Buying a Home in Hawaii’s Lava Zones 1 & 2: What You Need to Know About Homeowners Insurance
Hawai‘i’s Big Island offers some of the most stunning landscapes in the world—lush rainforests, black‑sand beaches, and dramatic volcanic terrain. But for homebuyers considering property in Lava Zones 1 or 2, it’s essential to understand how volcanic risk affects homeowners insurance. These zones carry the highest probability of future lava flow activity, and that risk directly shapes insurance availability, cost, and long‑term affordability.
This guide breaks down what buyers need to know before making an offer.
What Are Lava Zones 1 and 2?
The U.S. Geological Survey ranks volcanic hazard on a scale from 1 to 9, with Zone 1 representing the highest risk and Zone 9 the lowest. Zones 1 and 2 are primarily located on the flanks of Kīlauea and Mauna Loa, two of the world’s most active volcanoes.
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Zone 1: Areas where vents have opened in the past and where new eruptions are most likely.
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Zone 2: Areas downslope from Zone 1 that have been repeatedly covered by lava flows in historical times.
These zones have seen significant lava activity, including the 2018 Kīlauea eruption, which destroyed over 700 homes.
🏠 How Lava Zones Affect Homeowners Insurance
1. Higher Premiums—Sometimes Dramatically Higher
Homeowners in Zones 1 and 2 often face steep insurance premiums due to the elevated risk of lava damage. Some residents have reported increases of 400% or more, according to recent legislative findings. Premiums that once cost $1,500 annually have jumped to $5,000 or higher for some homeowners.
2. Limited Insurance Options
Many private insurers have reduced their presence or stopped writing new policies in these high‑risk zones. As a result, buyers often have only one option:
3. Hawaii Property Insurance Association (HPIA)
HPIA is the state‑run insurer of last resort, created to ensure that homeowners in high‑risk areas can still obtain coverage. However:
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Premiums are typically higher than private insurers.
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Coverage may be more limited.
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Demand has surged as private insurers exit the market.
What Standard Homeowners Insurance Covers—and Doesn’t
A key point many buyers don’t realize: Standard homeowners insurance does NOT cover lava damage.
To protect against lava flows, homeowners typically need:
✔ Lava (Volcanic) Damage Coverage
This may be included in HPIA policies or offered as a rider by select insurers.
✔ Additional Living Expenses Coverage
Some policies cover temporary housing if lava renders a home uninhabitable.
✘ What’s Often Excluded
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Earth movement (unless specifically added)
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Damage from volcanic smog (vog)
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Losses from evacuation unless the home is damaged
💡 Tips for Homebuyers Considering Zones 1 or 2
1. Get Insurance Quotes Early
Before making an offer, request quotes from both private insurers and HPIA. Premiums can significantly affect affordability.
2. Budget for Higher Long‑Term Costs
Insurance in these zones are not only expensive—it can fluctuate dramatically based on volcanic activity and insurer participation.
3. Understand Your Policy in Detail
Read the fine print. Lava coverage varies widely between insurers.
4. Consider Mitigation Measures
Some insurers may offer better rates for homes with fire‑resistant materials or defensible space.
5. Stay Informed About Legislative Changes
Hawaii lawmakers are actively exploring solutions, including potential subsidies for HPIA to make premiums more affordable.
Should You Buy in Lava Zones 1 or 2?
Plenty of people do—and love it. These areas offer affordability, natural beauty, and vibrant communities. But buyers must go in with eyes open:
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Insurance will cost more.
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Options may be limited.
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Risk is part of the lifestyle.
If you’re prepared for the insurance landscape and understand the hazards, owning a home in these zones can still be a rewarding experience.
