In recent months, many Hawaii homeowners—especially those in older homes or near the coastline—have been shocked to receive non-renewal notices or see sharp increases in their hurricane insurance premiums. What’s going on? And what can you actually do about it?
Let’s break it down.
🌋 What’s Driving the Surge in Insurance Costs?
1. Climate Risk = Higher Premiums
Insurers operate based on risk. And right now, climate-related risk is off the charts. Wildfires, hurricanes, and rising sea levels have created a new insurance landscape—especially in states like California, Florida, and now Hawaii.
2. Reinsurance Costs Are Skyrocketing
Insurance companies protect themselves with reinsurance (basically insurance for insurers). Global reinsurers have hiked rates across the board, citing multi-billion-dollar losses. These costs are passed directly to homeowners.
3. Selective Coverage by Insurers
Insurers are becoming pickier about what homes they’ll cover:
- Old roofs? Higher risk.
- Near the ocean? Higher risk.
- Single- or double-wall construction? Higher risk.
Some carriers are pulling out entirely from certain areas, leaving homeowners with fewer options and higher premiums.
💸 The Real Cost to Homeowners
If your home was insured for hurricane damage just a few years ago at $800/year, you might now be looking at $2,000 or more. In some cases, homeowners can’t even get coverage unless they pay out-of-pocket for new roofing, elevated foundations, or third-party inspections.
For condo associations, it’s even worse—some have seen premium hikes of 300% or more, triggering higher maintenance fees or special assessments.
✅ What You Can Do About It
Let’s move beyond the frustration and focus on actionable steps:
1. Shop Around with an Independent Broker
Don’t just take your current insurer’s rate at face value. Independent brokers can access multiple carriers and may find better deals or specialty insurers.
2. Update Your Home’s Risk Profile
Some insurers offer discounts for upgrades, including:
- New hurricane-rated roof
- Impact-resistant windows
- Structural retrofitting
- Fire-resistant materials (especially for wildfire-prone areas)
3. Document Everything
Make sure your home improvements and upgrades are well-documented and photographed. Insurers are more likely to consider discounts or favorable underwriting if you can prove risk has been reduced.
4. Stay Informed About the Hawaii Hurricane Relief Fund (HHRF)
While primarily geared toward condo associations for now, there’s a growing movement to reactivate and expand the HHRF. Keep an eye on legislative efforts and contact your representatives to push for expanded support.
5. Keep an Eye on Your Condo’s Master Policy
If you live in a condo, make sure your board is actively reviewing the building’s hurricane policy and working with knowledgeable brokers. Gaps in the master policy could affect your personal unit coverage as well.
🧭 Final Thought
The hurricane insurance landscape in Hawaii is changing rapidly—and not for the better. But staying informed, being proactive, and demanding policy changes at the state level are all within your power.
If you’re buying or selling real estate on Oahu, or just want to better understand your home’s current risk exposure, we’re happy to help.