Not all Hawaii homeowners are aware that their standard home insurance doesn’t cover hurricane damage. Although hurricane insurance is optional for people who own their homes outright, in Hawaii, hurricane insurance is a requirement if the homeowner has a mortgage.
Whether you choose to have hurricane coverage or are required to, it will not cover damage caused by flooding. Additional insurance should be considered to protect against flood damage, an ever-present risk when your home is in a region commonly hit by storms.
If you’re a Hawaii homeowner, it might be time to review your insurance to make sure you have the coverage you need. If your home is ever damaged, or—in a worst-case scenario, completely destroyed—it’s vital that you and your family aren’t at risk of suffering financial hardship on top of the emotional toll of losing your cherished belongings or being displaced from your home.
Hurricane Season in Hawaii
Hawaii’s hurricane season starts at the beginning of June and continues through to the end of November. The risk is highest in August and September.
Major storms that have hit Hawaii in modern history include the Kohala Cyclone (1871), Hurricane Nina (1957), Hurricane Dot (1959), Hurricane Iwa (1982), and Hurricane Iniki (1992).
Hurricane Iniki was Hawaii’s most destructive and costly hurricane to date, causing approximately $1.6 billion in damage , according to CNBC. Six people were killed, and more than 100 were injured. The Category 4 storm destroyed nearly 1,500 homes and left thousands of people without electricity or safe drinking water for days. The Washington Post reported an overnight spike in unemployment on hard-hit Kauai —Hawaii’s fourth-largest island—from only 5 percent to over 50 percent.
Although hurricanes rarely make landfall in Hawaii, the effects can still be disastrous. In August of 2018, even though Hurricane Lane did not make landfall, its heavy rains devastated the Big Island , causing catastrophic flooding.
How Complete is Your Coverage?
Many people have not familiarized themselves with the details of their policies and are unaware of what is and is not covered. When shopping for additional Hawaii hurricane insurance, or reviewing your current coverage, some essential things to look for include:
●Does the home insurance policy cover hurricane damage? If so, is there a special “hurricane deductible?”
●Do you have a separate policy for flood damage?
●Does your coverage include sewer back-up or debris removal?
●Are you covered for living expenses if you must be away from your home for some time?
●Do you need extra coverage for high-value items such as jewelry or antiques?
●Are you aware of the difference between actual cash value (ACV) and replacement cost for your belongings?
●Are you comfortable with your deductibles? Could you really afford them?
Make sure your Hawaii hurricane insurance is sufficient to cover the full cost of rebuilding. From the same CNBC research, around one-quarter of home insurance policies do not provide enough coverage for even 80 percent of the home's replacement cost.