Hawaii homeowners insurance rates increased from $907 in 2011 to $1,014 in 2015, a jump of $107 dollars, or 11.80 percent.

Hawaii average homeowners insurance rates

Choosing a homeowners insurance company in Hawaii should be easier. Actually, it’s already easy. The key to finding the best rates is to compare homeowners insurance quotes in Hawaii from multiple companies.

Most Popular Hawaii Home Insurance Companies

Last year, these were the 10 most common home insurance companies reported by QuoteWizard users living in the state of Hawaii. Out of the 1,481 Hawaii homeowners that used QuoteWizard to request insurance quotes last year, 75 had no home insurance.

  1. Allstate
  2. GEICO
  3. Liberty Mutual
  4. Farmers
  5. American Family
  6. Progressive
  7. USAA
  8. AAA
  9. Country Financial
  10. Hartford
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Best Homeowners Insurance Companies in Hawaii

The above list shows the most popular home insurers in Hawaii according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
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Hawaii Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Financial Rating Market Share
1 Tokio Marine Holdings Inc. A++ 10.2%
2 GEICO A++ 7.3%
3 USAA A++ 5.5%
4 Island Insurance A 5.4%
5 AIG A 4.7%
6 Allstate A+ 3.8%
7 Ocean Harbor Group B 3.8%
8 Liberty Mutual A 3.6%
9 MS & AD Insurance Group NR 3.3%
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Hawaii Home Insurance Rate Factors

Insurance companies use several parameters to calculate your homeowners insurance rates. Some of these factors, like insurance claims history, are specific to you and your home. Other factors, like weather risks, affect Hawaii homes.

Your Personal Rate Factors

Your House

How much you’ll pay for insurance depends on your home. Specifically, insurers focus on a few important characteristics:

  • Your home’s age. Generally, old homes come with high insurance rates. As a home ages, so does the chance of it needing a major repair. That makes old homes more likely to have hefty insurance claims. The majority of HI homes are more than 35 years old – 8 percent were built between 1970 and 1979.
  • The quality of your roof. The secret to affordable home insurance could be right in front of you (or right above you). A home with a well-maintained roof still within its lifespan is cheaper to insure. That’s because your roof can be the difference between serious repairs and minor damage after a disaster. In Hawaii, for example, clear rain gutters and downspouts before a hurricane or heavy rainstorm to reduce water build up and flooding.
  • Your home’s replacement cost. This is the dollar amount it takes to build your home from the ground up after a disaster. Your dwelling/structure coverage, a huge part of a home insurance policy, should match your home’s replacement cost. A higher replacement cost means higher premiums. Replacement cost depends on the style, quality, and size of your home. It’s not the market price, as it doesn’t account for land value. For example, an $800,000 home in Wailea may actually have a lower replacement cost than a $500,000 house in Honolulu.

Claims History

If you file a claim, your rates go up. It’s that simple. Claims stay on your record for five to seven years. Filing multiple claims during that time span can make your rates skyrocket. Some companies even refuse to cover homeowners with multiple recent claims under their belt. That’s why homeowners avoid filing any unnecessary claims.

Coverage

Your home insurance policy price depends on how much coverage you want. Every policy is customizable, and you can buy more (or less) coverage depending on your personal needs. For example, if you own expensive jewelry or collectables, you’ll want to add a rider. If you have considerable assets or a high net worth, you’ll want extra liability or an umbrella policy. And if you have a large home, you’ll want strong structure coverage. 20.7 percent of Hawaii homes have five rooms.

Credit Score

Your credit score plays a big role in determining your insurance rates. Companies look at your credit score when calculating your rates. People with bad credit scores pay more for homeowners insurance. Hawaii has the 10th best average credit score in the country.

Hawaii Rate Factors

Weather

HI is the 40th most natural disaster-prone state in the country. Areas with high weather risks have higher than average homeowners insurance rates. Because it is a collection of islands, Hawaii is exposed to bouts of problematic weather.

No matter where in the islands you live, you could encounter one of these natural disasters:

  • Tsunamis
  • Floods
  • Hurricanes
  • Earthquakes
  • Wildfires

In Hawaii, there is a high chance of flooding and earthquakes. Homeowners insurance doesn’t cover flood or earthquake damages. Make sure to buy separate policies before a storm hits. According to the Hawaii Emergency Management Agency, there are steps you can take to limit damage caused by natural disasters:

  • Board up windows before a hurricane
  • Clear rain gutters and downspouts
  • Buy flood insurance

Property Crime

Property crime hurts both your safety and your insurance prices. Areas with a high property crime rate also have high homeowners insurance rates. HI has the 15th highest property crime rate in the country. In 2017, the state had an average property crime rate of 2,829.5 per 100,000 residents.

But property crime rates vary depending on where in HI you live. For example, Kailua has an annual average of 20.41 property crimes per 1,000 residents. Hilo, on the other hand has an average of 38.6 property crimes annually per 1,000 residents.

Similar to preparing for a storm, there are steps you can take to prevent a burglary in your home. These include: alarms, security cameras, deadbolt locks, and more.

Types of Home Insurance Policies

Homeowners have several policy options when it comes to shopping for home insurance. In HI, you can choose from these insurance types:

  • HO-1: This is the most basic insurance policy. HO-1 covers normal damages.
  • HO-2: This is a broad homeowners insurance policy. HO-2 covers everything in HO-1, plus falling objects and damages to AC units, pipes, and other home systems.
  • HO-3: This is the most popular homeowners policy type. HO-3 covers all damages unless specifically excluded. It also covers unattached structures.
  • HO-5: This is a comprehensive policy like HO-3, but it comes with more coverage and less property claim limitations. HO-5 is considered a premium policy.
  • HO-6: If you own a condo, this is the policy for you! HO-6 covers possessions and provides liability for condo owners.
  • HO-7: This policy offers similar coverage as HO-3, but it is made specifically for mobile homeowners.
  • HO-8: If you own an old home, you may need a policy tuned to its needs. HO-8 is like HO-3, but for older homes.

Hawaii Department of Commerce and Consumer Affairs - Insurance

Website:
Homepage
Insurance Commissioner:
Gordon I. Ito
Insurance Hotline:
(808) 586 – 2790
Office Hours:
Monday - Friday
7:45 am to 4:30 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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