Landlord Insurance in Hawaii: Costs, Requirements & Best Providers

The low Hawaii number leaves out hurricanes

At $900, Hawaii’s benchmark is the lowest in the country, and a landlord (DP-3) version would typically run about $1,040 to $1,130. Don’t budget from that. Standard Hawaii policies typically exclude hurricane wind, so the benchmark covers fire, theft, liability and ordinary water damage only.

Hurricane Iniki in 1992 devastated Kauai and pushed many insurers out of the market. Today, owners buy hurricane coverage as a separate policy or endorsement, with a deductible set as a percentage of the dwelling limit. Most lenders require it. Price it alongside the base policy, because together they’re your real premium.

Lava zones on the Big Island

The USGS divides Hawaii Island into lava flow hazard zones from 1 (highest) to 9. Zones 1 and 2 cover Kilauea’s summit and rift zones, including much of Puna, where the 2018 eruption destroyed Leilani Estates. Many private insurers won’t write new policies there. The Hawaii Property Insurance Association, the state’s FAIR Plan, does, with basic coverage. Some lenders won’t lend in zones 1 and 2, so check the zone before you buy.

Wildfire after Lahaina

The August 2023 Maui wildfires destroyed most of Lahaina. Insurers now look harder at wildfire risk on the dry leeward sides of the islands, and dwelling limits that seemed fine before the fire proved too low for rebuilding costs. Check that your dwelling limit reflects what construction actually costs in Hawaii, where materials and labor run high.

Flood and tsunami

Flood, including tsunami and storm surge, is excluded from landlord policies. Lenders require flood insurance in FEMA special flood hazard areas, through the National Flood Insurance Program or a private insurer. Many coastal properties on Oahu and Maui sit in mapped zones.

Condo rentals

Many Hawaii landlords own condos in Honolulu or resort areas. The association’s master policy covers the building, and you insure your unit’s interior, your liability and loss of rent. Master policy premiums have climbed sharply in recent years, which flows through to your association dues. Ask for loss assessment coverage, which helps if the association bills owners after a big claim. Obie writes condo unit policies.

Short-term rental rules in Hawaii are strict and vary by county. If you rent short-term legally, you need short-term rental coverage, not a standard landlord form.

Ways to lower a Hawaii premium

1. Install hurricane clips, straps and opening protection, and ask the hurricane insurer for wind mitigation credits.
2. Choose a hurricane deductible you could pay after a storm, not the lowest-premium option.
3. Treat for Formosan termites on a schedule; termite damage is excluded.
4. Get an elevation certificate before pricing flood on a coastal property.

Hawaii deposit and notice rules

Hawaii caps the security deposit at one month’s rent, plus up to one more month as a pet deposit where pets are allowed. You must return it with a written itemized statement within 14 days after the tenancy ends, and wrongful retention can bring treble damages (Haw. Rev. Stat. § 521-44). Ending a month-to-month tenancy takes 45 days’ notice from you, and entry needs 2 days’ notice. With a 14-day return window, take move-out photos the day the tenant leaves, since you won’t have long to price repairs.