State Farm Insurance is notifying owners of older single-wall construction homes in Hawai‘i that they will no longer be eligible for hurricane coverage through the company. Affected homeowners are receiving letters detailing the change, which has raised concerns for residents relying on this coverage in a hurricane-prone state.
Unclear Scope of Policy Change
It remains uncertain whether this policy shift applies exclusively to Hawai‘i or extends to other states. A review of available reports did not reveal widespread news coverage of State Farm’s latest move.
Interestingly, CNBC recently ranked State Farm as the best insurance provider for hurricane coverage availability, making this development particularly notable for homeowners in the state.
Hurricane Coverage and Requirements in Hawai‘i
According to the Hawai‘i Department of Commerce and Consumer Affairs:
- Hurricane season runs from June 1 to November 30 annually.
- Hurricane insurance is a supplemental policy that specifically covers wind damage caused by hurricanes, separate from standard homeowners’ insurance.
- Mortgage lenders typically require hurricane insurance for loan approval.
- Flooding is not covered under most hurricane or homeowners’ policies. Separate flood insurance, backed by the National Flood Insurance Program (NFIP), must be purchased to cover flood-related damages.
For more detailed information about the differences between home, hurricane, and flood insurance, residents can refer to the state’s guide: “What Does Home, Hurricane, and Flood Insurance Cover?”
What’s Next for Homeowners
State Farm’s decision highlights the need for Hawai‘i homeowners, especially those in single-wall homes, to evaluate their insurance options and prepare for potential changes. Residents are encouraged to contact their insurance agents to explore alternative coverage options and ensure compliance with mortgage requirements.
Stay tuned for further updates as more details about this policy change emerge.