Living near the water in Hawaiʻi can be beautiful and therapeutic, but also poses certain risks to homeowners, such as flooding, harsh winds, earthquakes, hurricanes, and even volcanic lava flows.
Homeowners insurance is designed to protect against these and other risks by ensuring homeowners are fairly compensated in the event of a covered incident.
Residents living on any Hawaiʻi island must consider what type of coverage they need based on where they live, as well as how much coverage is needed to be protected from environmental risks and other threats.
The following tips will help guide you when buying homeowners insurance on any of the beautiful islands of Hawaiʻi.
Why Do I Need Earthquake Insurance in Hawaiʻi ?
On July 1, 2023, the resident population for the State of Hawaiʻi was 1,435,138. Located approximately 2,000 miles from the U.S. mainland, Hawaiʻi attracts people of all backgrounds looking to live a simpler life in one of the country’s most beautiful, diverse, and laid-back states.
While living in Hawaiʻi offers many advantages and opportunities, there are also some risks to consider. Homes situated on Hawaiʻiʻs islands can receive damage due to flooding, wind exposure, and natural disasters like hurricanes. Even homes that are not located directly on the coastline can suffer storm damage that results in the need for costly repairs.
Tips for Buying Homeowners Insurance in Hawaiʻi
Purchasing homeowners insurance is a vital step in the home-buying process to ensure that the home is immediately protected against fire, theft, and other mishaps. When buying homeowners insurance on a Hawaiʻi an island, consider these key tips:
1. Determine What Is and What Is Not Covered
Many new home buyers are often under the misconception that homeowners insurance covers all accidents and disasters. In reality, each policy is unique and contains a list of what is and what is not covered.
There is no such thing as a one-size-fits-all policy. Residents in Hawaiʻi must consider what risks they face and choose a policy accordingly. A standard homeowners insurance policy covers the following:
The home- Other structures on the property
- Personal liability
- Personal property
- Living expenses
2. Consider Flood Insurance as Add-On Coverage
Living on an island significantly increases a homeowner’s risk of flooding. Unfortunately, flood damage is not covered by most standard homeowners insurance policies.
However, flood insurance is generally available as an optional add-on coverage for those at high risk of flooding. Flood insurance typically covers the physical structure of the home, electrical and plumbing systems, HVAC systems, detached garages, and personal contents including furniture, clothing, electronics, and appliances.
3. Know How Much Coverage Is Needed
One of the most difficult decisions a homeowner will need to make when buying insurance is deciding how much coverage is sufficient. There are several costs to break down to obtain an accurate estimate.
First, consider how much money it would cost to rebuild the home if it was completely destroyed. The insurance company will also factor in how much it would cost to replace personal possessions or make repairs to the property. Also, consider liability costs in the event that someone is injured on the property.
4. Protect Against Other Natural Disasters
Flooding is not the only risk that homeowners in Hawaiʻi must protect against. The islands are also vulnerable to other risks, such as earthquakes and hurricanes.
To protect against these risks, a homeowner may consider a hurricane insurance plan with a separate windstorm policy, or an earthquake insurance policy that provides coverage for both the home and belongings if they are damaged or destroyed in an earthquake.
It is important to carefully read the terms of the policy as insurance for natural disasters can have complex exclusions, limits, and high deductibles.
5. Review the Deductible and Premiums
Two of the most important components to review on a homeowners insurance policy are the deductible and premiums. Like other insurance policies, homeowners coverage requires the policyholder to pay a deductible before the insurance company will pay the claim.
Choosing a higher deductible typically means that the policyholder will pay more out-of-pocket if a covered event occurs but may allow for lower premiums. When it comes to premiums, homeowners have several options. They can pay the premium upfront once a year, in monthly payments, or as part of their mortgage payment.
Partner With Local Homeowners Insurance Pros Today
Buying a home is one of the biggest investments a person can make in their lifetime. One of the best ways to protect this investment from unexpected perils and liabilities is with homeowners insurance. Atlas Insurance has been serving home and business owners in Hawaiʻi since 1929.
Atlas Insurance offers a wide range of personal insurance products for Hawaiʻi residents, such as earthquake, flood, and hurricane coverage. To learn more about our insurance offerings or to get a quote for homeowners insurance, request a quote online or contact Atlas Insurance at (808) 400-6634.