Lava Insurance

[stephanie H]

Hi,I am a new poster but have been reading for a while.My Question is I just recieved my Hawaiian property insurance bill and its almost 1900 for lava ins in Leilani Estates.Does any one have any sugestions on who else I might call.I think its crazy and they dont allow payments..
Thanks so much

stephanie

[dcl]

This was posted recently here on punaweb:
Dan De Soto
Mutual Underwriters
All Lines Agent
www.insurancehi.com
Tel: 808-961-3207
Fax: 808-969-1120
275 Ponahawai St., Ste#105
Hilo, HI 96720

[Devany]

Dan,

Is there even such a thing as Lava Insurance???

Aloha au i Hawai`i,
devany

www.myhawaiianhome.blogspot.com
www.eastbaypotters.blogspot.com

[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

[John S. Rabi]

Dan, does HPIA offer $5,000 and $10,000 deductibles on their policies?

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"

[Dan De Soto]

$3000 is the max deductible with HPIA.

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

[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

---

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

[missydog1]

If there is a lender they will get real upset if the insurance isn't paid. They would probably be willing to do an impound account, but they pay insurance out of what they collect all year, not in advance. However, they might pay rather than let coverage be dropped - and then get on your case.

My question is, why is the cost of insurance a surprise? Did it go up drastically?

[John S. Rabi]

quote:

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Originally posted by KathyH
My question is, why is the cost of insurance a surprise? Did it go up drastically?

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The insurance premium on my Leilani Estate house went from $1,200/year in 2007 to $1,650/year in 2008 and to $2,100/year in 2009. You decide if it's drastic or not! []

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"

[Obie]

quote:

---

Originally posted by John S. Rabi

quote:

---

Originally posted by KathyH
My question is, why is the cost of insurance a surprise? Did it go up drastically?

---

The insurance premium on my Leilani Estate house went from $1,200/year in 2007 to $1,650/year in 2008 and to $2,100/year in 2009. You decide if it's drastic or not! []

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"

---

It's drastic,but it couldn't be because Madam Pele sent a flow in your direction and it made the national news could it ???