How Much Is Home Insurance on the Big Island of Hawaii for Second Homes?
If you’re thinking about buying a second home on the Big Island, insurance is one of the biggest costs people don’t fully understand upfront.
And it’s not one-size-fits-all.
The short answer:
Insurance costs vary widely depending on location, property type, and risk factors.
Why Insurance Costs Vary So Much in Hawaii
This is different from most mainland markets.
On the Big Island, insurance is influenced by:
Lava zones
Hurricane exposure
Distance from the coast
Property type (condo vs house)
Two homes at the same price can have very different insurance costs.
Typical Insurance Cost Ranges
Here’s a general idea:
Condos (Common for Second Homes)
Roughly$800 – $2,500 per year(for interior coverage)
The HOA usually covers:
Exterior structure
Common areas
You’re insuring the inside of the unit and your contents.
Single-Family Homes
Roughly$2,000 – $6,000+ per year
This depends heavily on:
Location
Construction
Coverage level
Homes in higher-risk areas can cost significantly more.
Lava Zones (Very Important)
This is unique to the Big Island.
Properties are located inlava zones (1–9).
Zone 1–2 = higher risk
Zone 3–9 = lower risk
Insurance can be:
More expensive in higher-risk zones
Limited in availability in certain areas
This is something every buyer should understand before choosing a location.
Hurricane Insurance
Hurricane coverage is often:
Separate from standard policies
Required by lenders (if financing)
Cost depends on:
Property value
Deductible
Location
Real Buyer Scenario
A mainland buyer was comparing two properties:
One in Waikoloa
One in a more rural area
The purchase prices were similar.
But the difference?
Insurance.
The rural property had:
Higher premiums
More limited coverage options
They chose Waikoloa because:
Insurance was more predictable
The overall ownership felt simpler
What Impacts Your Insurance Cost
Location (lava zone, proximity to ocean)
Property type (condo vs house)
Construction quality
Coverage amount
Deductibles
Common Mistakes Buyers Make
Not checking insurance before making an offer
Assuming mainland pricing applies
Ignoring lava zone impact
Underestimating hurricane coverage costs
Is Insurance Expensive on the Big Island?
It can be… depending on the property.
But in many resort areas likeWaikoloa and Mauna Lani, costs are:
More predictable
Easier to manage
Often lower than high-risk zones
FAQ
Do I need hurricane insurance?
If you have a loan, usually yes.
Is condo insurance cheaper than a house?
Generally yes, because the HOA covers the exterior.
Can I insure in all lava zones?
Not always easily. Some areas have fewer options.
Next Steps
If you’re looking at buying a second home on the Big Island, make sure to look at:
Insurance costs
HOA fees
Property taxes
Together… not separately.
Julie Wettstein is a trusted real estate broker specializing in buying and selling homes on the Big Island of Hawaii, with a focus on helping off-island sellers, second-home owners, and real estate investors navigate the unique Hawaii market with confidence.
With over 30 years of real estate experience, Julie provides expert guidance on pricing strategy, marketing exposure, negotiation, and the complexities of selling property in Hawaii—including HARPTA, FIRPTA, short-term rental regulations, and island-specific property considerations.
Known for her concierge-level service and strong negotiation skills, Julie helps clients maximize value while removing stress from the selling process—whether they are on-island or managing their property remotely.
If you’re thinking about selling your home on the Big Island of Hawaii or want a clear strategy to get top dollar in today’s market, Julie is a trusted resource for expert advice and results-driven marketing.
Julie Wettstein, Broker RB-21086
Island Homes by Scuba Julie
Big Island, Hawaii
(808) 345-6934
BigIslandDreamHomes.com
[email protected]
