Insurance companies base their home insurance rates on the value of your property and how likely it is that something bad will happen to it. The higher the probability that a damaging event will affect your home or property, the more expensive your homeowners insurance policy will be.
These potential damaging events are called "risks” or “exposures.” Let’s take a look at how risky Hawaii is compared to the rest of the United States:
The burglary rate in Hawaii is higher than the national average. Insurance companies will look at crime rates in your particular ZIP code when they are calculating how high your premiums will be.
- Average number of burglaries per 1,000 homes in the US: 4.69
- Average number of burglaries per 1,000 homes in HI: 3.96
Several insurance companies offer policy discounts to homeowners who have burglar alarms, deadbolt locks, and other security features installed in their homes. Talk to a local independent agent to learn whether you qualify for this or any other discount.
Severe weather events, including hurricanes and severe storms, can wreak havoc on residential properties in this state. Be sure that your home insurance provides all the coverage you need before disaster strikes.
- Number of federally declared disasters since 1953: 58
- Most common causes of disasters in the state: Wildfires, floods, and severe storms
- Average number of tornados per year in the state: 1.0
- Amount paid in home insurance claims in 2019: $98,432,000
Hawaii property owners have some risks that may require specialized insurance policies or riders on their home insurance coverage. These include volcanic eruptions, lava flows, earthquakes, mudslides, tsunamis, and floods. A local independent insurance agent can help you be sure you have all the coverage you need.
The size of your house can affect your homeowners insurance rates, since larger homes tend to have more personal property inside them. The estimated cost to rebuild your house will also play a large role in how much your home insurance costs.
- Average home value in the US: $188,900
- Average home value in HI: $617,400
Although the average home value in Hawaii is much higher than the national average, these houses tend to cost a lot more per square foot. This means that these houses tend to have lower contents coverage needs than their value might otherwise indicate, and it helps to keep insurance costs affordable for many residents.