Home Insurance in Honolulu, Hawaii: A Comprehensive Guide
As the capital and most populated city in Hawaii, Honolulu is home to beautiful beaches, a bustling urban center, and tropical landscapes. However, its coastal location presents challenges such as hurricanes, tsunamis, and volcanic risks, all of which drive home insurance costs higher.
National vs. Honolulu Home Insurance Costs
The national average cost for home insurance is $1,400 per year, while Honolulu homeowners pay an average of $1,800 per year. Honolulu’s location on the island of Oahu makes it more susceptible to tropical storms, and the higher cost of living in Hawaii generally results in higher premiums.
Home Insurance Rates by Home Age in Honolulu
Older homes in Honolulu tend to have higher insurance premiums due to potential structural vulnerabilities, while newer homes benefit from modern building codes. Here’s a look at how home age impacts premiums:
| Home Age | Average Annual Premium |
|---|---|
| 0-10 years | $1,700 |
| 10-20 years | $1,750 |
| 20-30 years | $1,800 |
| 30+ years | $1,900 |
Impact of Home Age on Insurance Rates in Honolulu
- Newer homes typically benefit from lower premiums due to more resilient construction standards designed to withstand storms and other natural events.
- Older homes may have outdated structures or building materials, which can lead to higher premiums due to increased risks of damage.
Home Insurance Rates by Credit Tier in Honolulu
Credit scores can significantly impact insurance premiums in Honolulu. Below is a breakdown of how home insurance costs vary by credit tier:
- Excellent Credit (750+): $1,700/year
- Good Credit (700-749): $1,800/year
- Fair Credit (650-699): $1,950/year
- Poor Credit (Below 650): $2,200/year
Cheapest Home Insurance Providers in Honolulu
Here are the top five affordable home insurance providers in Honolulu, along with their average annual premiums:
- State Farm: $1,750/year
- Allstate: $1,780/year
- Liberty Mutual: $1,800/year
- Progressive: $1,820/year
- USAA: $1,720/year (for military families)
Home Insurance Rates by Deductible in Honolulu
The deductible you choose plays a significant role in your premium costs. Here’s how different deductible amounts impact premiums in Honolulu:
- $500 Deductible: $1,950/year
- $1,000 Deductible: $1,800/year
- $2,000 Deductible: $1,650/year
- $5,000 Deductible: $1,500/year
Types of Homeowners Insurance in Honolulu
There are several types of homeowners insurance policies to consider, depending on your home’s location and value:
- HO-3 (Special Form): The most common type of policy, covering the home and personal belongings against most risks, except those specifically excluded.
- HO-5 (Comprehensive Form): Provides broader coverage for high-value homes and belongings.
- HO-6 (Condo Insurance): Designed for condo owners, covering personal property and parts of the condo structure.
- HO-8 (Older Home Insurance): Tailored for historic or older homes that may require different coverage terms.
Additional Coverage Options in Honolulu
Because of the unique risks associated with living in Honolulu, additional coverage options may be beneficial:
- Hurricane Insurance: Hawaii is prone to hurricanes, and many standard home insurance policies do not cover windstorm damage, making hurricane insurance essential.
- Flood Insurance: Flooding can occur due to heavy rains, especially in low-lying areas. Flood insurance is necessary as standard policies do not cover flood damage.
- Volcanic Eruption Coverage: While less frequent on Oahu, coverage for volcanic damage can be necessary depending on your property’s location.
Frequently Asked Questions (FAQ) for Honolulu Homeowners
A: Installing hurricane shutters, maintaining the roof, and bundling home and auto insurance policies can help lower your premiums.
Q: Does homeowners insurance cover hurricane damage in Honolulu?
A: Standard policies do not typically cover hurricane wind damage. You will need a separate hurricane policy.
Q: How can I reduce my home insurance premiums in Honolulu?
A: Installing hurricane shutters, maintaining the roof, and bundling home and auto insurance policies can help lower your premiums.
Autumn Cafiero Giusti is a licensed life and health insurance broker and award-winning journalist with more than 20 years of experience. She writes extensively about flood, Medicare, home, and life insurance for publications like U.S. News and CBS News.
