Hurricane landfalls on the Hawaiian islands are uncommon, but when one hits, it can cause catastrophic losses. Hurricane Iniki, for example, caused as much as $3 billion in damage when it struck as a Category 4 storm in 1992.1
You can’t buy a stand-alone hurricane policy, but you can add optional flood and windstorm coverage to your homeowners insurance policy for full protection against storm damage.
Here’s what you need to know about hurricane insurance, including what it covers, how much it costs, and how hurricane deductibles work.
Hurricane insurance, including wind and flood coverage, is supplemental coverage added to home insurance policies to cover damage resulting from a hurricane.
The standard homeowners insurance policy is an “open perils” policy that covers damage from any kind of emergency other than perils the policy specifically excludes. Hurricane damage is one such exclusion.4 Supplemental hurricane insurance can fill this gap in coverage.
Hurricane insurance requires a triggering event to take effect. In Hawaii, the triggering event is typically an announcement of a hurricane watch or warning from the National Weather Service. The National Weather Service issues a watch when sustained winds of 74 mph or higher are possible and a warning when winds of 74 mph or higher are expected or occurring.
Some insurers call hurricane coverage “named storm” insurance because storms that meet these criteria often receive names.
State laws don’t require Hawaii homeowners to carry hurricane coverage, but mortgage lenders may make it a condition for financing.
Hurricane insurance consists of a couple of different policies: flood and windstorm insurance.
Flood insurance can help cover the damage from flooding you may face in the event of a hurricane or tropical storm. If you secure flood insurance through the National Flood Insurance Program, it typically covers damage to the following:5
The building structure, including electrical and plumbing systems, furnaces, and water heaters
Flooring
Cabinets, paneling, and built-in bookcases
Detached garages
Fuel tanks, well-water tanks and pumps, and solar energy equipment
Your personal belongings, like clothes, furniture, and electronics
Appliances
Valuable items like artwork and furs (up to $2,500)
Windstorm insurance also covers damage caused by a hurricane — specifically, damage resulting from wind that exceeds 74 mph. Similar to flood insurance, windstorm insurance includes protection for your home, external structure, personal property, and debris removal.
For example, if 80-mph winds blow off part of your roof, windstorm insurance would cover the damage.6 And if rain from the storm enters your home through the hole in your roof and causes water damage inside your home, your insurance would cover the water damage because it occurred as a direct result of the wind damage to your roof. Windstorm coverage can also cover hurricane-wind damage to structures other than your home.
Standard home insurance policies exclude coverage for hurricanes, including damages from wind and flooding, which is why you’ll need additional wind and flood insurance coverages in Hawaii.
Windstorm insurance is strictly for wind-related damage, so it won’t cover damage originating from other perils, such as flooding or storm surges. And flood insurance won’t cover wind damage. In addition to your standard home insurance policy, you’ll need windstorm and flood insurance for the most protection.
Hawaii is one of 19 U.S. states that have hurricane deductibles, according to the Insurance Information Institute. The hurricane deductible applies specifically to hurricane-related wind damage, and it usually goes into effect automatically when the Central Pacific Hurricane Center of the National Weather Service issues a hurricane watch or hurricane warning. Your hurricane deductible and coverage usually apply to damage that occurs within 72 hours of the announcement of the named storm.
The hurricane deductible is usually a percentage ranging between 1% and 10% of your dwelling coverage limit.7 If you’ve insured your home for $300,000 and have a 3% hurricane deductible, your deductible would be $9,000. That means the insurance company would only pay the amount of a claim that exceeds $9,000.
One thing to remember if you’re considering hurricane coverage is that the deductible isn’t necessarily a one-time out-of-pocket expense. It may apply per storm, per hurricane season, or per year.
Your insurance premiums will depend on how your home’s construction materials, your hurricane deductible, past claims, and what types of coverage you have to protect your home from a hurricane. If you have windstorm and flood insurance in addition to your standard home coverage, you’ll pay more in premiums.
The average annual cost of a standard homeowners insurance policy with $300,000 in dwelling coverage and a $1,000 deductible is $1,150. For $250,000 in dwelling coverage, the average premium is $978.
For homes with $250,000 in dwelling coverage in Oahu and Neighbors Island, homeowners could pay between less than $500 to nearly $2,500 for windstorm coverage, according to sample insurance premiums from Hawaii’s Department of Commerce and Consumer Affairs.4
Fully protecting your home also requires flood insurance, as standard homeowners insurance and windstorm insurance both exclude flood damage. For NFIP participants in Hawaii, the current median cost of flood insurance is $1,023 annually.
The combined cost of covering your home against hurricanes is steep. But you can earn discounts by retrofitting your home with roof clips and other hurricane-proofing equipment.
Windstorm and flood insurance are important supplements to your homeowners insurance policy. You’ll need additional coverages to fully protect your investment in your home.
It’s easy to forget coverage to protect your home from hurricanes because Hawaii doesn’t experience them very often. The following information can help answer your remaining questions about Hawaii hurricane coverage.
No. The state doesn’t require it. But if you have or will take out a home loan, the mortgage company may require you to purchase windstorm and flood insurance.
It depends. Unless your homeowners insurance policy specifically excludes lava flow or volcanic eruptions, your policy might cover it. Most insurers don’t offer specific volcano insurance policies.
First, report the damage to your insurance agent. Then, submit any documentation your insurance requests to show the damage you’re claiming. The insurance company will send an adjuster to document the damage and prepare an estimate for repairs. You can begin repairs as soon as you receive your claim check.
The average annual cost of homeowners insurance for a home with $300,000 in dwelling coverage and a $1,000 deductible is $1,152 in Hilo and $1,129 in Kailua, Insurify data shows. If you have additional windstorm and flood insurance, you’ll pay more for coverage.
While hurricanes are uncommon in Hawaii, they do occur. Hurricane coverage through windstorm and flood insurance can provide peace of mind and protect you from a catastrophic financial loss in the event of a hurricane.
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