Luxury properties in Hawai‘i offer gorgeous views of serene island life, but they also expose their owners to unexpected risks. Many high-end properties, especially near the coast, feature valuable architectural and landscaping assets that are vulnerable to hurricane damage and require private client insurance to protect.
Everything from designer windows to valuable trees can be damaged or destroyed, and it doesn’t have to be hurricane season to pay the price. Luxury property owners can acquire protection that can be scaled and adapted to their properties all year round.
The following provides the top private client insurance strategies built by local advisors, specifically for owners of high-value properties in Hawai‘i, as well as other actionable steps luxury property owners can take to prepare for hurricane season.
Understanding the Hurricane Risk for Luxury Properties in Hawai‘i
Hawai‘i’s geographic location is infamous for its high storm risks, especially during the June-November season. Pacific hurricanes, undeterred by any large landmasses, can make landfall and cause catastrophic damage to high-value estates on the coast. However, even non-coastal properties can be easily reached by these large storms, catching many inland owners off-guard and unprotected.
Physical Property Protection Strategies
The most obvious points of vulnerability for any high-value estate include any beachfront exposure to winds and storm surges, large windows, detached pavilions, guest homes, outdoor lanais, and any high-end custom constructions. Here are some steps that owners can take to physically prepare for potential storms:
- Reinforce Structures and Openings: High-value properties can be upgraded with hurricane-rated windows and doors to reduce the damage from air pressure and debris. Upgraded shutters can protect windows and skylights.
- Secure Outdoor Items: Patio furniture, sculptures, outdoor pool and kitchen accessories, and freestanding landscape elements should be tied down or brought inside for protection.
- Power and Utility Backups: House generators can help maintain power for smart systems and refrigerators during an outage while surge protectors can be installed to protect home theaters, automated lighting systems, and other sensitive electronics.
- Document and Inventory Assets: Indoor and outdoor assets should be clearly documented in high-quality video at their pre-damaged condition and appraised by a credible third party.
Insurance Strategies for Full Coverage
Physical property protection can help mitigate some damages; however, the reality is that no amount of physical preparation can prepare for every possibility. Coverage gaps will remain, some quite costly, allowing for unchecked financial fallout. The solution? Comprehensive insurance personalized to the property’s distinct needs.
Here’s how high-value property owners in Hawai‘i can make sure their coverage is right:
- Review policies for hurricane-specific exclusions
- Secure appropriate flood insurance
- Evaluate replacement cost vs. market value
- Add coverage for high-value assets
- Consider business interruption and loss of use coverage
- Work with a high-net-worth insurance specialist
The most important reminder is that the cost of replacing damaged or destroyed assets and structures will likely be far more than the market value of those items at the time of the damage. High-value assets should be assessed and insured against named perils to secure any necessary policy riders ahead of the storm season.
Frequently Asked Questions
Is windstorm insurance the same as hurricane insurance?
Not always. Some insurers will group the coverages together. More commonly, windstorm damage and hurricane damage are two separately named perils, each with their own policies and liability limits.
Can I purchase or change insurance once a storm is named?
No. Most insurers lock or freeze policy changes once a tropical storm or hurricane has been named, which adds it to the island’s watch area.
What’s the best way to document luxury assets for a hurricane claim?
The best documentation depends on the type of asset. For physical assets, video walkthroughs combined with third-party appraisals can adequately document both the objects and their current condition. Additionally, a cloud backup of intangible on-property assets like company data may be needed.
How do I know if I’m underinsured?
An experienced local broker can conduct a replacement cost analysis for your property to make sure your coverage limits are based on the cost of replacing your assets, not their market value.
Does my insurance cover landscaping or a private beach?
Not usually. Most standard policies exclude private landscaping, including land and vegetation, unless the policy holder buys a rider and names these assets in their coverage.
Partner With Local Insurance Experts to Protect Your Property All Year Round
Luxury property protection in Hawai‘i requires thinking ahead. Hurricane season is a known peril, but coastal and inland properties alike can be damaged by windstorms, surges, and heavy rains at any time of year. Longstanding, local brokers have the knowledge and experience to help high-net-worth individuals establish the right private client insurance plan for their needs. Hurricane protection should be a personalized plan of action for the specific assets and exact location of the property.
At Atlas Insurance, we’ve been helping local property owners and businesses in Hawai‘i protect their valuable assets for almost 100 years. Contact our team today to learn how our custom private client insurance can protect your property from the elements, including hurricane-related damage, all year round.