Paul Sanchez
Living near an active volcano in Hawaii comes with risks that homeowners must consider when purchasing insurance. While there is no specific volcano or lava flow insurance, damage caused by volcanic eruptions may be covered by standard homeowners' insurance policies, depending on the zone and the level of risk. Hawaii has 9 lava zones for its 5 volcanoes, with zones 1 and 2 being the riskiest and zone 9 being the least risky. The risk is determined by factors such as the locations of probable eruption sites, past eruption patterns, and the frequency of lava flow in an area. Living in a high-risk zone may make it challenging to obtain insurance, and supplemental policies for earthquakes, landslides, and floods may be necessary to ensure adequate protection.
| Characteristics | Values |
|---|---|
| Number of lava zones | 9 |
| Risk level of lava zones | 1 is highest, 9 is lowest |
| Factors determining lava zones | Location of probable eruption sites, past eruption sites, paths of lava flows, frequency of lava flow inundation of an area over the past several thousand years |
| Purpose of lava zone maps | To determine long-term hazards, assuming future eruptions are similar to the past |
| Risk factors | Eruptive style, geographic location |
| Insurance coverage | Damage from volcanic eruptions may be included in homeowners' insurance policies, commercial property insurance, commercial auto insurance, and other business insurance policies |
| Additional insurance | Earthquake insurance, flood insurance |
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What You'll Learn
There is no separate volcano insurance
In Hawaii, the Hawaii Property Insurance Association (HPIA) was established to fill a gap in the insurance market. The Hawaiian legislature noted that the "actual and potential losses caused by the [ongoing] volcanic activity [on the Big Island in particular] has also resulted in the unavailability of basic property insurance for persons having insurable interests in properties in the vicinity which has caused great personal suffering and financial hardship." The HPIA issues coverage for perils including fire and volcanic eruption.
Volcanic eruptions can cause a variety of destructive events, and it's important to check with your insurance provider to make sure you're adequately protected. For example, standard policies won't cover damage caused by earthquakes, even when they coincide with a volcanic eruption. You will need to add a separate earthquake policy to your coverage to protect you against this disaster. Similarly, landslides or mudslides caused by volcanic eruptions won't be covered in standard homeowner's insurance policies, but the addition of an earthquake policy will allow you to be reimbursed for these disasters.
In addition, flood damage caused by mudflows and flash floods is common after volcanic eruptions, and flood insurance will protect you against these dangers. Some policies will also cover the cost of cleanup of ash, but it's important to check with your insurer to see how much, if anything, your policy will cover.
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Homeowners insurance may cover lava damage
While there is no separate volcano or lava flow insurance, homeowners insurance may cover damage to your home and personal property from a volcanic eruption, including volcanic blasts, lava flows, ash, and any related fires or explosions. However, it is important to note that this coverage is rare and may not be available in all areas.
In Hawaii, the risk associated with volcanic eruptions is measured by the United States Geological Survey (USGS), which has identified 9 lava-flow hazard zones on the Island of Hawaii, with Zone 1 being the most likely to experience lava flow and Zone 9 the least likely. Living in a high-risk zone, such as Zones 1 or 2, can make it difficult to obtain traditional homeowner's insurance that covers lava damage. Some insurance companies, such as State Farm, have stopped writing homeowners' policies in these high-risk zones.
If you live in a high-risk area, you may need to obtain insurance through a specialized association like the Hawaii Property Insurance Association (HIPA). Additionally, you may need to add endorsements to your policy or purchase separate policies to cover specific risks associated with volcanic eruptions, such as earthquake insurance or flood insurance.
It is crucial to carefully review your homeowners insurance policy to understand what is covered and what exclusions may apply. Some policies may specifically exclude lava damage, while others may cover losses caused by volcanic blasts, airborne shock waves, ash, dust, or lava flow. It is also important to note that most standard policies do not cover damage from earthquakes, landslides, mudslides, or other earth movements, even if they are triggered by a volcanic eruption.
To ensure you have adequate coverage, it is recommended to consult with an experienced insurance agent or REALTOR® who can help you determine the specific risks associated with your property's location and guide you in obtaining the necessary coverage.
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Risk zones are based on past eruptions
In Hawaii, risk zones are determined by the United States Geological Survey (USGS) and are based on the history of lava flow activity, the location of eruptive vents, past lava coverage, and topography. The maps outlining these zones were first prepared in 1974 and have been revised over the years.
The Island of Hawaii has nine lava-flow hazard zones, with Zone 1 being the most hazardous and Zone 9 the least hazardous. Zone 1 includes the summits and rift zones of Kilauea and Mauna Loa volcanoes, where vents have been repeatedly active historically. Zone 2 includes areas adjacent to and downslope of Zone 1, with 15-25% of this area covered by lava since 1800. Zone 3 is less hazardous due to its distance from active vents and/or topography, with 1-5% covered by lava since 1800. Zone 4 covers all of Hualalai, with a lower frequency of eruptions and smaller lava coverage.
The hazard zones also consider structural and topographic features that would influence the direction of lava flows. The maps are intended to communicate long-term hazards, with the assumption that future eruptions will resemble past events. For instance, Kilauea and Mauna Loa have a history of erupting at their summits and/or along their rift zones, so future eruptions are likely to follow suit.
The maps are a valuable tool for residents, helping them understand the risks posed by the volcanoes on the islands. They also guide the placement of critical community facilities in the safest possible areas.
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Risk is measured by the probability of lava flow
In Hawaii, the risk of volcanic activity is a fact of life for many homeowners. The Kilauea volcano, for instance, has been erupting almost continuously since 1983. As such, it is important for residents to understand their insurance coverage in the event of a volcanic eruption.
Volcano insurance or lava flow insurance does not exist as a separate policy. However, damage caused by volcanic eruptions may be covered by homeowners' insurance policies, commercial property insurance, commercial auto insurance, and other business insurance policies. This coverage is either part of the standard policy or an endorsement that can be added if the property is in a risk area.
The probability of lava flow is assessed using the Lava Flow Hazard Map for Hawai'i Island, which divides the island into nine lava zones for its five volcanoes (Kīlauea, Mauna Loa, Mauna Kea, Hualālai, and Kohala). These zones are ranked from 1 to 9, with Zone 1 being the most likely to experience lava flow and Zone 9 being the least likely. The zones are based on the locations of probable eruption sites, past eruption sites, paths of lava flows, and the frequency of lava flow inundation of an area over the past several thousand years.
Properties in Zones 1 and 2 are considered high-risk and may be difficult to insure with traditional homeowner's insurance. Homeowners in these areas may need to obtain insurance through the Hawaii Property Insurance Association or seek out rare and expensive all-risk policies. Even with insurance, some losses related to volcanic eruptions may not be covered, such as damage from landslides, land tremors, earthquakes, and flooding.
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Some insurers will not cover high-risk zones
Hawaii is home to some of the world's most active volcanoes, with Kilauea, located in the Hawaii Volcanoes National Park, erupting almost continuously since 1983. Living near an active volcano comes with inherent risks, and for homeowners in these areas, it is crucial to understand what their insurance covers in the event of an eruption.
Lava flow hazard zones vary across the islands, and homes in high-risk areas, such as Lava Zones 1 and 2, may be challenging to insure with traditional homeowner's insurance policies. These high-risk zones are determined by factors such as the locations of probable eruption sites, past eruption sites, paths of lava flows, and the frequency of lava flow inundation over millennia. The boundaries of these zones are gradual, and the hazard decreases as one moves away from the eruptive vent.
While some insurance policies may provide coverage for losses related to volcanic eruptions, including damage caused by lava flow, fire, explosion, or effusion, it is important to note that not all insurers offer this coverage. Many insurance companies consider these high-risk zones too dangerous to insure, and as a result, they refuse to provide coverage for homes in these areas. This leaves residents in a difficult position, as they may struggle to find adequate insurance protection.
In such cases, residents of high-risk zones may need to explore alternative options for insurance coverage. One possibility is to obtain insurance through the Hawaii Property Insurance Association (HIPA), which was created by the Hawaii State Legislature to provide coverage for properties in high-risk areas. Additionally, Lloyd's of London is known to issue policies in these areas, although their policies have been criticised for excluding coverage for damage caused by lava and/or lava flow.
It is essential for homeowners in high-risk zones to carefully review their insurance policies and understand the scope of their coverage. Supplemental policies, such as earthquake insurance and flood insurance, may also be necessary to ensure comprehensive protection against the various destructive events that can occur as a result of volcanic eruptions.
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Frequently asked questions
All volcanoes pose a degree of risk to people and infrastructure when erupting, but the risk varies depending on the volcano's eruptive style and location. The Kilauea volcano in Hawaii, for example, is one of the most active volcanoes on Earth and has been erupting almost continuously since 1983. Living near active volcanoes like Kilauea means dealing with the constant threat of lava flow, ash, and potential damage to homes and property.
Insurance companies use tools like the Lava Flow Hazard Map for Hawai'i Island to assess volcano risk. This map, developed by the USGS, divides the island into nine lava zones based on the probability of lava flow coverage. Zones 1 and 2 are considered high-risk areas, with the lowest risk in Zone 9. The boundaries of these zones are gradual, and the hazard decreases as you move away from the eruptive vent.
Volcano insurance or lava flow insurance does not exist as a standalone policy. However, some homeowners' insurance policies may provide coverage for volcano-related damage. This coverage can include fire or explosion resulting from volcanic eruptions, as well as vandalism or theft due to looting from evacuated homes. Separate earthquake and flood insurance policies may also be added to protect against common occurrences after volcanic eruptions, such as earthquakes, landslides, and mudslides.
