New Report: Hawaiʻi’s Home Insurance Crisis Deepens as Climate Disasters and Coverage Gaps Leave Communities Exposed
FOR IMMEDIATE RELEASE
April 23, 2026
Contact: contact@insurancefairnessproject.com
New Report: Hawaiʻi’s Home Insurance Crisis Deepens as Climate Disasters and Coverage Gaps Leave Communities Exposed
Today, the Insurance Fairness Project released a new report, The Escalating Home Insurance Crisis in Hawaiʻi: How Climate Disasters and Coverage Gaps Are Straining Island Communities, detailing how intensifying climate disasters and systemic insurance challenges are leaving residents, farmers, and businesses across the islands increasingly vulnerable and exposed to financial and physical risks.
The report finds that back-to-back extreme weather events are overwhelming Hawaiʻi’s insurance system. As economic losses mount into the billions, insurance is becoming both more expensive and harder to obtain, with some homeowners seeing premiums double in just one year and others losing coverage altogether.
“Hawaiʻi is one of the states on the frontlines of the climate crisis, and the insurance system simply isn’t built to keep up,” said TJ Helmstetter, a spokesperson for the Insurance Fairness Project. “Families are being priced out of protection, farmers are left without viable options, and entire communities are one disaster away from financial ruin. Policymakers have a narrowing window to strengthen infrastructure, close dangerous coverage gaps, and ensure that families are not shouldering the entire bill.”
Key findings:
High-impact and high-cost climate disasters have worsened Hawaiʻiʼs insurance crisis. From the Maui wildfires to this yearʼs flooding and storms, back-to-back extreme weather events are overwhelming the stateʼs insurance system, and homeowners are paying the price.
Insurance is becoming more expensive and harder to access. Premiums have surged dramatically in the last few years, some even doubling from 2025 to 2026, leaving many homeowners struggling to afford coverage, facing reduced protection, or unable to find coverage at all.
Coverage gaps are leaving communities financially exposed. Hundreds of thousands of properties do not qualify for flood insurance, and many residents, farmers, and businesses remain uninsured or underinsured despite growing risks.
Critical infrastructure weaknesses are making disasters more costly. Aging and inadequate systems are amplifying damage, increasing losses, and putting additional strain on insurers and policyholders.
Policymakers have options to protect their constituents. While state-led efforts have provided some relief, more long-term solutions will be needed to address rising climate risks and stabilize Hawaiʻiʼs insurance market.
The report observes that the actions taken to date by state leaders are not keeping pace with escalating risks. Long-term solutions will require greater investments in resilient infrastructure, expanded access to affordable insurance, and stronger accountability for corporations contributing to climate-driven losses.
With insurance costs rising and coverage becoming increasingly scarce, the report concludes that Hawaiʻi’s crisis is not only an insurance issue, but a growing threat to critical housing stability, economic security, and community resilience across the islands.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
