Homeowners insurance cost continues to rise for those living in lava zone 1 and lava zone 2, which is primarily in Puna and Pahoa on the Big island. You can view my last blog about the issues obtaining insurance for Puna district neighborhoods such as Leilani Estates, Hawaiian Shores/Beaches, Seaview and Puna Palisades.
What are Lava Zones?
Lava Zones 1 and 2 are considered the highest-risk areas on the Big Island for volcanic activity — primarily in Lower Puna and parts of Pahoa. Because of the increased risk, insurance carriers treat these areas differently, resulting in fewer coverage options and higher premiums.
Rising Homeowners Insurance Costs in Lava Zones 1 and 2
Since my last post in September, there has been another rate increase and currently Hawaii Property Insurance Association (HPIA) will not insure homes that are used as short term vacation rentals.
New Option: Mutual Members Insurance Co-Operative
Mutual Members Insurance Co-operative is exploring a member-owned insurance co-op for primary residence owners of single family homes located in lava zones 1 and 2. This will be an alternative to the HPIA with the goal of lowering insurance premiums.
Mutual Members Insurance Co-operative is conducting a feasibility study and needs feedback from current homeowners if they are interested in joining a member-owned insurance co-op. Interested homeowners can complete the Google Form on their website by August, mutualmembersinsurance.org/home. For questions or more information, send an email to steven.g@mutualmembersinsurance.org.
Insurance Options for Investment Properties in Lava Zones
There is also an additional insurance resource for owners that have short-term or long-term investment properties in lava zone 1 or 2. National Real Estate Insurance Group offers a residential investment property insurance program. Request for a quote is available online.
Angelo
April 1, 2025
Is mutual members insurance no more?