Lava Insurance

[rbbyrd]

quote:

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Originally posted by Dan De Soto

Lava is covered under homeowners polcies that we sell. Leilani estates is in lava zone 1 which is considered the highest risk. We are looking for options in zone 1 but right now there are not many.

HPIA is the only insurer admitted in the state of Hawaii that writes new coverage in zone 1. The only other option is out of state insurers like Lloyds and Lexington. Our best out of state program in zone 1 starts at $2,500 + fees and taxes. It includes hurricane but usually your dwelling coverage has to be over $300,000 before saving you money over the total of a HPIA homeowner's policy and a standalone hurricane policy. It is possible to finance the out of state policy premiums but it requires about 30% down and the interest rate is around 15%.

If you have a mortgage maybe your lender would add the insurance to your escrow and allow you to pay them monthly. To save premium you should also look at increasing your deductible (check with your lender for the maximum allowed, usually the greater of 1% of the dwelling or $1000) and make sure you are not overinsured.

Dan De Soto
Mutual Underwriters
Insurance Agent
www.insurancehi.com
dan@mutualunderwriters.com
Tel: 808-961-3207
Fax: 808-969-1120
275 Ponahawai St., Ste#105
Hilo, HI 96720

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I'm a bit confused.
Does the type policy referred to above; best out of state program in zone 1 starts at $2,500 + fees and taxes,cover everything: normal hazards plus lava and hurricane coverage? Or are hurricane and lava covered under separate policies?

RB Byrd
Flower Mound, TX