Climate disasters strain Hawaii’s insurance with higher rates, coverage gaps
A report by the Insurance Fairness Project warns that climate disasters will strain Hawaii's home insurance market, leading to higher rates and coverage gaps. Hundreds of thousands of properties in Hawaii lack flood insurance, leaving homeowners vulnerable to financial ruin.
Hawaii's home insurance market is under strain due to climate disasters, according to a report by the Insurance Fairness Project. The report warns that costly climate disasters will shift Hawaii's risk profile, resulting in higher property insurance rates and worsening the insurance crisis. Hundreds of thousands of properties in Hawaii do not qualify for flood insurance, and many remain uninsured or underinsured. Recent Kona-low storms caused extensive damage, flooding hundreds of properties, and highlighting the coverage gaps. Only 4.2% of properties statewide carry flood insurance, and Hawaii farmers are unable to find insurance policies that match their needs. The Hawaii Insurance Division disputed some of the report's claims, stating that they should be viewed with caution.
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