Jeffrey Wade
Home insurance in Hawaii is not mandatory, but it is a good idea to have it, especially since your home is likely your most valuable asset. The cost of home insurance in Hawaii depends on several factors, including location, coverage level, provider, age of the home, and credit score. The average cost of home insurance in Hawaii is $610 per year, but rates can vary from $330 to $1,486 per year. Some of the best home insurance companies in Hawaii include State Farm, Allstate, Ocean Harbor, and AIG Property Casualty Co. To save money on premiums, consider making improvements like adding storm shutters or a home security system, or improving your credit score.
| Characteristics | Values |
|---|---|
| Average annual cost of home insurance in Hawaii | $610 |
| Average monthly cost of home insurance in Hawaii | $41 for $250,000 dwelling coverage |
| Average annual cost of home insurance in Honolulu | $585 |
| Average annual cost of home insurance in Hilo | $610 |
| Range of annual home insurance costs in Hawaii | $330 to $1,486 |
| Average annual cost of home insurance in the US | $2,151 |
| Percentage of average annual cost of home insurance in the US that Hawaii pays | 28% |
| Best home insurance companies in Hawaii | State Farm, Allstate, Ocean Harbor, AIG, DB Insurance, USAA |
| Ways to get cheaper premiums | Add storm shutters, improve credit score, add home security system |
| Additional types of insurance Hawaiian homeowners may need | Earthquake insurance, flood insurance |
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What You'll Learn
Home insurance rates in Hawaii
Home insurance in Hawaii is not mandatory, but it is a good idea to have it, especially since your home is likely your most valuable asset. The cost of home insurance in Hawaii depends on several factors, including location, coverage level, provider, age of the home, and credit score. The average monthly home insurance cost in Hawaii is $41 for a dwelling coverage of $250,000, but rates can vary from $277 to $2,210 per year.
The unique geology and micro-environments of Hawaii bring special considerations for homeowners. Flooding, for instance, is not typically covered by standard homeowners insurance policies, so homeowners in high-risk areas may need to purchase separate flood insurance. Similarly, strong winds and heavy tropical rains are common in the Aloha State, and homeowners may want to add coverage for these risks to their policies.
Some of the best home insurance companies in Hawaii are State Farm, Allstate, Ocean Harbor, AIG Property Casualty Co., and USAA. State Farm is known for its reliable coverage, good customer service, and many discounts, and its rates have remained steady despite the Maui wildfires. DB Insurance is another good option, with rates that are about 44% less than average. UPC is also one of the cheap home insurance companies in Hawaii.
There are ways to get cheaper premiums on your home insurance in Hawaii. For example, you can install a home security system or add storm shutters. Improving your credit score can also decrease premiums. Additionally, combining home and auto insurance can help you save on both policies.
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Discounts on homeowners insurance
Homeowners insurance in Hawaii is not required by state law, but it is a good idea to have it, especially given the unique geology of the state, which can lead to flooding and volcanic activity. While flooding is typically not covered under a standard homeowners policy, some providers offer it as an add-on. For example, Travelers Insurance provides up to $4 million in flood insurance through its partnership with Neptune Flood.
There are several ways to save money on homeowners insurance in Hawaii, including:
- Shop around: Compare rates from different insurance companies to ensure you're getting the best deal.
- Choose a higher deductible: Opting for a higher deductible will lower your premiums, but keep in mind that you'll have to pay more out of pocket in case of any claims.
- Bundle your policies: Combining home and auto insurance can help you save on both policies annually.
- Improve your credit score: Moving from a fair to a good credit score can save you 28% on average.
- Make home improvements: Adding storm shutters or installing a home security system can help you get cheaper premiums.
- Discounts: Ask your insurer about any available discounts. For example, Allstate offers discounts for loyalty, new home purchases, automatic payments, and devices that protect against fire or theft. If you have a certified green home, Travelers Insurance offers a 5% discount on premiums.
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Average cost of home insurance
The average cost of home insurance in Hawaii varies depending on several factors. Firstly, the location within Hawaii matters. For instance, the average cost of home insurance in Honolulu is $585 per year, while homeowners in Hilo pay $610 per year, on average. This is because Hawaii's unique geology and micro-environments present special considerations for those seeking home insurance. Flooding and strong winds, for example, can seriously damage homes, and standard homeowners insurance policies typically won't cover these hazards. As a result, homeowners in high-risk areas may need to buy separate flood insurance and wind insurance to protect themselves financially, which will increase costs.
The second most influential factor in Hawaii home insurance rates is coverage choices, averaging from $277 to $2,210 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs. The third most influential factor is home details like age, construction materials, and roof type, averaging from $23 to $41 per month. These factors affect replacement costs and the risk of damage or theft, leading to rate differences.
The fourth most influential factor in Hawaii home insurance rates is the choice of insurer, with prices ranging from 48% below to 74% above the state average. Some of the cheapest home insurance companies in Hawaii are UPC, Allstate, State Farm, and DB Insurance, with the latter offering rates that are about 44% less than average across all levels of coverage. However, it's important to note that rates will vary depending on factors such as coverage level, provider, the age of the home, other features of the home, insured credit, and claim history.
Overall, home insurance costs in Hawaii range from $330 to $1,486 per year, with an average of $601 per year for $350,000 of coverage. Hawaii has the cheapest home insurance in the country, with rates 72% to 81% lower than the national average.
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Best homeowners insurance companies
The cost of home insurance in Hawaii varies depending on factors such as location, coverage level, and provider. On average, Hawaiians pay $1,299 annually for home insurance, the 24th highest rate in the United States. However, the cost of home insurance in Hawaii is still considered affordable, at 81% below the national average. The average annual cost of home insurance in Hawaii is $610, compared to the national average of $2,110. The average monthly cost of home insurance in Hawaii is $41 for a dwelling coverage of $250,000.
When it comes to choosing the best homeowners insurance company in Hawaii, there are several options to consider. Here are some of the top-rated companies:
State Farm
State Farm is rated as Hawaii's best homeowners insurance company by U.S. News. They are one of the few insurers that offer earthquake insurance in Hawaii. While discount opportunities are limited, State Farm offers a range of coverage options and has agents located across the state.
Allstate
Allstate is the cheapest insurer in Hawaii, with an average annual premium of $771. They offer savings opportunities for new customers, automatic payments, new homebuyers, and those with active home security systems. Allstate also has agents located across the state and offers endorsements like yard and garden coverage, electronic data recovery coverage, and business property coverage.
USAA
USAA is ranked as one of the top homeowners insurance providers in Hawaii by U.S. News, especially for veterans, active military members, and their families. USAA offers features that other insurers may charge extra for, such as automatic coverage for personal belongings on a replacement cost basis.
Chubb
Chubb is another highly rated home insurance company in Hawaii. Their standard policies include extended replacement cost coverage, risk consulting, post-storm tree removal, optional cash settlements, electronic data restoration, and lock replacement. Chubb also offers a private alternative to flood insurance through the National Flood Insurance Program (NFIP), providing coverage up to $15 million.
Ocean Harbor
Ocean Harbor is a regional insurer that may have unique policy options suited to Hawaii. They are included in Bankrate's list of the best homeowners insurance companies in Hawaii for 2025.
AIG Property Casualty Co.
AIG Property Casualty Co. is also featured on Bankrate's list of the best homeowners insurance companies in Hawaii for 2025.
When choosing a homeowners insurance company in Hawaii, it is important to consider factors beyond just the price, such as financial strength, customer satisfaction, and the specific coverage options offered.
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Additional insurance coverage
Homeowners in Hawaii are advised to expand their insurance coverage to include natural disasters such as hurricanes, earthquakes, volcanic activity, and flooding. This is because Hawaii's unique geology and propensity for heavy downpours put residents at risk of these events. Flood insurance, in particular, is not typically covered by standard homeowners insurance policies, so homeowners in high-risk areas may need to purchase it separately. You can check your flood risk by looking up your address on the Federal Emergency Management Agency's flood maps.
State Farm is one of the few insurers that offer earthquake insurance in Hawaii, and their policies also include inflation coverage and identity theft protection. USAA is another top provider, offering $5,000 of identity theft protection and replacement cost coverage, with no depreciation factored into financial compensation for damaged property. Chubb's standard policies include extended replacement cost coverage, risk consulting, and post-storm tree removal. Liberty Mutual provides basic coverage, with additional options for blanket jewelry, service line failure, water backup, home systems breakdown, and appliance breakdown.
When deciding on additional coverage, consider the cost of replacing your house and belongings if they are totally destroyed. You may want to be fully reimbursed for losses, or you may opt for a lower premium and accept partial payment. You can also buy a higher deductible to decrease your premium. Replacement cost coverage pays for the cost of rebuilding your house and replacing personal belongings, but usually at an additional premium. Your policy may also reimburse you based on the "actual cash value" instead of replacement cost.
To secure the best rates, research your needs and average prices, then use an online estimate tool to find the best deal. You can also save money by combining home and auto insurance policies, improving your credit score, and making home improvements such as adding storm shutters or security systems.
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Frequently asked questions
The average cost of homeowner insurance in Hawaii is $610 per year. However, this varies depending on location. For instance, the average cost of home insurance in Honolulu is $585 per year, while homeowners in Hilo pay $610 per year, on average.
The cost of homeowner insurance in Hawaii is influenced by factors such as location, coverage level, provider, age of the home, construction materials, roof type, deductible, and credit score.
Homeowner insurance isn't required in Hawaii. However, if you're financing your home through a mortgage lender, they will likely require homeowner insurance as part of your loan terms. Even if you own your home outright, it's still recommended to consider homeowner insurance to protect your valuable asset.
Strong winds and heavy tropical rains are common in Hawaii and can cause weather damage. Additionally, due to Hawaii's unique geology and micro-environments, homeowners may need to purchase additional insurance for specific perils such as flooding, earthquakes, and hurricanes.
Some of the recommended homeowner insurance companies in Hawaii include State Farm, Allstate, Ocean Harbor, AIG Property Casualty Co., USAA, Chubb, DB Insurance, and Island Insurance. These companies offer competitive rates, reliable coverage, and, in some cases, specialized policies for the region.
