Hawaii FAIR Plan: what it covers, what it costs, who qualifies

Does Hawaii have a FAIR Plan?

Yes. Hawaii's FAIR Plan is the Hawaii Property Insurance Association, official site www.hpiainfo.com ↗. It exists as the insurer of last resort for property owners who can't get coverage in the standard ("admitted") market.

What does it cover?

HPIA (FAIR Plan): basic property insurance on four policies — a Dwelling policy (ISO DP 00 02 form), a Homeowner's policy (HO 00 02), a Renter's policy (HO 00 04), and a Unit-owner's policy (HO 00 06) — covering up to 16 named perils: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism; theft; falling objects; weight of ice/snow/sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart of a steam/hot-water heating system; freezing; sudden and accidental damage from artificially generated electrical current; volcanic eruption. HPIA does NOT cover hurricane (the HHRF and the private market handle that) and does NOT cover flood. HPIA has historically been the principal market for residential property in Lava Zones 1 and 2 on Hawaii Island. Under SB 1044 (Act 296, 2025) HPIA's powers were expanded so it can write property insurance (all perils except hurricane) for eligible condominium/townhouse buildings statewide, and — if the Insurance Commissioner and HPIA find a market failure — for townhomes, single-family homes and other property categories. HHRF: hurricane ONLY, written as EXCESS coverage above the first $10 million of insured value for eligible condo/townhouse AOAOs (the AOAO must carry separate primary hurricane coverage for the first $10M).

How much will it cover?

The current cap on a single dwelling policy is HPIA: maximum Coverage A (dwelling) limit is $450,000; policy limits range from $50,000 to $450,000 (deductibles $500 / $1,000 / $2,000 / $3,000). For the HHRF (hurricane excess for condo/townhouse AOAOs): coverage attaches as EXCESS above the first $10 million of insured value (the AOAO buys separate primary for the first $10M), and the maximum HHRF policy is $140 million — these are per-building TIV-layer figures, not a per-dwelling Coverage A cap. (Hawaii Property Insurance Association / Hawaii DCCA Insurance Division, verified 2026-05-11).

Who is eligible?

HPIA (FAIR Plan): available to property owners with an insurable interest in Hawaii property who cannot obtain coverage in the private market (historically the principal market for properties in Lava Zones 1 and 2 on Hawaii Island); PropertyCasualty360 reports HPIA requires the property to have been declined by two licensed residential property insurers. Applications must come through a licensed Hawaii P&C agent, with a $250 deposit premium to bind. HHRF: an Association of Apartment Owners (AOAO) of a condominium or townhouse must apply through a licensed insurance producer; coverage is hurricane only, written as excess above the first $10M of insured value (the AOAO must buy separate primary hurricane coverage for the first $10M); HHRF policies have a one-year term and do NOT auto-renew (the AOAO must reapply annually). HHRF started accepting applications June 24, 2025.

How do you apply?

HPIA: through a licensed Hawaii property & casualty insurance agent (HPIA does not sell directly); a $250 deposit premium binds coverage, with the balance due on policy receipt. HHRF: a condominium/townhouse AOAO applies through its licensed insurance producer; HHRF is administered by the Hawaii DCCA Insurance Division / the HHRF board, which began accepting applications June 24, 2025.

Need a broker who writes the HI FAIR Plan? →

How much does it cost?

HPIA: more expensive than the standard market for narrower coverage (and historically the only option for Lava Zone 1-2 properties), capped at $450K Coverage A. HHRF: a cheaper, state-backed alternative to E&S hurricane excess for condo/townhouse AOAOs — by late 2025/early 2026 associations that moved into the HHRF layer were reporting hurricane premiums down roughly 30-70%, and use of the fund was growing significantly.

What is changing right now?

Hawaii condo insurance crisis (2023-2025): after the August 2023 Maui (Lahaina) wildfire and a hard global reinsurance market, roughly 375-390 condominium buildings became underinsured for hurricane; some AOAOs saw hurricane premiums spike by up to ~1,000%, and Fannie Mae/Freddie Mac's requirement of 100% hurricane coverage froze some condo mortgage lending. Response: Gov. Green reactivated the dormant Hawaii Hurricane Relief Fund in 2024, and SB 1044 (Act 296, signed 2025) expanded HPIA's powers (it can now write all-perils-except-hurricane coverage for condo/townhouse buildings statewide), provided funding/appropriations, established a Condominium Loan Program to help buildings remain insurable, and directed the Insurance Commissioner to study market-stabilization strategies. The HHRF began accepting applications June 24, 2025 (hurricane-only excess above $10M TIV; one-year non-renewing policies; max $140M policy). By late 2025/early 2026, AOAOs in the HHRF layer reported hurricane premiums down ~30-70%, and fund usage was growing. HPIA also continues as the key writer for Lava Zone 1-2 residential property on Hawaii Island. III FAIR-Plans-by-state reporting shows roughly 2,402 HPIA habitational policies / ~$0.93B exposure (a small figure, and pre-SB-1044).

Do you also need a wrap (DIC) policy?

structurally layered (for condos): a private/E&S primary hurricane policy for the first $10M of TIV + the HHRF hurricane excess above $10M + HPIA (or private) coverage for all non-hurricane perils. For single-family homes, HPIA is paired with a separate hurricane policy where the private market will write one.

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the Hawaii Property Insurance Association. They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →