The Best Home Insurance in Hawaii for 2023

The average cost of homeowners insurance in Hawaii is $490 per year, or about $41 per month, according to a NerdWallet analysis. That’s the cheapest average rate of any state and far less than the national average of $1,820 per year.

However, homeowners insurance in Hawaii won’t pay for wind damage from hurricanes. That coverage is extra and may be required if you have a mortgage.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

The best homeowners insurance in Hawaii

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

More about the best home insurance companies in Hawaii

State Farm is a great choice for homeowners who like to work directly with a representative, as the company sells policies through a wide network of agents. Its attention to customer service has paid off; the company has fewer customer complaints to state regulators than expected for a company of its size.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Learn more with our State Farm homeowners insurance review.

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and it pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.

Learn more with our Chubb homeowners insurance review.

Cincinnati Insurance sells homeowners policies through independent agents, with various options for standard and high-value homes. You may be able to add coverage for things like identity theft, personal cyberattacks or certain types of water damage.

Cincinnati may offer you a discount for bundling home and auto insurance, having a newer home, installing a centrally monitored alarm system or going a certain amount of time without filing a claim.

Learn more with our Cincinnati Insurance homeowners insurance review.

USAA sells homeowners insurance to veterans, active-duty military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a replacement cost basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy new replacements for your stuff.

Learn more with our USAA homeowners insurance review.

How much does homeowners insurance cost in Hawaii?

The average annual cost of home insurance in Hawaii is $490. That’s 73% less than the national average of $1,820.

In most states, including Hawaii, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Hawaii, those with poor credit pay an average of $550 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 12% more than those with good credit.

» MORE: Does your credit score affect home insurance rates?

Average cost of homeowners insurance in Hawaii by city

Average Hawaii homeowners insurance rates tend to be fairly consistent across the state. For instance, the average cost of home insurance in Honolulu is $485 per year, while homeowners in Hilo pay $490 per year, on average.

» MORE: What’s the average cost of homeowners insurance?

The cheapest home insurance in Hawaii

Here are the insurers we found with average annual rates below the Hawaii average of $490.

» MORE: The cheapest homeowners insurance

What to know about Hawaii homeowners insurance

Hawaii’s unique geology brings special considerations for those shopping for the best homeowners insurance in the state. In addition to standard coverage concerns, like flooding, Hawaii residents need to decide whether they need additional coverage for hurricanes, earthquakes and volcanic activity.

Flooding

Flooding is a risk no matter where you live, but that’s especially true in areas with high rainfall. Flooding can cause significant damage to your home, and standard homeowners insurance policies typically don’t cover flood damage. As a result, homeowners in flood-prone areas may need to buy separate flood insurance to protect their property from water damage.

To find out whether you’re at risk, check out the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to buy flood insurance for extra peace of mind.

Remember that while you can buy flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

» MORE: Why you might want flood insurance — even if it’s not required

Hurricanes

Hawaii is susceptible to hurricanes, particularly during the central Pacific hurricane season, which runs from June to November. With high winds and heavy rainfall, these storms can cause significant damage to homes.

With such high risk in the Aloha State, homeowners with mortgages are typically required by their lenders to purchase supplemental hurricane insurance in addition to standard home insurance. Once a hurricane watch or warning is issued, hurricane insurance typically kicks in and remains in effect for 72 hours.

Coverage under hurricane insurance varies, so it’s important to read your policy carefully. In general, a hurricane policy will cover damage from wind but not flooding. To make sure your home has the most comprehensive coverage for hurricanes, you’ll need a separate flood insurance policy.

Because hurricane insurance is separate from your homeowners policy, it will have its own deductible, usually a percentage of your dwelling coverage. For example, if your home has $300,000 worth of dwelling coverage and a 5% hurricane deductible, you’ll be responsible for the first $15,000 of damage before your insurance will pay for anything.

Volcanic activity

Hawaii is home to active volcanoes, like Kilauea on the Big Island. Volcanic eruptions can lead to lava flows, ashfall and volcanic gases, which can damage your home. Coverage does vary, so it’s important to review your homeowners insurance policy to understand what it covers. Some lava activity may be covered as fire damage.

When reviewing your policy, pay particular attention to your dwelling coverage limit. This is the amount the insurance company will pay to rebuild your house. Volcanic activity could destroy your whole home, so talk with your insurer to ensure you have enough coverage to rebuild if necessary.

Earthquakes

In addition to volcanic activity, Hawaii is susceptible to earthquakes, with thousands of varying magnitude recorded each year. Powerful earthquakes can potentially cause significant structural damage to homes.

Standard homeowners insurance policies do not typically cover structural damage due to an earthquake. If you live in an area with higher risk, consider purchasing additional earthquake insurance.

When buying earthquake insurance, pay attention to the deductibles so you know the potential out-of-pocket costs. As with hurricane insurance, earthquake insurance often has a separate deductible, which can be around 5% to 25% of the coverage on your policy. For example, if you have a 20% deductible on $200,000 of coverage, you would need to pay a $40,000 deductible for earthquake damage before your insurance covers anything.

» MORE: Home insurance calculator: Estimate your rate

Hawaii insurance department

The Hawaii Department of Commerce and Consumer Affairs oversees the insurance industry for the state. Its website provides useful insurance information for consumers, including hurricane preparedness resources and information on lava flow insurance.

This department can help answer your questions about insurance in Hawaii by email at [email protected] or by phone at 808-586-2790. If you have an issue with your insurer, file a complaint with the department using its Consumer Complaint form.

Looking for more insurance? Check out the cheapest car insurance in Hawaii.

Amanda Shapland contributed to this story.