Cost of Big Island Homeowners Insurance?

[terracore]

The reason why you don't see mobile homes, or even RVs for that matter, is not just the transportation cost. The insects and climate destroy them very quickly. The economics just don't work out.

[davephan]

Originally Posted by terracore

The reason why you don't see mobile homes, or even RVs for that matter, is not just the transportation cost. The insects and climate destroy them very quickly. The economics just don't work out.

My assumption was either the transportation cost of the mobile homes and RVs is extremely expensive, or the laws in Hawaii forbid them. I'm not sure why the insects and the climate would destroy them. I haven't researched the mobile homes and RVs expected lifetime in different locations. But I haven't heard of mobile homes and RVs being destroyed by insects and the climate in Florida or California. I'm assuming that insect control could be applied to mobile homes and RVs in a similar manner that insect control can be applied to conventional homes, including tenting. Maybe there is more corrosive salt in the air in Hawaii, compared to the coastal areas of Florida or California.

[EddieLo]

Originally Posted by kauailover

Hurricane insurance & general liability for our place on Kauai is over $1300 a year. Maybe we need to shop around? Some of the numbers you guys are throwing around seem very reasonable.

I have posted that Kauai hurricane insurance is required if you have a mortgage. Why? Well, because Kauai gets hit by hurricanes. Duh! Now I read that BI also has mandatory coverage for a weather phenomena called a hurricane, something that has never hit the BI in recorded history. So why is hurricane insurance required for an event that has never occurred? Beats the hell out of me. Could it because some politician was paid off by an insurance lobbyist? I mean, would hurricane insurance be required in Syracuse, NY, where there has NEVER been a hurricane, or tornado? So why in BI if there has never been one to hit the island also? I pay less than $1000 a year for coverage for my Kapaa house. Klover check out Zephyr. You might be able to save some money

[davephan]

Originally Posted by EddieLo

I have posted that Kauai hurricane insurance is required if you have a mortgage. Why? Well, because Kauai gets hit by hurricanes. Duh! Now I read that BI also has mandatory coverage for a weather phenomena called a hurricane, something that has never hit the BI in recorded history. So why is hurricane insurance required for an event that has never occurred? Beats the hell out of me. Could it because some politician was paid off by an insurance lobbyist? I mean, would hurricane insurance be required in Syracuse, NY, where there has NEVER been a hurricane, or tornado? So why in BI if there has never been one to hit the island also? I pay less than $1000 a year for coverage for my Kapaa house. Klover check out Zephyr. You might be able to save some money

Perhaps the reason people in the Big Island have to pay for hurricane insurance because the risk of a first time hurricane event is high enough. The Big Island does not have the protection of being inland on a large continental land mass, which significantly reduces the impact the a hurricane can have. However, since the Big Island has not had a hurricane event yet, the hurricane insurance should be less expensive than other islands that have been impacted by hurricanes.

Paying $1,300 a year for hurricane insurance does not seem too expensive to me verses the risk and impact of losing hundreds of thousands of dollars if a hurricane completely destroys your home and you're assuming the risk, not buying hurricane insurance. You have to also consider the quality of the insurance companies. If the insurance company has a track record of poor claim payouts, the lower cost insurance premium might become a very bad deal. However, if the quality of the insurance company is similar, the lower cost insurance premium is a better deal. It's also worth the effort to shop for insurance periodically. Insurance companies take advantage of the loyal customers who stick with the same insurance company for decades by gradually raising their prices too high.

Does the hurricane insurance cover damage by storm surges? A storm surge wave could completely destroy your home very quickly. If your home is completely destroyed or damaged by a hurricane, what is your maximum out of pocket financial loss that is not covered by the insurance?

[terracore]

The cost of our hurricane coverage was negligible. We got standard plus hurricane coverage for less than what some other companies wanted for just standard, however our hurricane coverage is limited to "structural damage only", in other words, it only protects the bank's interest.