Council Resolution on LZ1 & LZ2 High Cost of Home Insurance

[AaronS]

I'm not sure what you mean? There wasn't any explicit date on the quote when it would expire. American Modern Insurance is the underwriter of the coverage through Atlas.

[terracore]

I'm not sure what you mean? There wasn't any explicit date on the quote when it would expire. American Modern Insurance is the underwriter of the coverage through Atlas.

My bad.  I meant, what is the term of the policy for that rate (one month, 6 months, 12 months, etc).  Homeowner's policies are usually quoted in annual terms, but lately I've seen them quoted in monthly or 6-month terms.  I'm out of touch with what these figures mean because I've seen monthly premiums in LZ2 that approximate our yearly premium in LZ3.

And I feel like they're coming for us next.

Thanks for sharing the data you have.

[AaronS]

I presume the premium quote is for a 12 month period. There was no mention of the term length though, although my brother was jumping joy regarding the quote I received. He was quoted $2,016 just for liability (LZ2) coverage through Aloha Insurance Services out of Kona. The underwriter of that quote was some local outfit that I never heard of.

[terracore]

$2k just for liability is insane. How does living in LZ2 make somebody more likely to have someone injured on their property? Lava related injuries are very rare and usually involve somebody doing something stupid.

The quotes we're seeing for LZ2 are closer to $500/month for homes with a traditional type mortgage on them and the coverage that entails and most of those cap out at $450k of coverage.

[AaronS]

My brother was paying roughly $1,000 liability and hurricane coverage via Aloha Insurance Services (Universal Property & Casualty). UP&C is pulling out and not renewing his coverage starting February 2024. Aloha quoted my brother $2,000 liability coverage, which really freaked him out. He'd have to take a short term loan just to cover it. The good news I got that quote from Atlas that is cheaper and includes both hurricane and liability.

[Rob Tucker]

Well, my lender has billed us for insurance on our mortgage starting in Feb.  $3,700 on a value of $497k.  Ce la vie.

Standard Guaranty Insurance Company.

[leilanidude]

Well, my lender has billed us for insurance on our mortgage starting in Feb.  $3,700 on a value of $497k.  Ce la vie.

Standard Guaranty Insurance Company.

Does that man a total loss has $497k payout or that your mortgage balance is $497k? Also, if that includes lava and hurricane, it doesn't sound that outrageous?

[terracore]

Well, my lender has billed us for insurance on our mortgage starting in Feb.  $3,700 on a value of $497k.  Ce la vie.

Standard Guaranty Insurance Company.

Does that man a total loss has $497k payout or that your mortgage balance is $497k? Also, if that includes lava and hurricane, it doesn't sound that outrageous?

Yeah the Devil is in the details.  A "standard" homeowners policy covers the bank's interest, plus remediation (hauling away the remains of a burned building, hazmat fees, or whatever), rebuilding (which means at new building codes, so probably more than one would think), replacement of other damaged personal property, and usually stuff like hotel/laundry/etc expenses in the interim, which all combined can easily be double, triple, or more than the perceived value of the structure.

Disclaimer, I'm not an insurance guy, just going off stuff I remember from people who have been through things like having their homes burned down.

[Rob Tucker]

As I read it it does not include hurricane or lava.

[Chas]

I specifically pressed my agent, with Liberty Mutual, about the "lava" thing. He said they didn't have lava insurance, and said that it is covered under "fire", since that's what ultimately destroys your house.

Whether that actually is true I hope I never have to find out. I am in LZ3 though, so hopefully not.

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Rob,
I have hurricane insurance through icat, from Hawaiian Islands Ins. 808 933 3000.
It is $415 for a year.