6 Best Homeowners Insurance Companies in Hawaii of 2023

Owning a home has been part of the American dream from the time our country was founded, and it’s part of what many Americans think of as success.

Homeowners in Hawaii must protect themselves by purchasing homeowners insurance to provide them with coverage if their home is damaged or destroyed.

Purchasing insurance is particularly important in Hawaii, where damage from earthquakes, tides, and storms is common.

Whether you live in a major city like Honolulu or a small town like Kailua or Lahaina, buying homeowners insurance will provide you with the peace of mind you deserve.

At PropertyNest, we want every homeowner in Hawaii state to have a stress-free experience shopping for and buying homeowners insurance, so we have researched for you to pick the best homeowners insurance companies in the state.

You should know that hurricane insurance is supplemental to home insurance in Hawaii, which explains why the state annual average for homeowners insurance is one of the lowest in the country at $985, well below the national average.

It’s important to note that flood damage is not covered by hurricane insurance, so you may also want to purchase flood insurance.

Allstate: Best for Filing Claims

Allstate Insurance is a large insurance company with a proven track record of protecting homeowners that goes back decades.

We chose Allstate for our list because their user-friendly website makes filing and tracking claims extremely easy.

We also like that Allstate will work with FEMA to help Hawaii homeowners file and track flood claims.

Allstate’s average annual homeowners insurance premium in Hawaii is just $360, putting it below the national average; keep in mind this doesn’t include hurricane insurance.

Read a full Allstate homeowners insurance review.

State Farm: Best for Automatic Inflation Adjustments

State Farm has been selling insurance since 1922 and is one of the most highly respected insurance companies in the United States.

We selected State Farm for this list because they offer automatic inflation adjustments, something that’s particularly important in Hawaii, where consumer prices tend to be higher than average.

We also like that the company has excellent customer service reviews and that there are flexible policy limits for homeowners with high-value properties.

The average annual homeowners insurance premium in Hawaii for State Farm is $435, which is below the state average and does not include hurricane insurance.

Read a full State Farm homeowners insurance review.

USAA: Best for Active Military Members and Veterans

Hawaii is home to many active duty military members and veterans who live and serve on the island’s military bases.

We selected USAA for our list because they offer affordable coverage to current and former military members and their families, including covering the replacement cost of uniforms.

We also like that the company has top-notch customer service and is available in all 50 states plus Washington D.C.

USAA has costs that are higher than average in Hawaii, coming in at $1,575, significantly higher than the state average, but some military members may prefer to work with a company that offers special protection for them.

Island Insurance: Best for Local Service

Island Insurance is based in Honolulu and is the largest Hawaii-based property and casualty insurer and one of the top 50 property and casualty companies in the US.

For more than 80 years, Island Insurance has been providing local service to Hawaii homeowners, and that’s why we chose them for our list.

We also like the company’s commitment to providing affordable insurance to underserved communities, which is embodied by their “Always Here to Help” motto.

The average cost of a policy with Island Insurance is $920 per year, slightly below Hawaii's state average.

Chubb: Best for High-Value Homes

Chubb is the world's largest publicly-traded property & casualty insurer and has a solid reputation for providing affordable insurance.

We put them on our list because they have the best coverage for high-value homes, providing protection against natural disasters.

Chubb’s Masterpiece Homeowners policy provides protection for homes that are worth more than a million dollars.

Chubb’s annual cost of homeowners insurance in Hawaii is in line with the overall state average, but buying a policy for a high-value home may put your costs above average.

RLI: Best for Hurricane Insurance

RLI is a Hawaii-based company that offers homeowners insurance only to residents of Aloha State.

We selected them for our list because they are the only company that offers hurricane coverage as a standard option.

We also like that they provide coverage for homes in the most remote areas of the state as well as for homes under construction.

The average cost of a basic RLI policy in Hawaii is just $410, putting it well below the state average and making it one of the most affordable options for most residents.

What Things Impact the Cost of Homeowners Insurance?

There are a number of things that may affect how much you pay for homeowners insurance coverage, and it’s difficult for us to tell you how much your coverage will cost because we don’t have the details of your home.

That said, here are some of the factors that will impact your cost and may help you estimate what you’ll end up paying.

Deductible

The deductible you choose for your insurance policy will significantly impact your premium.

If you opt for a low deductible, you should expect to pay more than you would for a high deductible policy, so you should keep that in mind.

Policy Limits

We’ll get into more detail about how to decide on a policy limit in the next section, but as a rule, you’ll need a limit high enough to cover rebuilding your home from the ground up.

If you live in a high-value home or you choose to buy extra liability protection, your premium is likely to be higher than the state average for Hawaii.

Endorsements and Riders

Standard homeowners insurance policies protect your home and other structures on your property, as well as providing limited protection for your personal liability and guest medical expenses.

Should you decide to add to your coverage with riders and endorsements, each addition will add to the total cost of homeowners insurance.

Location

The final factor that can impact homeowners insurance costs is your home's location.

Houses that are close to water, far from a local firehouse, or in an area where crime or vandalism is high will cost more to insure.

How Much Homeowners Insurance Do You Need?

New homeowners often ask us for advice on how much homeowners insurance coverage to buy, and that’s a good question.

The easiest way to calculate your coverage is to use the estimated cost to rebuild your home as a guide.

• Dwelling coverage should be high enough to pay for the complete rebuilding of your home from the ground up if it should be destroyed.
• Other structures coverage is what pays for repair or reconstruction of any other buildings or structures on your property, including detached garages, sheds, fences, or barns, and should equal about 10% of your dwelling coverage.
• Personal property coverage reimburses you for your personal belongings if they are stolen or destroyed, and should total between 50% and 70% of your dwelling coverage.
• Liability coverage provides personal protection if a guest on your property is injured or their belongings are destroyed, and you should have coverage between $100,000 and $500,000.
• Guest medical payments coverage will pay for a portion of medical expenses incurred by a guest who is injured on your property, and in most cases, coverage will be between $1,000 and $5,000 per guest.
• Additional living expenses coverage will pay for you and your family to live in a hotel or make alternative living arrangements if your home is destroyed or damaged to the point where it becomes uninhabitable.

Adding these numbers together reveals that you’ll need approximately twice the cost to rebuild your home as a total limit, not including guest medical coverage and personal liability.

These numbers do not include any additional coverage you purchase, such as scheduled high-value items, hurricane coverage, or earthquake coverage.

What Is and Isn’t Covered by Homeowners Insurance

Your homeowners insurance policy protects you against many of the risks of being a homeowner but it doesn’t cover everything.

Here are the things covered by a standard policy.

1. Your house and other structures on your property include barns, fences, sheds, and detached garages.
2. Personal belongings for you and all other occupants of your home, whether or not the belongings are in your home when they are destroyed or stolen.
3. Any damage caused by covered events.
4. Your personal liability related to damage to guests’ personal property or guests’ injuries.
5. Guest medical expenses.

Each coverage will be paid in accordance with your policy’s limits and deductible.

Here are the things that are not covered by a standard homeowners insurance policy.

• Pest infestation and damage
• Flood damage
• Earthquake damage
• Hurricane wind damage
• Power failure
• Neglect
• Government action
• Nuclear hazards

The first five things on the above list can be remedied by purchasing an additional policy, such as buying supplemental hurricane coverage or flood insurance from the National Flood Insurance Program or by adding a rider to your policy to cover earthquake damage.

There is no way to remedy the last three items on the list because neglect is within your control and the likelihood of government action or a nuclear hazard damaging your home is extremely small.

Synopsis

At PropertyNest, it’s our goal to provide every homeowner in Hawaii with the facts they need to choose the right homeowners insurance policy to protect themselves and their property.

As you begin your search for homeowners insurance, remember the factors that can impact how much you pay, including how much it will cost to rebuild your home, the value of your belongings, and where your home is located.

We suggest obtaining at least three quotes from three different carriers to compare premiums and coverage.

Make sure to ask about any available discounts and take advantage of all that apply to you to minimize the cost of homeowners insurance.

How We Selected the Best Homeowners Insurance Companies for Hawaii

Shopping for insurance has the potential to be both stressful and time-consuming because there are many options to consider and it may not be easy to compare companies, costs, and coverage.

We used these five criteria to choose the best homeowners insurance options for Hawaii and make sure you have the information you need to find a policy that works for you.

Average Cost

The amount you pay for a homeowners insurance policy will be determined by the value of your home, its location, and other factors that impact the insurance company’s risk.

For our list, we focused on companies that offer value when compared to the Hawaii state average and the US national average to help you minimize your costs.

Coverage

When you buy homeowners insurance, you need to be confident that you have enough coverage to protect yourself and your family in the event that your home or belongings are damaged or destroyed.

We prioritized insurance companies that offer a broad range of riders and customization options, as well as flexibility in policy limits, to help you get the protection you need.

Homeowners Discounts

While the size, value, and location of your home determine the cost of homeowners insurance, you can reduce your monthly premium if you qualify for homeowners insurance discounts.

We selected companies that provide at least three discounts on homeowners insurance with special attention to those who offer discounts that apply to most homeowners, or whose costs were low enough to justify their inclusion without discounts..

Customer Support

Low premiums can’t make up for lack of customer support, particularly if you need to file a homeowners insurance claim.

To make our list, companies needed to have a history of solid customer support and good reviews and ratings, and we gave special attention to those who provide online, mobile, or around-the-clock support.

Technology

Technology can make the process of getting homeowners insurance quotes and coverage easy, and the same is true of filing claims.

We selected companies for our list that have user-friendly websites, online support and resources for policyholders, and well-reviewed mobile apps.