Hawaii is the newest state to join the United States and is located in the Pacific Ocean. The Aloha State consists completely of islands. The state is known for its pineapples, volcanoes, flowers, beaches and Pearl Harbor. Because of the increased risk of a natural disaster, such as a hurricane, it is wise for residents in Hawaii to have home insurance.
Home insurance is not mandatory in Hawaii; however, many lenders require homeowners to purchase it. Insurance companies are allowed to set its own regulations, but they cannot break Hawaii’s unfair claims practices mandates.
The Insurance Division in Hawaii states that insurance companies are required to occasionally file their tax and financial statements, so they can prove their solvency. The company must turn in a list of their investments. The purpose of this law is to decrease the risk to homeowners, so they are guaranteed to receive payment for their claim.
Homeowners in Hawaii should make sure they know exactly what their policy covers, as most policies in the state do not cover things such as floods or earthquakes in their policies. Individuals can purchase extra coverage in which such events will be covered.
In Hawaii, home insurance coverage can be broken down into several types of insurance:
• Home coverage: This will cover the structure itself. It will also include the garage if it is attached to the home.
• Structures not connected to the home: This normally includes things such as a swimming pool, a garage that is not attached and a tool shed.
• Coverage for Personal Property: This replaces your personal property if it is damaged or destroyed.
• Medical expenses for others who are hurt or injured: If someone is injured on your property, this will cover the medical bills.
• Liability coverage: This covers legal fees if someone files a lawsuit.
Even though home insurance is not required in Hawaii, it is a good idea for homeowners to purchase it, so they will not suffer huge financial losses in case disaster strikes. Home insurance can give property owners peace of mind that they will be covered financially.



