Frequently Asked Questions:
Homeowners Insurance

Homeowners insurance may not be required by law in Hawaii, but if you have a mortgage, your lender will most likely require homeowners insurance for the duration of your mortgage.

Even if you don’t have a mortgage, your home is an important and valuable asset. Homeowners insurance provides protection for your home, personal property, and other structures on your property if they are damaged or destroyed by a covered peril. Without a home insurance policy, the cost to repair or rebuild your home would need to be paid out-of-pocket.

A homeowners policy will also protect you in the event you or resident family members cause injury to someone else.

Homeowners insurance will vary and may be dependent on factors like your home’s condition, style of build, and location, and your claims history and policy deductible amounts.

A standard homeowners policy typically includes the following coverages:

• Dwelling Coverage – Covers damage to your home and any attached structures such as a deck or garage. The amount of dwelling coverage needed is usually calculated by the square footage of your home and what it would cost to rebuild your home.
• Other Structures – Covers damages to other structures on your property like a detached garage, carports, and storage sheds if they are damaged or destroyed by a covered peril.
• Personal Property –– Covers your belongings, including furniture and electronics at actual cash value if they are stolen or damaged by a covered loss.
• Additional Living Expense – Covers costs that you may incur if you are temporarily unable to live in your home due to a covered loss.
• Personal Liability Protection – If you or resident family members are found legally responsible for accidentally damaging someone else’s property or injuring another person, personal liability coverage may help pay for related repair costs and legal fees, in addition to helping with medical costs.

Your homeowners insurance coverages and limits should be enough to accomplish the following:

• Rebuild your home
• Replace your personal items
• Reimburse any living expenses if your home is damaged or destroyed and you are unable to live in your home
• Cover any injuries and damages that may happen on your property

A standard homeowners policy does not cover damage resulting from natural disasters like floods and hurricanes.

• Flood insurance – Hawaii is prone to bouts of heavy rains, flash flooding, and ocean surges due to high surf. Since flood losses are not covered by homeowners insurance, you would be responsible for any related repairs to your home or property. Flood insurance is offered through the National Flood Insurance Program’s (NFIP’s) Write-Your-Own Flood Insurance policy.
• Hurricane insurance – This optional policy covers wind-related damages associated with hurricanes. Banks may require homeowners to have hurricane insurance as part of their mortgage approval.

Consult with an insurance agent to discuss your situation and the policies and coverages you need.

Please note that this information is general in nature and does not represent insurance contract provisions, and is not meant to take the place of an insurance review. Please contact an independent insurance agent for more information. Copyright © 2021, Island Insurance