State Farm has stopped renewing hurricane insurance on single‑wall wooden rental homes across Hawaiʻi, a sharp policy shift that landlords say will squeeze an already brutal rental market. Owners are getting sticker shock from smaller carriers, and lawmakers are warning that tenants will likely see those higher costs show up in their monthly rent. The timing is hardly subtle, arriving just as hurricane season ramps up and after a recent string of major losses that have strained local insurers.
According to Hawaii News Now, State Farm has notified customers it will no longer renew hurricane policies for single‑wall rental units, a move the station reports affects “thousands” of homes because State Farm dominates the Hawaiʻi market. One landlord told the outlet that their old combined property and hurricane premium was just over $1,700, but a new hurricane‑only quote from Centauri Specialty came in at more than $2,300, a difference of more than $100 a month. State Rep. Scot Matayoshi told the station that landlords are likely to pass those higher insurance costs on to renters, making already scarce housing even less affordable.
Why insurers are pulling back
State Insurance Commissioner Scott Saiki told Hawaii News Now that single‑wall homes are simply more likely to be damaged in a big storm, and that State Farm faced concentrated risk after recent disasters. “Those kinds of homes are at higher risk of sustaining damage,” he said, adding that State Farm’s decision to withdraw hurricane coverage “helps State Farm manage the risks associated with this type of construction.” Saiki said regulators are keeping an eye on whether customers can still find replacement coverage, but emphasized that decisions about what to write remain with private companies.
State backstop exists — but with limits
The state does have a safety valve of sorts in the Hawaiʻi Hurricane Relief Fund, which was reactivated to stabilize condo master policy coverage when the private market faltered. According to the Department of Commerce and Consumer Affairs, the HHRF issues excess hurricane policies only to condominium and townhouse associations that have been turned down by at least two state‑licensed insurers and whose buildings carry more than $10 million in insured value. That narrow lane means the fund is not an off‑the‑shelf solution for most single‑family rental homes, even though the board can step in with policies if the private market becomes unworkable.
Who this hits hardest
Single‑wall construction, built from cheap grooved wood slats that were common in mid‑20th century Hawaiian homes, still dots neighborhoods across the islands, leaving older and typically lower‑cost rentals particularly exposed to this pullback. Reporting last year by Hawaiʻi Public Radio detailed a broader pattern of nonrenewals and insurer retreat that started before State Farm’s latest move. Smaller companies that still offer hurricane coverage often charge more, and some owners say their remaining options are surplus‑lines policies or state programs that come with different rules and higher costs.
Costs and alternatives for owners
Public rate tables compiled by the state show big swings in price depending on construction type and insurer, with single‑wall homes frequently landing at the upper end of hurricane‑only premiums. Those tables, along with the Department of Commerce and Consumer Affairs sample premium publication, list State Farm alongside specialty writers such as Centauri and Zephyr and highlight how widely prices can diverge based on company and building characteristics. For many landlords that means shopping multiple brokers, and in some cases paying hundreds of dollars more a year for hurricane coverage alone.
What landlords and renters should do now
Landlords are being urged to seek multiple quotes from different agents, get coverage denials in writing and consider retrofit work that could make a home more attractive to underwriters. Renters worried about what happens if a storm hits can ask landlords what their policy actually covers and look into renters insurance for their own belongings. Both sides can also bring concerns directly to the state’s Insurance Division by calling 1‑844‑808‑DCCA. Lawmakers and regulators say they are watching to see whether replacement coverage remains available and reasonably priced, and they signal that state tools could be deployed if the market fails to stabilize.
For now, older single‑wall rentals are a key market to watch this hurricane season, with premiums, carrier exits and state backstops all playing into who ultimately pays for protection. This story will be updated if insurers, regulators or the HHRF take steps that shift the coverage landscape.
