The cost of homeowners insurance in Hawaii has been on the rise, following a devastating wildfire in August 2023 that caused significant damage and claimed the lives of 101 residents. The fires resulted in the loss of thousands of properties and caused an estimated $6 billion in property damage, leading to a spike in insurance premiums across the state. The average homeowners insurance premium in Hawaii has increased from $957 in 2012 to $1,299 in 2021, and continued rising to $1,445 in 2023. Insurance costs for condominiums have also seen significant hikes, with premiums rising by 100 percent to 1,000 percent in certain areas.
According to industry experts, the increase in homeowners insurance premiums in Hawaii can be attributed to inflation, increased costs to rebuild, and heightened risks of extreme weather events. The average approved rate increase for Hawaii policyholders was 5.4 percent in 2022 and 5.6 percent in 2023, according to S&P Global. Premiums for some condominiums have jumped drastically, with one property seeing premiums rise from $70,000 to $270,000 a year. As of October 2023, more than 3,700 homeowners had filed insurance claims related to the Lahaina wildfires, totaling more than $1 billion in losses. Many claims are still being processed, adding to the financial burden on residents.
The rising cost of homeowners insurance in Hawaii is part of a larger trend seen across the country, with premiums increasing due to inflation and the growing risks of extreme weather events. The average written premiums in Hawaii and the rest of the country have continued climbing, reaching $1,445 in 2023. This is still below the national average of $1,650 for that year. The impact of the Lahaina wildfires has exacerbated the already rising insurance costs, with many residents struggling to afford coverage for their homes.
Homeowners in Hawaii are feeling the financial strain of increased insurance premiums, with some experiencing significant hikes in costs for coverage. The cost of insurance for condominiums has also skyrocketed, making it challenging for residents to afford protection for their properties. With thousands of insurance claims still being processed in relation to the Lahaina wildfires, the financial impact on residents continues to grow. The rising insurance costs in Hawaii highlight the challenges faced by homeowners in protecting their properties in the face of escalating risks and disasters.
As insurance premiums continue to rise in Hawaii, residents are facing mounting financial pressure to afford coverage for their homes. The aftermath of the deadly Lahaina wildfires has further increased insurance costs, with many residents struggling to keep up with the escalating premiums. The impact of extreme weather events and the risks associated with them are contributing to the spike in insurance costs, making it increasingly difficult for homeowners to protect their properties. The rising insurance premiums in Hawaii underscore the urgent need for affordable and accessible coverage for residents facing the increasing threats of wildfires and other natural disasters.
