11 May Hawaii Flood Insurance Risk
When most mainlanders hear the word, “Hawaii,” they picture luaus and leis, white sand beaches, clear blue water, and perfect waves for surfing. It’s true- Hawaii is almost paradise on earth, but even paradise can have its problems. Floods are one of the most destructive natural disasters that can affect the islands of Hawaii, and in recent years, floods have caused nearly two billion dollars in damage to Hawaiian property. Homeowners should be aware of the potential for flooding on the Islands and purchase sufficient flood insurance to protect their residence and all of the contents within the building. There are two options for property owners in Hawaii who are in the market to purchase a flood insurance policy.
Each of Hawaii’s counties are participating communities in the National Flood Insurance Program (NFIP). This means that homeowners have access to subsidized Hawaii flood insurance provided by the federal government, which most residents will be able to obtain through a local insurance agency that partners with the Federal Emergency Management Agency (FEMA) and NFIP. As part of their partnership with the federal government, these communities can qualify for additional subsidization of insurance policies or cheaper rates altogether if residents take special precautions and make special modifications to their homes. These precautions and modifications include raising the level of the home, raising heating and cooling units above flood level, and installing flood vents in the space beneath the house.
It is important to know that the decision to obtain Hawaii flood insurance may not be a voluntary decision for some homeowners. Homes that are mortgaged or insured through any federal agency and are located in a Hawaii flood zone are required by law to be covered with a Hawaii flood insurance policy. But whether or not the decision to purchase a Hawaii flood insurance policy is optional, Hawaiian homeowners should make their way through the decision process as quickly as reasonably possible, as flood insurance policies that are obtained through the NFIP could take as long as thirty days to go into effect after the policy has been approved.
Property owners who are in search of Hawaii flood insurance policies for their homes in Hawaii also have a newer option for coverage: the National Catastrophe Flood Insurance Program (NCIP). Unlike the NFIP, this program is underwritten by private firms and is a private insurer. The NCIP may be able to provide more comprehensive coverage at a lower price, and that coverage would begin to take effect only fifteen days after the policy has been approved.
Owning a property on the Hawaiian Islands is a privilege that few others can claim to enjoy. The natural majestic beauty, the moderate and steady climate, and rich culture and history make the Islands a perfect place to call home. By purchasing a flood insurance policy, homeowners are taking the precautions necessary to ensure that in the event of a damaging flood, their home and the possessions inside are covered and can be restored or replaced without additional extravagant costs.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
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