Is There Volcano Insurance in Hawaii?

Hawaii’s unique geological landscape, characterized by active volcanoes, introduces specific considerations for property owners regarding natural disaster preparedness. The dynamic environment means residents often evaluate how their properties might be protected from volcanic activity. Understanding the availability and scope of insurance related to these natural phenomena is a common inquiry for those living in or considering a move to the islands.

Volcano Insurance Availability

Volcano insurance is available to homeowners in Hawaii, often provided as an endorsement or addition to a standard homeowners’ insurance policy, not as a standalone product. The availability and cost of this coverage are heavily influenced by a property’s location within Hawaii’s designated lava flow hazard zones. These zones, established by the U.S. Geological Survey (USGS), rank areas from 1 to 9 based on the probability of lava flow coverage, with Zone 1 representing the highest risk and Zone 9 the lowest.

Properties in Lava Zones 1 and 2 face higher risks, making it challenging to secure private coverage. For these areas, the Hawaii Property Insurance Association (HPIA) serves as a “last resort” option for basic property insurance. HPIA offers coverage up to $450,000, but premiums can be substantially higher, averaging around $6,000 annually for a $450,000 policy. Properties in lower-risk zones (Zone 3 and higher) have more private insurance options with lower annual premiums, possibly around $1,400.

Understanding Volcano Insurance Coverage

Volcano insurance coverage addresses direct physical damage to a dwelling and personal property resulting from volcanic activity. This includes damage from volcanic blast, airborne shockwaves, ashfall, dust, and lava flow. Fire or explosions directly resulting from an eruption are also covered. Some policies may also cover ash, dust, or particle removal if it causes direct physical loss.

However, specific exclusions apply. Damage from earth movement (e.g., earthquakes, landslides, or mudslides) is not covered by a standard volcanic eruption endorsement, even if a consequence of volcanic activity. Separate earthquake insurance is required to cover these perils. Damage to land, trees, shrubs, lawns, and other outdoor property is also excluded. Volcanic water and mud (volcanic effusion) are not covered by standard property insurance but fall under flood insurance policies, available through the National Flood Insurance Program.

Securing Volcano Insurance

Obtaining volcano insurance begins by contacting your homeowners’ insurance provider. Many standard policies do not explicitly exclude volcanic eruption, but confirm your coverage specifics. Insurers can clarify if volcanic perils are already included or if a specific endorsement is necessary. Also inquire about any waiting periods before coverage becomes effective.

For properties in higher-risk lava zones (Zones 1 and 2), where private options are limited, explore coverage through the Hawaii Property Insurance Association (HPIA). When discussing coverage, specify your property’s lava flow hazard zone, as this impacts policy terms and premiums. Review all policy documents to understand covered volcanic perils, exclusions, and deductibles.