Do you need home insurance in Hawaii?
Homeowner's insurance is not required by law in Hawaii. Your lender, however, may require insurance on your home for the duration of your mortgage. Homeowner's insurance provides protection for your dwelling, personal property, and on-site buildings if damaged or destroyed by a covered peril.
Hawaii doesn't require home insurance by law, but if you finance your home, your lender may require you to have a homeowners insurance policy in place. Your policy's coverages are designed to safeguard your property and assets.
Average Cost of Homeowners Insurance in Hawaii
Hawaii home insurance premiums are low compared to average rates in other states. Average annual home insurance costs in Hawaii are $762, which is less than one-third of the national average.
Hawaii is a considered a “no-fault state”, which means your motor vehicle insurance company will pay the bills for your injuries and your passengers' injuries up to the personal injury protection benefits (“PIP”) limit.
Hurricane season in Hawaii begins on June 1 and runs through November. Hurricane insurance is a supplemental insurance to home insurance. It covers wind-related damage associated with hurricanes. Banks require homeowners to have hurricane insurance as part of their mortgage approval.
Driving without insurance in Hawaii is against the law, though, and the potential penalties include fines up to $1,500 and driver's license suspension.
Possibly Losing Your Home
If you're paying a monthly mortgage, you probably have no choice but to pay for homeowners insurance. If your mortgage lender requires it and discovers your home isn't insured, it could initiate foreclosure, resulting in the loss of your home.
Car insurance costs are cheaper in Hawaii than in other states. This is because non-driving rating factors that normally increase premiums, like your age and credit score, are disregarded.
Key takeaways
The average monthly cost of car insurance in Hawaii is $138 for full coverage and $35 for minimum insurance. Average rates for full coverage in Hawaii are 35 percent less than the national average.
As of 2024, the national average cost of homeowners insurance rose 23 percent more to $1,759 per year for a policy with $250,000 in dwelling coverage. On average, the most expensive states for homeowners insurance are Nebraska, Oklahoma, and Kansas, while the least expensive states are Hawaii, Vermont and Delaware.
What is the most common insurance in Hawaii?
In Hawaii, the most common type of health insurance plan is the Health Maintenance Organization (HMO). The other types of plans available in Hawaii include: Preferred Provider Organization (PPO)
Owning a home in Hawaii, it is important to protect your property from any damage that may occur as a result of an earthquake. Damage from an earthquake can result in thousands of dollars in damage & most homeowners policies don't cover earthquake damage.
Restaurants, shops, beaches, activities and several major attractions (including the Honolulu Zoo, Waikiki Aquarium, Kapiolani Park and the U.S. Army Museum) are within walking distance of most hotels in Waikiki, so if you're not going anywhere else, you won't need a car.
There's no such thing as volcano insurance, even in states that have active volcanoes.
Optional car insurance coverage in Hawaii
Though Hawaii law only requires that drivers carry liability and personal injury protection, there are a number of other helpful coverage types that can help to keep you protected.
Here are the minimum Hawaii auto insurance coverage requirements for the legal operation of an automobile in the state: Bodily injury liability coverage: $20,000 per person and $40,000 per accident. Basic personal injury protection: $10,000. Property damage liability coverage: $10,000.
Except for certain union agreements, the law requires employers to contribute at least half of the premium cost for single coverage. The employee must contribute the rest as long as their share is not more than 1.5% of their wages.
Hawaii being a no-fault state for car insurance means all Hawaii drivers are required to purchase personal injury protection (PIP) insurance to cover their own medical bills after an accident regardless of who was at fault.
Hawaii's Major Healthcare Programs
Hawaii's Medicaid program, known as Med-QUEST, provides free or low-cost health coverage to low-income individuals and families. Med-QUEST is administered by the Hawaii Department of Human Services and is funded jointly by the state and federal governments.
Twelve percent of U.S. homeowners in the U.S. don't purchase homeowners' insurance — known in real estate circles as “going bare.”
What happens if you Cannot get home insurance?
If you're unable to get a policy through the standard market, you may be able to obtain coverage through your state's FAIR (Fair Access to Insurance Requirements) plan. A FAIR plan is a state-run program designed to provide home insurance to homeowners that may be too risky for standard home insurance companies.
In the housing market, an uninsurable property is one that the FHA refuses to insure. Most often, this is due to the home being in unlivable condition and/or needing extensive repairs.
| Health insurance status | Percentage of total population |
|---|---|
| Medicaid | 17.8% |
| Medicare | 17.7% |
| Military | 5.7% |
| Uninsured | 4.3% |
Hawaii seems like paradise, but with price tags that elicit as much shock and awe as the islands' natural wonders. Why is Hawaii so expensive? In short, limited land supply, hefty shipping expenses, and high demand continuously drive up the cost of living.
One of the key factors contributing to the high cost of living in Hawaii is its heavy reliance on imports. As a remote island state, Hawaii has limited land for agriculture and manufacturing, which means that a significant portion of its food and consumer goods need to be shipped in from other places.
