Hawaiʻi Homeowners Face Nonrenewals Amid Rising Insurance Costs and Stricter Underwriting

Homeowners in Hawaiʻi are facing increasing challenges in securing or renewing homeowners' insurance, primarily due to age-related property conditions and location risks. Insurance companies are nonrenewing policies for homes with older roofs, outdated electrical systems, or those situated near the ocean, with hurricane insurance rates notably escalating. The instability in Hawaiʻi's insurance market is marked by companies like Crum and Forster exiting residential policies, and others such as State Farm and DB Insurance imposing stricter underwriting guidelines. Insurers are wary of insuring homes with certain construction types and aging infrastructure, resulting in premium hikes and reduced availability of coverage. This trend reflects broader challenges in risk management and underwriting in high-exposure coastal regions, influencing regulatory and market dynamics in homeowners' insurance.