Owning a home in Hawaii is a dream realized for many. You’ve got the trade winds, endless beaches, and the kind of sunsets people travel thousands of miles to see. But every dream has its practical side. In Hawaii, that’s insurance.

Homeowners insurance here is not just a formality for the bank—it’s your lifeline when hurricanes roar through, when the ground shakes, or when the sea creeps farther inland than expected. And 2025 is a year where the insurance market has seen real shifts: premiums are creeping upward, some carriers are stepping back, and the state has stepped in to keep coverage accessible.

This guide breaks it all down: costs, carriers, hurricane coverage, condo policies, and tips for making sure you’re not under- or over-insured.

Hawaii’s Housing Market Context

Why the Housing Market Matters

Insurance costs don’t exist in a vacuum. They scale with property values. And in Hawaii, those home values are in the stratosphere compared to much of the mainland.

Median Home Prices in 2025

  • Statewide median (Q2 2025): ~$1,012,500 for single-family homes.

  • O‘ahu median (July 2025): ~$1.07 million.

  • Condos: often $600K+, with luxury developments pushing much higher.

So when we talk about insurance premiums, we’re stacking them against properties routinely valued near or above a million dollars. That perspective matters.

Average Cost of Homeowners Insurance in Hawaii (2025)

How Hawaii Compares

Hawaii consistently ranks as the cheapest state in the nation for homeowners insurance. Here’s why: most homes are newer (thanks to building booms), many are built with hurricane mitigation in mind, and the island market has historically seen fewer catastrophic losses compared to places like Florida.

Numbers From Multiple Sources

  • NerdWallet / ValuePenguin / Insurance.com: ~$600–$613 per year

  • MoneyGeek: ~$454 for basic coverage, ~$911 for $500K coverage

  • Bankrate: ~$1,293–$1,298 annually for $300K dwelling coverage

That means most homeowners land in the $600–$1,300 annual range, depending on the dwelling amount insured and optional add-ons.

Insurance Costs Compared to Home Prices

When you compare premiums to Hawaii’s $1M median home price, the math is striking:

  • $1,200 per year is 0.12% of the home’s value.

  • On the mainland, coastal states like Florida or Louisiana can run $4,000–$6,000 annually, sometimes for homes worth less than half a Hawaii property.

So in terms of scale, homeowners insurance here feels like a steal. But that’s before you add hurricane, flood, or volcanic riders, which can dramatically change the math.

The Hawaii Insurance Market in 2025

Shrinking Carrier Options

The biggest story this year has been availability, not just cost.

  • Zephyr Insurance stopped writing new hurricane policies in mid-2025.

  • State Farm hasn’t issued new condo master policies since Hurricane Iniki in 1992 but still renews existing ones.

  • Fewer national players means homeowners have to lean on regional and local carriers.

The State Reacts

Governor Josh Green signed Act 296 (July 2025), reactivating the Hawai‘i Hurricane Relief Fund (HHRF). This state-backed pool steps in when private insurers retreat, making sure coverage is still available—even if it’s pricier than a private-market option.

Hurricane Coverage in Hawaii

Why It’s Separate

Unlike most mainland states, hurricane coverage in Hawaii often requires its own policy or rider. Standard homeowners insurance does not automatically cover hurricane damage.

Deductibles That Matter

Hurricane deductibles aren’t flat. They’re based on a percentage of your home’s insured value:

  • 2–20% is common.

  • On a $1M home, a 5% deductible = $50,000 out of pocket.

Premiums Rising Fast

According to local reports, hurricane premiums rose by 50% in 2025. That means a homeowner paying $2,000 last year might now pay $3,000 or more just for hurricane coverage.

Flood Insurance: A Separate Must-Have

Heavy rain, storm surge, and king tides are part of island life. Standard policies don’t cover flooding. Flood insurance comes either through FEMA’s NFIP or select private carriers.

Even if your lender doesn’t require it, flood coverage is often worth the cost—especially for oceanfront or low-lying properties.

Volcanic Coverage

If you own property on the Big Island, lava zones determine insurability.

  • Zone 1 or 2? Many insurers won’t touch it.

  • Zone 3 and beyond? You may still face higher premiums, or exclusions.

It’s not enough to just have “homeowners insurance” in these areas—you need to confirm whether volcanic damage is included or excluded.  Learn more about Lava Zones HERE.

Condo Insurance in Hawaii: Master Policy vs. HO-6

Master Policy

Covers the exterior, common areas, and structure.

HO-6 Policy

Covers the interior of your unit, your personal belongings, and liability.

Why Both Matter

Condo owners sometimes assume the HOA master policy covers everything. It doesn’t. If your kitchen floods or your drywall burns, that’s on your HO-6 policy.

In 2025, with condo units averaging $600K–$800K, the gap between master and HO-6 is too big to ignore.

Top Carriers in Hawaii (2025)

  • State Farm – dominant but limited in new condo coverage.

  • Allstate – active for single-family homes.

  • USAA – excellent option for military families.

  • First Insurance Company of Hawaii – locally rooted, strong reputation.

  • Dongbu Insurance & Allianz – provide coverage but with restrictions.

Smart Shopping Tips

  1. Shop Around Annually – premiums shift quickly in Hawaii.

  2. Bundle Policies – combine home and auto for discounts.

  3. Ask About Mitigation Credits – hurricane shutters, reinforced roofs, and impact-resistant glass often qualify.

  4. Know Your Deductibles – don’t be blindsided by a $50K hurricane deductible.

  5. Study Your Master Policy – condo owners should always review HOA coverage to avoid overlap or gaps.

Mistakes Homeowners Make

  • Assuming hurricane coverage is built in.

  • Thinking flood insurance isn’t necessary.

  • Ignoring lava zone exclusions.

  • Over insuring belongings but underinsuring the dwelling.

Filing a Claim in Hawaii

  1. Document Everything: Photos, videos, receipts.

  2. Report Fast: Delays complicate claims.

  3. Use Local Adjusters: They understand island-specific damage patterns better than mainland adjusters flown in post-storm.

The Future of Hawaii’s Insurance Market

Climate risks aren’t easing up. Rising seas, stronger storms, and higher rebuilding costs mean insurance will stay in flux. Expect premiums to keep climbing, deductibles to remain high, and state-level intervention (like the HHRF) to play a bigger role.

Conclusion

Insurance in Hawaii is an unusual mix: relatively cheap compared to $1M home prices, yet complex when you factor in hurricanes, flooding, and lava. By comparing carriers, knowing what’s excluded, and shopping with the right questions, you can protect your home without paying more than you need to.

Think of it this way: in Hawaii, homeowners insurance is like sunscreen. It might feel optional when skies are clear, but when the sun—or storm—hits hard, you’ll be glad you had the strongest protection on.

FAQs

1. How much does homeowners insurance cost in Hawaii in 2025?

Most homeowners pay $600–$1,300 annually, excluding hurricane and flood coverage.

2. Is hurricane coverage included in my policy?

Usually not. It’s a separate rider or policy with high deductibles.

3. Do I really need flood insurance?

If you live near the coast or in low-lying areas, yes—it’s one of the biggest uncovered risks.

4. What’s the difference between a condo master policy and HO-6?

The master covers the building exterior and common areas. HO-6 covers your unit’s interior, personal items, and liability.

5. How does the cost compare to home prices?

With a median home price around $1M, homeowners insurance averages just 0.1% of property value annually—cheap on paper, until you add hurricane and flood riders.

 

 

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