By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Home insurance rates across Hawaii have jumped 32% to 54% over the past year, and non-renewals spiked roughly 216% from 2018 to 2023. Insurers are pulling back from older single- and double-wall wood homes, and buyers who can’t find coverage may need the Hawaii Property Insurance Association (HPIA). Get a real quote before you write an offer.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and insurance has become one of the first things I look at with anyone buying a home here in 2026. You’ve probably seen that Hawaii has some of the lowest average homeowners insurance premiums in the country. That’s true, and it’s almost beside the point. For buyers, sellers and anyone moving to Maui, where a specific property falls on the risk spectrum matters as much as its purchase price.

Why Is Hawaii’s Average Insurance Cost Misleading for Maui Buyers?

Because it blends very different properties. The statewide average mixes low-risk condos and newer concrete homes with wildfire-exposed hillside lots and older wood-frame houses, and the gap between those two groups has widened since the August 2023 Lahaina fire. The average tells you little about what an individual wildfire-zone or older wood-frame property will actually be quoted.

Why Are Maui Homeowners Insurance Rates Rising?

Home insurance rates across Hawaii have climbed 32% to 54% over the past year, depending on location and construction type. Carriers are also pulling back:

• Non-renewals, where insurers decline to continue a policy, spiked by roughly 216% between 2018 and 2023.
• DTRIC Insurance announced in October 2025 that it would withdraw from the Hawaii market.
• Insurers have been pulling coverage for single- and double-wall wood homes, whether or not the property is near a fire-prone area.

Which Maui Homes Are Hardest to Insure?

Homes in or near areas the county has flagged as higher wildfire risk, plus older wood construction. That includes parts of West Maui, Upcountry areas like Kula and Olinda, and other grass- and brush-adjacent neighborhoods, which are seeing the sharpest increases and the most coverage denials.

A move-in-ready home in a low-risk zone might still land close to the statewide average. A comparable home a few miles away, on a lot bordering dry pasture or with wood-shake construction, can get a very different quote, if a standard carrier will quote it at all.

What Is the Hawaii Property Insurance Association (HPIA)?

HPIA is Hawaii’s insurer of last resort, created by the legislature in 1991 so that basic coverage is always available somewhere. It isn’t a state agency and isn’t taxpayer-funded. It’s an association of the property and casualty insurers licensed in Hawaii, all of which are required to participate.

To qualify, a buyer or owner generally needs to show they’ve been declined by standard carriers. HPIA coverage limits may be lower than what a higher-value Maui home would cost to rebuild, so some owners layer a separate excess policy on top, and HPIA premiums generally run higher than standard market policies. Ask a Hawaii-licensed insurance agent about current HPIA limits and pricing for the specific property.

What Has Hawaii Done About the Insurance Problem?

Governor Green signed legislation in mid-2025 aimed at stabilizing the market, including reactivating the long-dormant Hawaii Hurricane Relief Fund. That fund is focused on helping condo associations turned down by multiple private insurers secure excess hurricane coverage on large buildings, alongside a new condo repair loan program and a mandated statewide study of the insurance market.

It’s meaningful progress, but it’s aimed at large condo associations. Buyers of houses, especially older wood-frame homes outside the resort core, shouldn’t expect it to directly lower their quotes.

My Take: What I’m Telling Buyers and Sellers About Insurance

For buyers, I treat insurance like financing: something to settle early, not a closing-week formality. Four steps I’d take on any Maui purchase:

• Get a real quote before you’re under contract. A home that looks affordable on price per square foot can carry a very different total cost once the premium comes in. Ask your lender and agent to help you see this before your offer deadline, not during inspection.
• Ask about construction type and wildfire exposure. Roof material, siding, defensible space and proximity to undeveloped vegetation all affect price and insurability, and they can be spotted on a walkthrough.
• Request the seller’s current policy and premium. It won’t necessarily transfer, but it shows what a carrier was recently willing to write.
• Budget for HPIA. In a higher-risk zone or with older wood construction, get an HPIA estimate for your worst-case budget so nothing surprises you near closing.

For sellers, insurability is now part of marketability. Most lenders won’t close without proof of insurability, so addressing what you can before listing (a roof upgrade, brush clearance, updated wiring) can widen your buyer pool and reduce friction in escrow. If the property is in or near a flood zone, also read what the NFIP deadline means for Maui home and condo buyers.

None of this should scare anyone off Maui. Plenty of properties insure without drama. The buyers in the strongest position are simply the ones who have the insurance conversation before they write offers. To see how a premium fits next to the rest of the payment, see the real monthly math on a median Maui home and condo.

This is general information, not insurance or legal advice. Please confirm your situation with a Hawaii-licensed insurance agent.

Frequently Asked Questions

Is homeowners insurance required to buy a home on Maui?

If you’re financing with a mortgage, yes: lenders require proof of an active policy before closing. Cash buyers aren’t legally required to carry it, but going without coverage here is a significant financial risk.

Why is Hawaii’s average insurance cost so low if Maui rates are rising?

The statewide average blends all property types and islands, including many lower-risk condos and newer construction. It doesn’t reflect what an individual wildfire-zone or older wood-frame property will be quoted.

What is the Hawaii Property Insurance Association (HPIA)?

Hawaii’s insurer of last resort, created by the legislature in 1991 for owners who can’t get coverage through a standard private carrier. It’s an association of the property insurers licensed in Hawaii, not a taxpayer-funded agency.

Does Act 296 help individual homeowners?

Not directly. The 2025 law primarily reactivated hurricane relief funding for condo associations facing large-building coverage gaps. It doesn’t change pricing or availability for single-family homeowners policies.

How can I find out what a specific Maui property will cost to insure?

Get a quote from a Hawaii-licensed insurance agent before your offer deadline, and ask your real estate agent whether the area falls within a higher wildfire-risk designation.

Ask Benjamin

If you’re weighing a purchase and want a realistic read on what a specific property or area might cost to insure, let’s talk it through before you start writing offers. I’m Benjamin Finnerty; call or text me at 808-481-9748 or email benjamin@the808team.com, and I’ll walk you through what to expect.