Hawaii
flooding is no joke! If your property is located in a FEMA-designated high-risk flood zone, you may be required by your mortgage lender to carry insurance. Even if you’re not required to have it, it’s smart to buy a policy.A standard homeowners policy protects against several hazards, but it doesn’t cover flooding damage. Flooding is one of the most common natural disasters in the US, but unfortunately, only 27%
of US homeowners have flood insurance. Weather patterns are becoming more unpredictable and extreme, especially if you live on an island. Don’t wait until it’s too late to protect your home! While you can’t stop a flood, you can ensure you have the resources to recover from one.
Here’s everything you need to know about flood insurance in Hawaii. In this article, Jerry
explains what flood insurance is, what it covers, what it doesn’t cover, Hawaii flood zones, how much it costs, whether you need it, and where to find it. Remember, you’ll need car insurance
if you want to protect your vehicle from flood damage. What is flood insurance?
This is a type of property insurance that covers financial losses from water caused by flooding.
A standard homeowners policy includes a clause for water damage. However, this does not cover your house or your possessions if the water damage was caused by a flood. That’s why it’s important to buy an additional flood policy.
What does flood insurance cover?
Flood insurance includes two categories: building coverage, which covers the physical buildings, and contents coverage, which covers the contents inside the building.
With these, your flood policy may provide financial protection for your building, the foundation, furniture, carpet, appliances, HVAC systems, electronics, clothing, and more.
There are some notable exclusions. Not all objects or large-scale floods may have coverage. Sewer backups indirectly caused by a huge flood are not covered. Basement property, cars, cash, and living expenses incurred as a result of flooding are also excluded.
Here’s a more detailed breakdown of what’s covered (and what isn’t) under each type of insurance:
| | |
|---|
| Electrical and plumbing systems, Water heaters and furnaces, Large appliances like dishwashers or refrigerators, Permanently installed bookcases, cabinets, and paneling, Permanently installed carpets, Window blinds, Foundational walls, staircases, and anchorages, Detached garages, Fuel tanks, solar panels, and well water tanks/pumps | Decks and patios, Swimming pools, Fences and landscaping |
| Clothing, Furniture, Electronic equipment, Curtains, Washing machine and dryer, Portable air conditioners, including window units, Carpets not included in building coverage, Valuables such as artwork up to $2,500 | Valuable papers, Currency, Anything stored in a basement |
MORE: Does home insurance cover flooded basements?
Do you need flood insurance in Hawaii?
Probably. It depends on whether you live in a high-risk flood zone and who holds your home loan.
While there are no state-wide laws that compel homeowners to carry flood insurance in Hawaii, lenders may require it. Flood insurance is a requirement for federally-backed mortgages if the property is located in an area at high risk for flooding.
If you need flood insurance in Hawaii, start with NFIP (National Flood Insurance Program
). This is a program through FEMA (Federal Emergency Management Agency), which determines risk and offers flood insurance to homeowners. To buy an NFIP-backed flood insurance policy, you must live in one of Hawaii’s participating communities
. If you don’t, you can still buy flood insurance, but you’ll need to go through a private company like FloodSimple or Neptune. Anyone can buy flood insurance, even if you’re not mandated to carry it!
Considering that Hawaii is a coastal state with frequent flooding, it’s wise to carry flood insurance. In fact, approximately 21.64% of Hawaiian households have flood insurance—a rate far higher than most other states.
What flood zones require flood insurance in Hawaii?
You can find Hawaii flood maps here
. For more detailed information, use the Flood Hazard Assessment Tool (FHAT). Enter your address or zoom into different spots to find out the flood zone code associated with that area. Here’s a quick guide to understanding the codes. The general code for a flood hazard area is SFHA or Special Flood Hazard Area. This means that the area has a 1% chance of being flooded each year. Within this category are sub-categories:
Zone A, AO, AH, A1-30, AE, A99, AR, AR/AE, AR/AO, AR/A1-A-30, AR/A
Federal lender requirements usually require Hawaii homeowners to carry flood insurance if their property is located in a zone that starts with A or V.
Less risky are the moderate hazard areas, Zone B or Zone X (shaded). These areas have a 0.2% annual chance of flooding. The least risky areas are minimal flood hazard areas, labeled Zone C or Zone X (unshaded). These are usually located in higher elevation areas.
Hawaii is made up of islands, so many areas have similar percentages for flood risk—except high elevation areas.
Key Takeaway If you live in a designated high-risk flood zone (starting with A or V) and have a government mortgage, you must purchase flood insurance.
How much does flood insurance cost in Hawaii?
The average cost of flood insurance in Hawaii is $684 per year or $57 per month. That’s lower than the national average of $739 per year.
However, there is a new pricing methodology arriving soon from NFIP. Nationally, many premiums will drop thanks to more accurate calculations. The majority of Hawaii premiums will decrease in spring 2022 but some will increase by about $20 per month.
Premiums are calculated based on a variety of factors. In addition to your zip code, the size, age, and type of building will affect your rate. Older and larger buildings tend to cost more to cover. Residential policies typically limit coverage to $250,000 for building coverage and $100,000 for contents coverage.
Note that your provider may also set a deductible limit.
MORE: Does car insurance cover weather damage?
How to save money on flood and auto insurance in Hawaii
If you want to reduce the cost of flood insurance in Hawaii, try:
Choosing a higher deductible
Submitting an elevation certificate
to your insurance company Selecting contents-only coverage
Be aware that flood insurance doesn’t cover your car. To make sure your vehicle is protected in the event of a flood, you’ll need a car insurance policy. Use the Jerry
app to compare rates and find a policy with the right coverage for your situation. On average, Jerry users save $887 a year on car insurance. That’s more than the annual cost of flood insurance in Hawaii!
“I was struggling to find an affordable deal in Hawaii because insurance here is so expensive. Working with Jerry
, filling out the information is painless, and I connected with an agent to talk about specific plans. I definitely could not have found a better deal without Jerry!” —Marlin M.
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